Shifting to Stability
City of Calgary, October 2019
For the third consecutive month, sales activity improved over last year’s figures, and year-over-year new listings and inventories eased. This trend will help support more stability in the housing market.
“Price declines have likely brought some buyers back into the market,” said CREB® chief economist Ann-Marie Lurie, noting improvements in the market continue to be driven by homes priced below $500,000. In the condominium apartment market, sales improved by 16 percent this month. This represents the segment’s best September since 2015. Year-to-date growth in both the attached and apartment sector were enough to offset the modest decline in the detached sector resulting in year-to-date sales growth of nearly one percent in the city. Despite improving sales and reductions in inventory, the overall market remains oversupplied. This continues to weigh on prices.
“While housing demand is modestly improving, sales activity remains relatively weak,” said Lurie. “The market is moving toward more stable conditions, but this is mostly related to supply adjustments in the city.” September inventory levels are still elevated at 6,889 units, but this figure represents a decline of 13 percent compared to last year. The months of supply in the Calgary market currently sits at five months. These conditions continue to favour the buyer, but not to the same degree seen at this time last year. September’s citywide unadjusted benchmark price of $424,900 is two percent lower than last year’s levels.
Housing Market Facts
Detached
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Improvements in sales over the past three months were not enough to offset pullbacks that occurred earlier in the year, as year-to-date sales remain nearly one percent lower than last year’s levels. Despite citywide declines, sales improved in both the North West and South districts, thanks to significant gains in sales of homes priced below $500,000.
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The months of supply remains elevated at over four months, although this is an improvement compared to the same time last year.
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Benchmark prices in September ranged from a year-over-year decline of more than four percent in the South district to general stability in the North East, North and West districts.
Apartment
- Sales improved by 16 percent this month, making it the best September recorded in the past three years. Despite recent improvements in sales, year-to-date levels remain stable compared to last year, but well below longer-term trends.
- Condominium apartment sales were varied across the city. Significant growth was reported in the North and South East districts. Both districts have seen significant new-home development which could be influencing resale activity.
- Oversupply continues to weigh on prices in this segment, as unadjusted prices remain 17 percent below 2014 highs.
Attached
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Sales increases for both semi-detached and row product have improved year-to-date attached sales by more than five percent compared to last year. It is the only product type that has recorded significant gains year-over-year.
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New listings continue to ease, reducing inventory and the months of supply.
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Despite some annual reductions in the months of supply, buyers’ market conditions persist and prices continue to ease. Year-to-date benchmark price declines ranged from a high of nearly six percent in the City Centre to a low of three percent in the North East.
Download the Full Report Here: September 2019 Real Estate Statistics
