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

Well, it looks like we are in for a bit of a bumpy ride! All reported Calgary Real Estate market segments are showing the effects of the economic downturn due to the fall of oil prices and the resulting layoffs. However it is important to note that in some market segments, the market is still better than in 2011. If you are selling during this market climate you will need to get the correct information from your Realtor to make good decisions. Please feel free to contact us with any questions you may have.

In this report you will notice that the Calgary Real Estate Board has changed the categories of the reported market segments. What they used to categorize as “Attached” has now been broken out into two categories; “Semi-Detached” and “Row”. Row is almost always condominium ownership or townhomes and Semi-Detached can be either but is usually fee simple ownership.

Current market conditions have created excellent buying opportunities for investors. There is more inventory to choose from and the rates are still extremely low! The City of Calgary is predicting that our population will grow to 1,342,600 by 2019 and that 85,000 of that population growth will be new residents, all of whom will need places to live!

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 – October 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

Current market conditions have created excellent buying opportunities for investors. There is more inventory to choose from and the rates are still extremely low!

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 – September 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

Although the Calgary Detached absorption rate was lower in August 2015 compared to July 2015, the absorption rate was still better than in 2011 and 2012. In addition the inventory was higher in 2011 and 2012 than in August 2015. So while we are feeling the effects of a volatile oil and gas sector, the market has not yet reached the market conditions of 2011 and 2012.

Of course every neighbourhood and price segment is unique and will have its own market pattern but the market as a whole seems to have continued to be in balanced conditions.

Download Calgary and Area Real Estate Statistics – August 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

Judging from the data, it looks like some buyers were on holiday in July! Sales and absorption rates were slightly down in most reported markets, but so is inventory. It will be very interesting to see what happens for the month of August with a predicted further reduction in the Bank of Canada benchmark rate.

Of course every neighbourhood and price segment is unique and will have its own market pattern but the market as a whole seems to have continued to be in balanced conditions.

Download Calgary and Area Real Estate Statistics – July 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

It’s as if the real estate market doesn’t know what is happening in the oil and gas industry. In almost every market segment the data shows better June 2015 markets than in 2011 and 2012! And just look at the City of Calgary Detached Benchmark, Average and Median prices, all of which showed slight price gains over May 2015!

Download Calgary and Area Real Estate Statistics – June 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