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
