Sales activity improves for second consecutive month

City of Calgary, June 2019

Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12 percent compared to last year.

Improving sales relative to inventory levels caused the months of supply to ease to just under four months. While still oversupplied, this is an improvement from the five months of supply recorded last May. Citywide sales in May totaled 1,921 units, 11 percent higher than last year’s levels. However, sales remain 10 percent below longer-term trends. This sales growth was primarily driven by homes prices under $500,000.

Citywide benchmark prices totaled $424,600 in May. Prices have shown some signs of improvement month-over-month, but remain four percent lower than 2018 levels.

“While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes,” said CREB® chief economist Ann-Marie Lurie. “This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.”

Housing Market Facts

Detached

• Detached sales in May totaled 1,182 units. This is a 12 percent increase over last year, but still 13 percent below long-term averages. The improvement in sales was driven primarily by gains in homes priced under $500,000.
• Sales activity increased across most districts in May. However, year-to-date sales have only increased in the East, South and North East districts of the city. Citywide sales remain one percent lower than last year’s levels.
• New listings in May pulled back significantly from previous year’s levels. Combined with an improvement in sales, this resulted in inventories declining from 4,504 units last May to 3,921 units this month. This is the first time since. May 2017 that year-over-year inventories declined.
• Easing inventory and improving sales caused months of supply to ease to 3.3 months. This is still elevated compared to historical levels but represents an improvement compared to levels from the past year.
• Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices four percent lower than last year and seven percent lower than 2014 highs.

Apartment

• May benchmark prices totaled $248,200, 0.6 percent lower than last month and nearly three percent lower than last year’s levels. This is resulting in a total price adjustment of over 17 percent since 2014.
• The improvement in monthly sales was not enough to offset previous declines. Year-to-date apartment sales sit at 1,030 units. This is seven percent lower than last year and 28 percent lower than longer-term averages. Easing sales were met with fewer new listings, reducing the market inventory. This pushed months of supply to just over five months.
• If the reduction in oversupply continues, it will eventually help limit price declines. However, this market remains oversupplied and prices continue to edge down.

Attached

• Attached sales activity continue to improve in May. Year-to-date sales improved by two percent, making this the only sector to record a year-to-date improvement. Improvements occurred throughout most districts of the city, apart from the City Centre, North West, and West districts.
• New listings have also pulled back relative to sales. This is causing inventories to ease compared to last year and months of supply to trend down.
• Benchmark prices remain five percent lower than last year’s levels but have seen some modest gains on a month-to-month basis. Despite some signs of improvement, prices remain 10 percent lower than 2014 highs.

For anyone who is interested in buying or selling during this interesting market period, we would love to help!

Download: Calgary Real Estate Statistics – May 2019

April brings a slight inventory decline

City of Calgary, May 2019

There have been no significant changes occurring in sales activity, but the number of new listings coming onto the market continues to ease relative to 2018 levels.

The decline in new listings was enough to start chipping away at overall inventory levels, which have eased slightly compared to last year.

The slight adjustment in supply levels has helped support further reductions in the months of supply, which was 4.6 months in April. While this level still represents oversupply in our market, it does reflect improvement from the nearly seven months of supply that we saw at the start of the year.

“Demand remains relatively weak in the resale market. However, if supply levels continue to adjust, this could help reduce the amount of oversupply and eventually support some price stability” – CREB® chief economist Ann-Marie Lurie.

As of April, the total residential benchmark price in Calgary was $415,900. This is slightly higher than last month, but still nearly five percent lower than last year’s levels.

Housing Market Facts

Detached

• Detached sales improved by nearly three percent in April compared to last year, due to gains in homes priced under $500,000. However, with 930 sales, activity still remain 24 percent below long-term averages. Recent gains were also not high enough to offset pullbacks earlier in the year, causing year-to-date sales to fall by over five percent.
• Improving sales did not occur across all districts. In April, there was growth in the North East, North West, South and South East districts of the city. Despite some signs of sales improvement, overall sales activity remains well below 10-year averages throughout every region in the city.
• April detached inventories citywide continue to remain just above levels recorded last year. Months of supply remain relatively unchanged at four months.
• The amount of oversupply has varied significantly depending on the area of the city. Months of supply has only risen in the City Centre, South and West districts of the city.
• Despite some of the adjustments occurring in the detached sector, overall April prices remain lower than last year’s levels across all districts. Year to date, the largest year-over-year declines occurred in the City Centre, North West and South districts.

Apartment

• Despite the affordability of apartment condominiums, sales activity continues to fall across the city and in most districts. There have been 714 apartment condominium sales so far this year, the lowest level since 2001.
• The decline in new listings has started to outweigh the sales decline, causing inventories to ease. As of April, resale apartment condominium inventories totalled 1,546 units, 16 percent lower than inventory levels last April.
• The easing inventories have also caused the months of supply to decline to just above six months. While this is still a buyers’ market, this trend could help ease the downward pressure on prices if it continues.
• Apartment condominium prices in April totalled $250,400, comparable to last month, but over two percent below last year’s levels and nearly 17 percent below 2014 highs.

Attached

• Attached sales activity improved compared to last year’s levels for the second straight month, almost offsetting the declines occurring in the first two months of the year. Year-to-date sales were 1,113 units, nearly one percent below last year’s levels, and 14 percent below long-term averages.
• Year-to-date sales have improved in all districts except the City Centre, North West and West.
• Improved sales and easing listings have helped prevent further inventory gains in this sector and overall months of supply have trended down to five months.Following several months of prices trending down, semi-detached benchmark prices in April rose over the previous month. However, prices remain over five percent below last year’s levels at $395,300.
• Row prices were $284,900 in April, over five percent below last year’s levels.

For anyone who is interested in buying or selling during this interesting market period, we would love to help!

Download: Calgary Real Estate Statistics – April 2019

Oversupply persists despite improved sales activity for affordable product

City of Calgary, April 2019

March saw a modest decline in city wide sales activity compared to last year. However, sales have been rising for more affordable product in the detached and attached sectors.

Shifts in the lower end of the market have not outweighed easing across the higher priced product. First-quarter sales dropped to 3,108 units. This is nine percent below last year and 28 percent below typical levels of activity.

Price declines and relatively slow sales activity are impacting the number of new listings. For the second consecutive month, new listings eased compared to last year’s levels and long-term trends, but it was not enough to prevent inventory growth.

“If new listings continue to slow compared to sales, it could start to help with the persistent oversupply scenario weighing on our housing market,” said CREB® chief economist Ann Marie Lurie. “However, inventory is still high. It will still take time for our market to transition towards more balanced conditions and stable pricing.”

The oversupply in the Calgary market has caused further price declines this month. As of March, benchmark prices eased to $413,900, five percent below last year’s levels and just below levels recorded last month.

Housing Market Facts

Detached

• First-quarter sales declined by nearly nine percent compared to last year and 30 percent below typical levels of activity.
• Detached sales have varied depending on location and price range, with gains occurring mostly in the most affordable price ranges of each district.
• In March, citywide detached sales improved for all homes priced under $500,000.
• Despite easing in new listings, inventories increased over last year’s levels, pushing months of supply to the highest level every recorded for the month of March. When considering activity by districts, the North East and East districts have seen the level of oversupply ease compared to last year.
• Oversupply in the detached sector continues to weigh on prices across all districts in the city. Citywide detached benchmark prices eased 5.4 percent compared to last year for a total price of $475,800.

Apartment

• Resale condominium sales fell by 14 percent in March, causing first-quarter sales to total 464 units, 17 percent below last year. The decline did not occur in all districts, as sales activity improved in both the North and West districts of the city. Despite some signs of improvements in those districts, activity remains well below long-term trends.
• The months of supply has edged down from levels recorded earlier in the year, but due to weak sales, it is elevated compared to last year’s levels and represents the highest levels ever recorded for March.
• Supply in this sector is showing signs of adjusting to the lower levels of demand. New listings eased again this month compared to last year’s levels. Unlike other property types, this adjustment is impacting inventories. Inventory in March was 1,488 units, 12 percent below last year’s levels.
• Citywide, apartment condominium prices fell by 0.7 percent from last month and 2.6 percent over last year. However, in both the North East and South East districts, prices posted a modest gain over last year.

Attached

• There was a slight uptick in attached sales in March due to improvements in both the semi-detached and row sectors. Despite the gains in March, year-to-date sales remain four percent below last year’s levels and 16 percent below long-term averages.
• Year-to-date sales have eased, but there have been improvements in the South and South East districts.
• Despite some improvements in sales, citywide months of supply remain elevated.
• Prices continued to trend down for semi-detached product. March’s benchmark price was $391,000, nearly six percent below last year’s levels and 0.4 percent below last month’s price. However, the North district saw different results, as tightening months of supply supported a modest gain in prices compared to both last month and last year.
• Row prices in March remained relatively flat compared to February levels, but remain more than four percent below last year’s levels and over 13 per cent lower than previous highs.

For anyone who is interested in buying or selling during this interesting market period, we would love to help!

Download: Calgary Real Estate Statistics – March 2019

Housing market feels the chill as oversupply continues

City of Calgary, March 2019

The effects of Calgary’s economic climate continue to create weak sales activity and elevated inventory in the city’s housing market. As a result, prices are being affected.

“It is not a surprise that slowing activity in the housing market has persisted into February,” said CREB® chief economist Ann-Marie Lurie. “There has been no substantial change in the economic climate and concerns regarding potential layoffs in the energy sector are weighing on confidence.”

As of February, citywide benchmark prices were $414,400. This is nearly five percent below last February, slightly lower than last month’s figures and over 10 percent below highs recorded in 2014. While the market remains oversupplied, slower sales and price declines do appear to be influencing sellers. New listings this month eased by eight percent compared to last year for a total of 2,211 units. However, the 976 sales this month were not enough to substantially impact inventories levels, which remain elevated at 5,885 units.

Housing Market Facts

Detached

• After the first two months of the year, detached sales were 1,079 units. This is 13 percent below last year’s levels and nearly 30 percent below long-term averages. Sales eased across all city districts except the North West. Activity remained well below normal levels across all districts of the city.
• The adjustments in new listings ranged from a 15 percent increase in the North West district to a decline of 23 percent in the North district. Overall, year-to-date new listings were 2,544 units, nearly two percent below last year’s levels.
• Despite some adjustments in new listings, average inventories in the detached sector so far this year rose by 25 percent compared to last year. However, some of the most affordable detached areas, including the North East and East districts, have seen inventories fall compared to last year.
• With detached months of inventory remaining above five months, prices continue to trend down. In February, citywide detached benchmark prices were $475.600, 0.2 percent below last month and over five percent below levels recorded last February.

Apartment

• Despite the relative affordability of apartment product, sales activity remained slow with 149 sales.
• Unlike the detached sector, the seventh consecutive year-over-year decline in new listings is starting to have an impact on inventory levels.
• In February, inventory levels totaled 1,301 units. This is nine percent below levels recorded last year. Inventories did ease, but slow sales in February kept the months of supply near nine months. Apartment condominium prices were $252,300 in February, a 1.7 percent decline compared to last year, but similar to levels recorded last month.
• Apartment condo prices have fallen by 16 percent over the previous monthly highs.
• Citywide benchmark prices have eased, but some districts of the city have recorded modest gains. This is not enough to erase previous declines, but points toward price stability in parts of the market.

Attached

• Conditions remained relatively unchanged in the attached sector, as months of inventory remained near seven months and prices have remained unchanged from last month, but over four percent below last year’s levels.
• Like the apartment sector, activity can vary significantly depending on location. Benchmark prices for semi-detached product eased by over five percent compared to last year, with the steepest declines occurring in the South and City Centre districts.
• Prices slightly improved in the North district.
• Row prices declined by nearly four percent compared to last year. Unlike the semi-detached sector, prices eased across all districts.

For anyone who is interested in buying or selling during this interesting market period, we would love to help!

Download: Calgary Real Estate Statistics – February 2019

New year kicks off with slow sales

City of Calgary, February 2019

As economic challenges linger into 2019, housing markets remain on a sluggish pace. January sales totaled 804 units, 16 percent below last year and 21 percent below long-term averages for the month.

“The slow start to the year does not come as a surprise, as concerns about job losses and the state of the energy sector weigh on consumers. We anticipate that the slow market conditions will persist throughout much of the first quarter,” said CREB® chief economist Ann-Marie Lurie.

The number of new listings entering the market remained comparable to last year, but those levels far surpassed sales activity. This has resulted in further gains in inventory levels. Elevated inventories relative to sales caused months of supply to rise to nearly seven months. Persistent buyers’ market conditions have continued to impact prices. Citywide residential benchmark prices eased to $414,800 in January. This is nearly one percent lower than December figures and four percent below January 2018 levels.

Housing Market Facts

Detached

• Detached sales eased by 17 percent compared to last year. However, declines did not occur across all districts, as sales activity improved in both the North West and North East districts. The most significant sales declines occurred in the North and West districts of the city.

• New listing rose across all districts except the North East, North and South East districts. Only the North East district recorded easing months of supply compared to last year.

• Detached benchmark prices totaled $476,500, a one percent decline compared to December and over four percent lower than last January.

• Prices eased across all districts. The largest year-over-year declines occurred in the South, North West, and City Centre districts.

Apartment

• Apartment sales totaled 126 units in January. This is 13 percent below last year and over 20 percent below long-term averages for the month.

• Slower sales and lower new listings helped inventory levels ease. Currently, there are 1,173 units in inventory, which is nine percent lower than January 2018 levels.

• Despite some adjustments in inventory, months of supply remained elevated at nine months, impacting prices. While prices remained relatively flat compared to last month, they declined by two percent compared to levels from last January.

• Prices remain well below previous highs, but there were some price improvements compared to last year in both the North East and South East districts.

Attached

• Sales declined for both row and semi-detached product types. New listings rose, causing inventories to rise for both product types.

• With the attached sector firmly reflecting buyers’ market conditions, prices eased by over four percent for a January benchmark price of $313,700.

• Semi-detached prices eased by nearly five percent compared to last year for a total of $393,100. The steepest declines occurred in the City Centre and South districts, with adjustments of over six percent.

• Row prices declined by four percent compared to last year for a total of $284,300. All districts recorded price declines, but the most notable decline occurred in the City Centre, where prices were nearly eight percent lower than last year.

For anyone who is interested in buying or selling during this interesting market period, we would love to help!

Download: Calgary Real Estate Statistics – January 2019

Job market weakness and lending restrictions a common thread in 2018’s housing market

City of Calgary, January 2019

As over-supply continues I Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December.

“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB® chief economist Ann-Marie Lurie.

“This contributed to elevated supply in the resale market resulting in price declines.”

December sales totaled 794 units, a 21% decline over the previous year. Overall year-to-date sales in the city totaled 16,144 units. This is a 14% decline over 2017 and nearly 20% below long term averages.

Throughout 2018, the months of supply remained elevated and averaged 5.2 months. Price declines occurred across all product types and have caused city wide figures to remain over 9% below the monthly highs recorded in 2014.

Housing Market Facts

Detached

• Detached sales declined across all districts in 2018. With citywide sales of 9,945 units, activity remains 21 per cent below typical levels for the year.
• Detached inventories were higher than last year’s levels for each month of the year, including December. Slow sales caused the market to be oversupplied through most of 2018.
• Detached benchmark prices totaled $481,400 in December, a one per cent decline over last month and a three per cent decline over last year. Overall, 2018 prices declined by 1.5 per cent compared to last year.
• Prices have eased across most districts in 2018. The largest declines this year have occurred in the North East, North West and North districts.

Apartment

• Apartment sales totaled 2,663 units in 2018. While the decline is less than other product types, levels are 22 per cent below long-term averages.
• The apartment condominium sector has struggled with oversupply for almost three years and 2018 was no exception.
• However, supply has been easing, as inventories this year averaged 1,584 units, one per cent below last year’s levels.
• Despite slowing supply growth, the market remained oversupplied, causing further price declines. In December, benchmark prices were $251,500, over two per cent below last year. Annually, prices have declined by nearly three per cent for a total decline of 14 per cent since 2014.
• Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts.

Attached

• Declines for both row and semi-detached product resulted in 2018 attached sales of 3,536 units, a 15 per cent decline over the previous year and 14 per cent below long-term averages.
• Slower sales activity prompted some pull-back in new listings, but this was limited to the row sector. Row new listings declined by four per cent and semi-detached new listings rose by nearly 15 per cent in 2018.
• Despite some adjustments to new listings, inventory levels remained elevated, keeping the market in buyers’ market territory and putting downward pressure on prices.
• In December, the semi-detached benchmark price totaled $397,500. This is a monthly and year-over-year decline of 0.8 and 3.8 per cent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as 2018 prices remain just below 2017 levels. Overall, annual prices remain 1.4 per cent below 2014 peak levels.
• Row prices have also been edging down. As of December, row prices were $288,400, a 1.5 per cent decline from last month and nearly four per cent below last year’s levels. Overall, 2018 prices remain two per cent below last year’s levels and nearly 10 per cent below previous highs.

Download: Calgary Real Estate Statistics – December 2018

Sitting below long-term averages, November sales in the city totaled 1,171 units.

City of Calgary, December 2018

For the year so far, sales activity has totaled 15,349 units, a 14 per cent decline over last year and nearly 20 per cent below long-term averages.

“Recent challenges in the energy sector have weighed on consumer confidence over the past month. Combined with weakness in the employment market and further gains in lending rates, this is impacting ownership demand,” said CREB® chief economist Ann-Marie Lurie.

New listings eased by seven per cent in November compared to last year. The adjustment in new listings has helped prevent further inventory gains, with 6,501 units in overall inventory, but levels remain well above the 5,683 units in inventory seen last year and 32 per cent higher than typical levels for November.

“Higher inventories and weaker sales are resulting in buyer’s market conditions and price declines,” said Lurie.

Housing Market Facts

Detached 

• Detached sales declined across all districts in November. With citywide sales of 679 units, activity remains 21 per cent below typical levels for the month. 
• New listings eased by three per cent compared to last year, due to declines mostly in the North East, North and South East districts. Year-to-date new listings this year have increased in all areas except the North East and East districts. 
• Inventories in the detached sector totaled 3,491 units, 26 per cent higher than last year’s levels. Months of supply sits at five months, well above the three-month typical for November. 
• Detached benchmark prices totaled $486,000 in November, a one per cent decline over last month and a three per cent decline over last year. This is nearly seven per cent below monthly highs recorded in October 2014. 
• Prices have eased across all districts in November. On a year-to-date basis, the largest declines this year have occurred in the North East and North districts. This is likely due to the increased competition from the new-home sector. The districts that remain furthest from price recovery are the North West and South districts.

Apartment 

• Despite year-over-year gains in sales in November, citywide apartment sales have totalled 2,557 units so far this year. This is five per cent lower than last year and 21 per cent below long-term averages. 
• The majority of activity in condos is located within the city centre, representing nearly 48 per cent of all the sales activity. 
• Following years of oversupply, the number of new listings in the apartment sector continues to ease, helping prevent further significant gains in inventories and even contributing to inventory reductions in the South, East and North East districts. 
• Despite some adjustments in inventories, most areas continue to struggle with oversupply, causing further price declines. Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts. 

Attached 

• Year-to-date attached sales totaled 3,344 units, a 16 per cent decline over the previous year and 14 per cent below long-term averages. Sales activity eased across most districts except for the North East, where sales remained relatively stable because of improvements in row activity. 
• Overall, rising new listings continue to place upward pressure on inventory levels and the gains have mostly occurred with semi-detached product. 
• Oversupply conditions have weighed on prices. In November, the semidetached benchmark price totaled $400,700. This is a monthly and year-over-year decline of 0.67 and 3.3 per cent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as year-to-date prices remain comparable to 2017 levels. 
• Row prices have also been edging down, but at a slower pace than semi-detached product. As of November, row prices were $292,900, a 0.2 per cent decline from last month and just over three per cent below last year’s levels. Overall, year-to-date prices remain nearly two per cent below last year’s levels and nearly 10 per cent below previous highs.

Download: Calgary Real Estate Statistics – November 2018

 
Download: Calgary Real Estate Statistics – October 2018
 

With no change in the economic climate, Calgary’s sales activity totaled 1,273 units in September, a 13 percent decline over the previous year and well below long-term averages. There was a pullback in sales across all product types, most notably the detached market.

“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand,” said CREB® chief economist Ann-Marie Lurie. “At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.”

Inventories totaled 7,941 units, pushing the months of supply to 6.25. This continuation in oversupply is placing downward pressure on prices. The unadjusted citywide benchmark price totaled $428,700 in September. This is nearly one per cent below last month and three per cent below last year’s levels.

Download: Calgary Real Estate Statistics – September 2018

Patience required in Calgary’s housing market recovery

City of Calgary, July 3, 2018 – Recent struggles in the job market, accompanied by yet another interest rate increase, is piling on to the decisions potential purchasers have to make in the housing market.

The month of July saw 1,547 units sold in Calgary, nearly five per cent below last year. New listings eased to 2,964 units, causing inventories to total 8,450 units. With more supply than demand, prices continued to edge down, with a citywide average of $435,200. This amounted to a month-over-month price decline of 0.30 per cent and year-over-year decline of 1.89 per cent.

“Despite some positive momentum in some aspects of our economy, our job market has continued to struggle as of late, with some easing in total employment levels over the past few months and persistently high unemployment rates,” said CREB® chief economist Ann-Marie Lurie.

“Also, the Bank of Canada raised rates again in July. Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time supply remains high and is resulting in an oversupplied market.”

Citywide months of supply have risen for each property type and currently range from nearly five months in the detached sector to seven months in the apartment sector. These elevated levels have been placing pressure on prices in the city.

The apartment ownership sector continues to see the steepest declines, with year-to-date benchmark prices averaging $257,343, three per cent below last year and nearly 14 per cent below 2014 highs.

Detached:

• Oversupply issues continue to worsen in each district of the city compared to last year. However, compared to historical conditions, conditions today remain better than in 2016 in both the West and City Centre districts.
• Year-to-date, the West and City Centre areas have recorded prices higher than last year’s levels and continue to edge towards price recovery. Benchmark prices in the West have averaged $733,329 this year, comparable to previous highs.
• City Centre benchmark prices have averaged $693,243, nearly three per cent below previous highs. Most districts have recorded detached prices that remain over four per cent below previous highs.

Apartment:

• Easing new listings in the apartment condominium sector have prevented any further gains in the amount of inventory in the market.
• Supply levels remain elevated compared to sales, keeping yearto-date prices three per cent below last year’s levels and nearly 14 per cent below previous highs.
• Citywide inventory levels remain just below last year. July inventories edged down in the North East, North, North West, South and East areas of the city compared to the previous year.
• Levels remain elevated by historical standards, but any reductions in inventory can help reduce oversupply.

Attached:

• Like the other sectors, attached sales have been easing this year, with 2,225 sales this year representing a 15 per cent decline over the previous year.
• Gains in new listings pushed up inventory levels and months of supply compared to last year.
• Citywide year-to-date semi-detached prices have eased by nearly one per cent compared to last year. Benchmark price changes have ranged from a three per cent decline in the North West district to a six per cent increase in the South district. Despite the annual gain this year in the South district, semidetached prices remain nearly five per cent lower than that district’s peak.
• Year-to-date benchmark row prices have increased on a citywide basis due to gains in the City Centre, North and North West districts. The annual gain is a positive move towards recovery, but row prices remain well below previous highs in every district of the city.

For anyone who is interested in buying or selling during this interesting market period we would love to help!

Download: Calgary Real Estate Statistics – July 2018