City of Calgary, October 1, 2016 – The segment of Calgary’s housing market with the greatest influence on the overall market is showing signs of pricing stability. The detached benchmark price totaled $503,400 in September, which is 3.3 per cent below last year, but the second consecutive month at this price level. While overall economic conditions remain soft, for now the detached sector is demonstrating some steadiness in terms of pricing. “The decline in demand has caused many to anticipate steeper price declines for detached homes,” said CREB® chief economist Ann-Marie Lurie. “That hasn’t happened in large part because detached supply levels haven’t climbed as sharply as many expected. There was a limited amount of supply in the overall market when this cycle began, and while levels did rise and remain somewhat elevated, they were well below previous highs.” The level of detached new listings also eased compared to last year, helping push down year-over-year inventory levels for the second consecutive month.

“Consumers are really starting to come to terms with the current environment,” said CREB® president Cliff Stevenson. “Most sellers have adjusted their expectations at the same time that many buyers are realizing the prices are reacting very differently in different segments of the market. We’re just not seeing the price declines that buyers have been expecting in all segments of the market.”

It is really interesting to see how different market segments are reacting to the downturn. The absorption rates for detached homes in the bedroom communities of Airdrie, Cochrane and Okotoks are very different with Airdrie continuing to out-perform Cochrane and Okotoks and even the City of Calgary!

Despite the Detached Benchmark Price holding at $503,400 for two months it is important to note that the absorption rate for Detached homes in Calgary has declined every month since June. The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.

If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download Calgary and Area Real Estate Statistics – September 2016

City of Calgary, September 2, 2016 – Overall sales activity was down again in August, totaling 1,567. However, this figure does not reflect the big differences in activity between the detached sector, versus the high density apartment and attached segments of the market. “While overall sales have eased for detached homes, so too has the amount of new listings on the market preventing inventories from reaching previous highs and limiting the downward pressure on pricing,’ said CREB® chief economist Ann-Marie Lurie. “This is not the case in both the attached and apartment sectors which have recorded inventory levels near August highs.”

The detached benchmark price totaled $503,200 in August, 3.3 per cent below last year, but similar to levels recorded last month. Meanwhile, condominium apartment prices continue to decline totaling $274,900 in August, 7 per cent below last year and are at levels comparable to figures reported at the end of 2013.

Price declines were higher in the apartment sectors, due to the more pronounced imbalance between supply and demand. On average, apartment inventories rose to levels well above historical norms. At the same time, sales are at their weakest level since 2003 causing months of supply to average over 6 months so far this year.

It is really interesting to see how different market segments are reacting to the downturn. The absorption rates for detached homes in the bedroom communities of Airdrie, Cochrane and Okotoks are very different with Airdrie continuing to out-perform Cochrane and Okotoks and even the City of Calgary!

The best time to buy is when there is a lot of inventory from which to choose. For those who are considering taking advantage of the low interest rates to invest in real estate there are several market segments with low absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us. We would love to help!

Hope this helps!

Susanita de Diego

Download Calgary and Area Real Estate Statistics – August 2016

City of Calgary, August 2, 2016 – In step with City census data on declining net migration levels, housing sales activity totaled 1,746 units in July, a 12.3 per cent decrease over last year and the 20th consecutive month of year-over-year sales declines. “Continued pullback of sales activity is a sign of economic conditions,” said CREB® chief economist Ann-Marie Lurie. “The number of unemployed workers keeps rising and when you combine job losses with declining net migration, the result is going to be weaker housing demand.”

Slower sales were accompanied by declining new listings in July. This helped prevent further inventory gains and minimize the downward pressure on benchmark prices. By months end, the residential benchmark price was $440,000, similar to last month, but 4.2 per cent below July figures from the previous year.

While detached price seem to be leveling, this is not the case for all property types. With over six months of inventory in the apartment sector, oversupply continues to create steep price declines.

It is really interesting to see how different market segments are reacting to the downturn. The absorption rates for detached homes in the bedroom communities of Airdrie, Cochrane and Okotoks are very different.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

Download Calgary and Area Real Estate Statistics – July 2016

City of Calgary, July 4, 2016 – Calgary home prices continue to slide in most areas of the market, but not at the rate that many might expect. This is partly due to June’s resiliency in the detached and semi-detached sectors of the market, where sales compared to new listings and standing inventory started returning to more balanced levels.

“The detached market has been gradually moving towards more balanced conditions, helping to prevent price levels from declining at the faster rates we saw in the previous two quarters,” said CREB® chief economist Ann-Marie Lurie. “While this is welcomed news for sellers, it’s very likely that pricing challenges will persist in the housing market until economic conditions start to improve.”

Detached benchmark prices totaled $502,400, which is 0.4 per cent higher than last month, but 3.4 per cent lower than last year’s levels. This is the first time in eight months that detached prices recorded a monthly gain, helping ease the quarterly decline from 2.2 per cent in the first quarter to 0.7 per cent in the second quarter.

Overall sales activity remained relatively weak in June, falling by seven per cent to 2,028 units. Inventory levels went in the other direction and continued to climb in June to 5,973 units, 16 per cent higher than last year. Both the attached and apartment segments of the market have recorded inventory gains around 30 per cent, far greater than the year over-year increase of five per cent in the detached sector.

Higher inventories and weaker demand continue to have a larger impact on pricing in the apartment and row sectors. June apartment prices slid by another 0.1 per cent over last month, pushing the average year-to-date benchmark price down 5.3 per cent below last year. Attached product experienced a monthly slide of 0.3 per cent, mostly due to steeper price declines in row style product.

Those who have been waiting for the bottom of the Calgary Detached market to buy should pay close attention to this news release from the Calgary Real Estate Board. Not only has the Benchmark Price mad a move in the positive direction but the absorption rate has increased as well.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – June 2016

City of Calgary, June 1, 2016 – Calgary’s housing inventory was on the rise once again in May as new

When compiling this information every month I am sometimes surprised at how differently market segments perform. We have seen improvements in the absorption rates in all reported segments EXCEPT for Calgary Apartments and Cochrane Detached homes.

This data demonstrates why it is so important to look at all of the factors in your particular market segment when you are selling or buying.

Despite the super-heated markets in Vancouver and Toronto, interest rates continue to stay at historic lows, making this an ideal time to buy in any market segment.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – May 2016

Market imbalance in Calgary’s residential resale housing market continue to weigh on citywide prices in April

There is finally good news! In every reported market segment we have seen an increase in the absorption rates! Some market segments are performing better than others, and we are definitely not out of the woods, but the market is moving in a recovery direction!

For those who are selling, it is vital to know how the market is performing for your specific type of property! For those who are interested in investing in real estate, this is an ideal market! Interest rates continue to favour borrowers.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Hope this helps!

Susanita de Diego

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – April 2016

Hope this helps!

Susanita de Diego

Monthly prices decline for fifth consecutive month.

February sales totalled 1,127 units in Calgary, a 6.63 per cent drop over last year and 37 per cent lower than long-term averages for the month.

City wide unadjusted benchmark prices totalled $445,000 in February, a 0.63 per cent decline over January and 3.45 per cent lower than levels recorded last year. 

“Slow sales and elevated housing inventory has resulted in further price declines,” said CREB® chief economist Ann-Marie Lurie. “Given the current economic environment, it is no surprise that consumer confidence and housing demand is being impacted.”

Calgary has seen employment fall for eight consecutive months, while unemployment rates have reached levels higher than the previous recession, said Lurie, adding that these conditions are expected to persist over the next several months.

“The high volume of inventory that we’re seeing has pushed sellers to be more realistic about their pricing expectations and the amount of time their properties may be on the market,” said CREB® president Cliff Stevenson. “Buyers are less likely to submit an offer if there’s a big gap between the listing price and what they are willing to pay. A solid selling strategy can really make the difference in this market.”

For those who are selling, it is vital to know how the market is performing for your specific type of property! For those who are interested in investing in real estate, this is an ideal market! Interest rates continue to favour borrowers.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – February 2016

Hope this helps!

Susanita de Diego

Slow sales activity and inventory gains place downward pressure on prices.

Calgary’s housing market is starting 2016 firmly in buyers’ market territory much the same as last year ended.

City wide, January sales totaled 763 units, 13 per cent below last year and 43 per cent below long-term averages. While new listings declined by 16 per cent compared to January 2015, the number of new listings far outpaced the sales, causing inventory gains. January’s city wide months of supply levels rose above six months.

“The recent slide in energy prices has raised concerns about near term recovery prospects for the city,” said CREB® chief economist Ann-Marie Lurie. “Energy market uncertainty and a soft labour market are weighing on many aspects of our economy, including the housing sector.”

“As expected, the imbalance between housing supply and demand is continuing to place downward pressure on prices,” said Lurie. “However, the recent price retraction has not erased all the gains recorded in recent years, as the benchmark price remains 4.41 per cent above the January 2014 price of $428,400.”

While all property types have recorded price contractions from recent highs, the largest price declines have occurred in the apartment sector as this segment has had elevated months of supply since the second quarter of 2015. The apartment benchmark price totaled $281,900 in January, a year over-year decrease of 6.35 per cent and 2.12 per cent lower than the previous month’s price. In fact, apartment sector prices have once again fallen below the 2007 monthly high of $301,500.

For those who are selling, it is vital to know how the market is performing for your specific type of property! For those who are interested in investing in real estate, this is an ideal market! Interest rates continue to favour borrowers.

If you are curious about the investment market or the current market value of your home, please feel free to contact us.

Download Calgary and Area Real Estate Statistics – January  2016

Hope this helps!

Susanita de Diego

Elevated supply levels placed downward pressure on prices in December.

With the focus shifting toward the holiday season, December sales activity slowed to 878 units in the city, 18 per cent below last year at this time and well below the five and 10-year averages.

As a result, the unadjusted benchmark price dipped to $448,800, a 0.42 per cent decline over the previous month and 2.33 year over year. CREB® chief economist Ann-Marie Lurie noted December followed a pattern established early on in 2015, which was characterized by slower housing demand. “Economic uncertainty, followed by weak economic conditions and job losses, contributed to slowing housing demand throughout the year,” she said.

On an annual basis, sales activity declined by 24 per cent in the detached sector and 33 and 28 per cent in the apartment and attached segments, respectively.

While December prices for both the detached and attached sectors were 1.91 and 1.29 per cent lower than levels recorded at the beginning of 2015, on an annual average basis, they remained 1.35 and 1.84 per cent above 2014 numbers.

Anyone who has been following the media reports on real estate knows that the Calgary Real Estate Market in general has corrected. However the data shows that some market segments are less affected than others. In the City of Calgary the Apartment sector has been the hardest hit with less than 9% of available apartments selling in the month of December.

For those who are selling, it is vital to know how the market is performing for your specific type of property!

Please feel free to contact us with any questions you may have.

Download Calgary and Area Real Estate Statistics – December 2015

If you are curious about the current market value of your home, or market conditions in general, please feel free to contact us.

Hope this helps!

Susanita de Diego

Persistently high inventory levels within Calgary’s residential resale housing market, combined with weak sales activity, contributed to buyers’ conditions in November.

The combination of both soft sales and elevated listings caused months of supply to rise above four months. It represents the third consecutive month that housing supply in the city has remained near four months, which is an indicator that supports buyers’ conditions.

“The housing market is reflecting the realities of the economic conditions,” said CREB® chief economist Ann-Marie Lurie. “Calgary has continued to post job losses in the energy sector, unemployment levels are high, wages are down and recovery expectations have changed. All of these factors have contributed to the weak demand we have seen throughout the year.”

It’s definitely a “Catch 22” kind of market. With the interest rates at historic lows and the decline of market values this is truly a terrific time to buy an investment property, but because of the job losses, there is only a small number of prospective buyers.

For those who are selling, it is vital to know how the market is performing for your specific type of property!

Please feel free to contact us with any questions you may have.

Download Calgary and Area Real Estate Statistics – November 2015

If you are curious about the current market value of your home, or market conditions in general, please feel free to contact us.

Hope this helps!

Susanita de Diego