Calgary housing market prices hold, but sales fall.

City of Calgary, March 1, 2018- The new year opened predictably, with monthly figures close to the Januarys of the past three years.

Residential home sales declined in February, but a decline in new listings helped keep prices steady this month.

Sales totaled 1,094 units in February; 18 per cent below last year’s activity. Easing sales occurred across all property types this month, which outpaced the sales growth that occurred in January. After the first two months of the year, sales activity remains well below longer term averages.

“Housing market conditions are still adjusting to rising lending rates and changes in lending requirements. This process is expected to be bumpy, with demand adjustments leading the changes,” said CREB® chief economist Ann-Marie Lurie. “However, it is important to remember that it is early in the process and the impact on prices will ultimately be dependent on the supply response.”

A decline in new listings was not enough to prevent further gains in inventory levels, but it offset some of the impact of slower sales activity. In the detached sector, activity in the $600,000 – $999,999 range recorded the largest gains in supply relative to sales. “This is a market where the fundamentals of a sound pricing strategy need to be understood by sellers. At the same time, savvy buyers typically have a clear understanding of how much of a mortgage they can get,” said CREB® president Tom Westcott.

“With all the recent changes, potential purchasers should be obtaining pre-approvals so they understand exactly what they can afford prior to making an offer on a home. It also provides them flexibility in this market.”

Year-to-date sales activity remained below long-term norms for all districts within the city, but year-over-year price adjustments ranged from over six per cent declines to four per cent gains, depending on district and property type.

After the first two months of the year, detached sales totaled 1,240 units. This is 12 per cent below last year and 22 per cent below long-term averages. When considering supply levels in the market, conditions have remained relatively unchanged, as months of supply continues to sit just below four months. Detached benchmark prices this year have averaged $501,100, similar to levels recorded last year.

The apartment condominium market continues to remain oversupplied, with months of supply averaging nearly eight months so far this year, which is higher than the average of seven months recorded over the same time last year. Elevated supply levels are preventing any price recovery, as the benchmark price has averaged $256,300 this year, three per cent below last year.

Semi-detached and row product continue to demonstrate different levels of oversupply, impacting price recovery. Semi-detached prices have averaged $417,300 so far this year, over one per cent higher than levels recorded last year. Meanwhile, row prices continue to ease and are averaging $296,050 over the same time frame.

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

Click below to view the how the following sectors performed for February 2018:

Download: Calgary Real Estate Statistics – February 2018

As expected, Calgary sales activity similar to last year.

City of Calgary, February 1, 2018- The new year opened predictably, with monthly figures close to the Januarys of the past three years.

With new mortgage rules and rates officially in effect, sales activity in January remained comparable to last year, as rising sales for attached properties were not enough to offset declines in both the apartment and detached sector.

Overall January sales totaled 958 units, nearly two per cent above last year and 11 per cent below long-term averages. “2018 was kicked off with higher rates and the official implementation of the new mortgage requirements. While it is too early to see the impact of these changes, so far, January levels are consistent with what we saw last year,” said CREB® chief economist Ann-Marie Lurie “The recovery will be bumpy, and we will continue to monitor the impact of the lending changes relative to the overall economic climate.”

Stable sales were met with rising new listings, causing further gains in inventory levels and impacting prices. Citywide, unadjusted prices totaled $432,300, 0.21 per cent below last month and 0.25 per cent below last year’s figures. Prices eased across all product types compared to last month, but price declines were more pronounced in the apartment and attached sectors.

In the detached sector, new listings rose with declining sales activity for product priced over $500,000. However, product priced between $300,000 and $399,999 saw an increase in activity. This will be an adjustment to the new reality buyers and sellers face, as pockets of the market will experience a mismatch between supply and demand.

“Sellers needs to be aware of the competing supply in the market. This can influence the timing of their decision, along with setting realistic expectations regarding time on the market and selling price,” said 2018 CREB® president Tom Westcott. “For buyers, getting pre-approved for a mortgage is essential, along with getting advice from a REALTOR® to get into a home they will be happy with.”

For those who are considering taking advantage of the still low interest rates to invest in real estate there are several market segments with lower absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us.

Detached sales totaled 583 units, similar to last year and 13 per cent below long-term averages. Easing sales were met with rising new listings. Months of supply rose to 3.75, slightly higher than last year’s levels at 3.18 months. Overall detached benchmark prices totaled $499,400, similar to levels recorded both last month and in January 2017.

Apartment sales eased to 145 units, well below long-term averages, but consistent with the slower activity seen over the past three years. New listings eased modestly compared to last January, but it was not enough to cause any meaningful change in inventory levels. Elevated supply compared to demand continued to weigh on pricing.

The attached segment of the market saw a rise in sales, but was met with a stronger gain in inventory levels. This caused the months of supply to push above last January’s figures. The elevated inventory relative to sales continued to weigh on prices. Attached prices totaled $328,000 in January 0.64 per cent below last month and 0.33 per cent below 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 2018

December sales activity rises again but so does supply.

City of Calgary, January 2, 2018 – Sales activity for all product types improved in December and pushed monthly sales to long-term averages for the second month in a row.

However, new listings also rose, keeping inventory elevated compared to typical levels for December. With more supply remaining compared to sales, benchmark prices edged down for the fifth consecutive month.

“Many of the economic indicators continue to post modest improvements, including improving sales. However, demand gains have not outpaced the additional supply coming into the housing market. This is creating some of the bumpiness in terms of price recovery,” said CREB® chief economist Ann-Marie Lurie, who added that prices have stayed comparable to last year.

The gap between detached supply to demand closed in the first half of 2017 and supported early price growth. As prices improved, this was perceived as a signal for many who delayed selling their home and caused a late rise in inventory which limited price growth.

The rise in sales relative to new listings improved this month, helping ease inventory levels over the previous month and keeping the months of supply relatively stable. However, the amount of supply relative to the sales in the market remains elevated. This continues to weigh on prices.

Citywide benchmark prices totaled $436,700, 0.50 per cent below last month, but 0.46 per cent above last year’s levels. Both median and average prices recorded a more significant decline compared to last year. This should not come as a surprise, as more sales in the lower price range this year compared to last November would cause a more pronounced drop in average and median prices.

The average annual detached benchmark price eased across all districts in the fourth quarter compared to third quarter results, but remained higher than last year’s levels in most districts. This is primarily caused by inventories that were higher than sales activity. Annual total residential prices remain below peak levels in all districts.

Elevated inventories compared to sales weighed on apartment prices across all districts. Annual price declines ranged from a high of 6.2 in the East to a low of 2.4 per cent in the West. The City Centre, West and South districts contain over 70 per cent of apartment sales. Each of these areas have prices that remain 11.7, 10.7 and 12.5 per cent below previous annual highs.

Challenges continue to face the apartment sector, with elevated supply in the resale market. The new home and rental markets weighed on this sector. The excess supply caused average annual benchmark prices to decline by four per cent this year. This is a total annual adjustment of nearly 12 per cent since the start of the recession.

For those who are considering taking advantage of the still low interest rates to invest in real estate there are several market segments with lower absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us.

For all of your Real Estate needs we would love to help!

Susanita de Diego

Download: Calgary Real Estate Statistics – December 2017

Inventory increases and sales drop in September, but overall sales for the year remain higher than last year.

City of Calgary, October 2, 2017- Strong gains in the first-half of 2017 has put the Calgary year-to-date sales at seven per cent above last years’ levels and 11 per cent below long-term averages, but challenges remain with easing sales and rising new listings.

Inventories rose across all property types to 6,861 units, while both apartment and attached-style properties saw the highest inventory on record for the month of September.

“The recent rise in inventories is preventing further price recovery as sales activity has moderated over recent months. This does not come as a surprise as sales activity is expected to remain modest by historical standards until more substantial economic improvements take hold,” said CREB® chief economist Ann-Marie Lurie.

New listings in September totaled 3,266 units, a year-over-year gain of nearly 10 per cent.

“There are several factors influencing new listings. Given the falling prices over the past two years, some sellers were waiting for market conditions to improve prior to listing their homes. More stability in the market has prompted many of those sellers to no longer delay their listing decision,” said CREB® president David P. Brown.

“In some segments, rising new home inventories are also impacting total housing supply. Ultimately, prices are affected. However, this inventory also opens up opportunity for buyers to step up into a home that was financially unattainable.”

As of September, unadjusted benchmark prices totaled $441,500. This is 0.2 per cent below last month, but nearly one per cent above last year. Downward price pressure this month occurred across most product types. However, year-to-date benchmark prices in the detached sector remain comparable to last year.

Prices in the detached sector remain relatively stable compared to last year. Condominium apartment prices remain four per cent below 2016 levels and twelve per cent below 2014 highs. This sector continues to struggle with price declines resulting from excess supply as months of supply pushed above eight months.

It looks like the data is predicting a very slow winter season in all reported market segments. It is interesting to note that of all of the bedroom communities Cochrane has the highest absorption rate.

For those who are considering taking advantage of the still low interest rates to invest in real estate there are still several market segments with lower absorption rates to choose from.  If you are interested in an investment strategy specific to your needs please contact us.

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – September 2017

Growth in new listings outpaced sales preventing inventory declines

City of Calgary, September 1, 2017 – Sales posted a modest gain in August, but a rise in new listings kept inventory levels elevated.

The second month of higher inventories compared to sales weighed on prices for the month. The unadjusted city wide benchmark price totaled $442,300 in August. This is 0.3 percent below last month, but remains nearly one per cent above last year’s levels. Overall total residential prices remain four per cent below peak levels.

“Employment growth is contributing to the stability in sales activity, but it is not enough to meet the recent rise in listings and make a substantial dent in inventory levels,” said CREB® chief economist Ann-Marie Lurie. “Unemployment rates remain elevated and job growth is mostly occurring outside the energy sector, slowing the recovery process. Broader economic improvements will be required prior to it translating into substantial improvements in the housing market.”

While most market segments showed a decrease the absorption rate the other bigger news is that the Bank of Canada announced that it has increased the prime rate by one-quarter point to 1.0 per cent, its second 25-basis-point increase since July.

The move, which will likely be a surprise for some, came less than a week after the latest Statistics Canada numbers showed the economy expanded by 4.5 per cent in the second quarter.

That followed unexpectedly healthy growth in the first three months of 2017 and easily exceeded the Bank of Canada’s projections.

In a statement Wednesday, the bank said solid employment and wage growth led to strong consumer spending, while the key areas of business investment and exports also improved.

“Recent economic data have been stronger than expected, supporting the bank’s view that growth in Canada is becoming more broadly-based and self-sustaining,” the bank said.

Looking ahead, the bank insisted future rate decisions will not be “predetermined” and will be guided by upcoming economic data releases and financial market developments.

For those who are considering taking advantage of the still low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – August 2017

Market sees modest inventory gains, but overall prices inch up.

City of Calgary, August 1, 2017 – Sales exhibited stable growth through the first half of the year in the Calgary housing market, but the number of transactions slowed slightly in July compared to last year.

“Modest improvements in the labour market and net migration were necessary to support the turnaround in the housing market,” said CREB® chief economist Ann-Marie Lurie. “However, current inventory levels and changes in the lending market continue to weigh on housing demand. Easing demand growth combined with elevated levels of supply will slow the pace of price recovery in our market.”

City-wide sales totaled 1,637 units, six per cent below July 2016 levels. Year-to-date sales activity totaled 11,957 units, nine per cent above last year. Easing sales were met with higher new listings, causing further gains in inventory levels. City-wide months of supply rose to four months, as inventory levels reached 6,675 units this month. This is 17 per cent higher than last year, but still below July highs recorded in 2008.

In all market segments except for the MD of Rockyview the absorption rate dropped during the month of July.

This is normal during the summer season but as we ease further into this recovery both buyers and sellers need to be aware of current market conditions.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – July 2017

Stable prices in detached sector signal balanced conditions despite increased inventory.

City of Calgary, July 4, 2017 – Calgary’s housing market in June saw a modest improvement in sales along with an increase in new listings.

However, demand gains have not kept pace with the amount of new listings coming onto the market. This caused inventory levels to increase to 6,659 units, which is 11 per cent higher than last year’s levels.

Despite the recent shift in inventory this month, second quarter activity continues to demonstrate improved supply-demand balance and price stability. City wide benchmark prices totaled $441,500 in June. This is a 0.5 per cent gain over last month and nearly one per cent higher than last year.

“The supply gain this month will be monitored. However, on a quarterly basis, inventory levels remain comparable to last year, sales have improved and there have been modest price gains. All of this remains consistent with expectations of a gradual recovery,” said CREB® chief economist Ann-Marie Lurie.

The condominium market segment continues to suffer. As of June, the unadjusted benchmark price for an apartment style product totaled $265,800. This is nearly four per cent below last year’s levels and 11 per cent below recent highs.

With the exception of the Cochrane Detached market segment, every other reported market segment has seen a reduction in the absorption rate. This is expected during the summer months as the holiday season begins.

The above data further illustrates how differently the market segments perform from one another. Whether you are buying or selling it is vital to know how your market segment is performing and how that affects your transaction.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – June 2017

Demand for detached housing continues to rise

City of Calgary, June 1, 2017 – Fueled by the detached sector, Calgary home prices trended up for the fourth consecutive month, but remain below 2014 highs.

“The economic climate is supporting detached housing market recovery,” said CREB® chief economist Ann-Marie Lurie. “Improved demand and easing supply has created more balanced conditions and ultimately some modest price gains. While it will still take some time for prices to recover, the transition in the detached segment is an important first step to stabilization across all segments of the housing market.”

For the first time since June 2015, prices in the detached sector did not decline on a year-over-year basis. Unadjusted detached benchmark prices reached $509,000 in May, one per cent higher than last month and May 2016 levels.

Against this backdrop, the number of new listings rose to 3,866 units in May, which is 17 per cent higher than last year’s total for the month. Despite this rise, year-to-date new listings have declined by one per cent over last year.

Like the detached market, the attached product has moved towards more balanced conditions. This has supported some recent directional shifts in pricing. However, monthly price declines had fallen by 4.7 per cent over peak levels and year-to-date benchmark prices remain two per cent below last year’s levels.

Apartment-style inventory levels totaled 1,780 in May, 11 per cent higher than last year’s levels and accounting for nearly 30 per cent of city wide inventory. Inventory gains were mostly under $300,000 and occurred across all districts except the North West. Apartment benchmark prices totaled $271,200 in May, 2.9 per cent below, and over 11 per cent below 2014 monthly highs. Apartment price adjustments have varied across the city, with the largest peak to declines occurring in the South East, South and City Centre district. This is likely related to the amount of new condominium construction in these areas.

The above data further illustrates how differently the market segments perform from one another. Whether you are buying or selling it is vital to know how your market segment is performing and how that affects your transaction.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – May 2017

City-wide prices hold steady as labour market improves.

City of Calgary, May 1, 2017 – Calgary’s housing market continued to show signs of stability in April. With improvements in the labour market and a balanced detached sector, city-wide benchmark prices reached $439,600 in April, similar to the previous month, but 0.90 per cent below last year’s levels.

While adjustments are still occurring in the apartment condominium sector, the detached segment of the market is improving across all price segments. “Detached product has not faced the same supply pressure as the apartment sector,” said CREB® chief economist Ann-Marie Lurie. “Detached supply from new construction didn’t surpass previous highs. That helped prevent steeper price adjustments in the detached sector when demand eased.”

“Improvements in the employment situation were necessary to prevent further declines in the housing sector,” said Lurie. “However, economic recovery is still expected to be slow, impacting the pace and quality of job growth. Based on current expectations this should translate into a more prolonged period of recovery in the housing market.”

Months of supply is trending down for all product types, but has remained elevated in the apartment sector, averaging 6.1 in the first quarter of the year compared to the 2.4 average in the detached sector.

For the first time this year the absorption rate for the City of Calgary Detached market segment decreased a little due to increased new listings. The City of Calgary Semi-Detached market segment continued to improve but the Row and Apartment segments absorption rates declined. The Detached market segment in both Airdrie and Cochrane declined but the Detached Okotoks market segment showed a significant improvement. This data shows how the real estate market performs differently in each market segment.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – May 2017

Housing market set for favourable lead into spring 

Detached prices stabilize as city-wide inventory trends down

City of Calgary, April 3, 2017 – After a long period of disconnect between supply and demand, Calgary’s detached housing sector is firmly in balanced territory. Sales were still 10 per cent below long-term trends in March, but above levels seen in recent years, while average inventory declined compared to last year, supporting price stability in the detached market.

Unadjusted detached benchmark prices totaled $503,900 in March, 0.4 per cent above last month and similar to levels recorded last year. Meanwhile, Apartment and attached prices continue to remain well below levels recorded last year.

“Market conditions are quite different in the apartment sector,” said CREB® chief economist Ann-Marie Lurie. “The additional supply coming from the new home sector is not easily reversed and the added competition is continuing to weigh on prices in the higher density sectors of the market.”

Months of supply is trending down for all product types, but has remained elevated in the apartment sector, averaging 6.1 in the first quarter of the year compared to the 2.4 average in the detached sector.

It’s nice to see a continued improvement in the absorption rate in almost every market segment.

The city of Calgary Detached market segment still continues to out-perform all other segments with a whopping 31%! Great to see a return to balanced conditions for the City of Calgary Detached market, which will hopefully lead the way for the other reported market segments.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with lower 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!

Susanita de Diego

Download: Calgary & Area Real Estate Statistics – April 2017