July 6, 2019

Calgary Real Estate Market Update - July 2019

Oversupply is Easing, but a Buyers’ Market Still Exists in Calgary

The decline of new listings continued throughout June, helping to ease the oversupply of homes for sale in Calgary.

New listings year-over-year experienced a decline of almost 19% with sales slowing in June by 6% compared to 2018. The easing of new listings caused inventories to decrease by 13% compared to the elevated levels of 2018.

Ann-Marie Lurie, CREB® chief economist said, “This year so far, the housing market is acting as we expected. Sales are just below 2018 levels, and with prices softening, supply is beginning to adjust to fewer sales.”

“However, homes priced below $500,000 are the only ones that seem to be moving towards a more balanced situation.”

Calgary has 4.3 months of supply, so it is still a buyers’ market even though oversupply conditions have softened, slowing down the decline in prices. The benchmark for prices was $425,700 in June, almost 4% lower than 2018 levels and comparable to the unadjusted prices in May.

UPDATES IN THE HOUSING MARKET

Detached Homes

·  June sales of detached homes went down 9% compared to 2018, which caused sales year-to-date to soften by almost 3%. Declining sales occurred mostly in homes listed for more than $500,000.

·  Sales of detached homes listed below $500,000 showed improvement, which helped to reduce the oversupply. The tightening in this sector of the market will hopefully begin to encourage a price growth in detached homes.

·  Despite sales declines across Calgary, sales did increase in the North West and South districts. While sales did soften in other districts, the supply-to-demand ratios in the East and North East, which tend to be where the most affordable housing is, improved over 2018. This is moving those districts towards a more balanced situation.

·  Despite sluggish sales, inventory went down by almost 18%, with the reduction occurring in all districts.

·  The past several months has seen relatively stable prices, with some slight monthly increases. But the oversupply situation has left prices almost 4% lower than 2018 levels.

Condominiums & Apartments

·  Sales of condos and apartments softened in June, with sales year-to-date at 1,292 units. This is more than 7% lower than levels in 2018. During June, new listings softened by more than 15%, which lowered the resale inventory in this sector.

·  While inventory levels are in decline, months of oversupply are still high at 6.8 months. High inventory levels in the competing new-home and rental markets continues to dampen prices in the resale market. 

·  The benchmark price in June was $250,200, which is 3% lower than 2018 levels. This has resulted in a price adjustment of more than 17% since 2014.

 

Attached Homes

·  As opposed to other types of property, sales of attached homes continued to increase in June. Sales year-to-date came to 1,955 units, which is almost 3% higher than 2018. This increase was prompted by a higher demand for semi-detached homes. Sales of attached homes increased in almost all districts, but not in the West and North West.

·  Compared to 2018 levels, new listings have softened. This is beginning to lower the oversupply in this market. As with all other sectors, oversupply continues to be a problem when it comes to prices.

·  Benchmark prices in June for semi-detached homes were $399,700 and for row houses it was $286,300. Year-over-year, this represents respective declines of 3.3% and 5.4%.

 

REGIONAL MARKET UPDATES

Airdrie

·  Sales are relatively stable now that we’ve entered the second half of 2019. There has been a decline in new listings, which helps in lowering the inventory level and move the market to a more balanced situation.

·  While the market is becoming more balanced, oversupply continues to dampen prices. In June the benchmark price came to $334,800, which compares to May, but it is still almost 3% lower than 2018 levels.

Cochrane

·  Sales have been relatively stable in Cochrane, compared to 2018 and in line with longer-term trends. There has been a softening of new listings, which helps reduce inventory levels as well as the oversupply.

·  Despite recent adjustments, it is still a buyers’ market, which dampens prices. The benchmark price in June came to $404,000, much like May and more than 5% lower than 2018 levels.

Okotoks

·  Compared to 2018, sales have stayed relatively stable, but remain lower than longer-term averages. As new listings continue to adjust, inventory levels go down and this helps the market move forward to a more balanced situation.

·  As market conditions become more balanced, this should result in more stable prices. Benchmark prices in June came to $414,900, which is 1.6% higher than in May, but still 4.1% lower than 2018 levels.

 

 

 

 

Posted in Market Update
June 6, 2019

Calgary Real Estate Market Update - June 2019

Sales Growth & Fewer New Listings in May Led to Decline in Inventory Levels

Last month’s growth in sales, combined with fewer new listings led to a softening of inventory levels, resulting in 7,467 units at the end of May. This represents a 12% decline compared to 2018.

Growing sales softened the months of oversupply to slightly under 4 months. While Calgary is still in an oversupplied situation, this represents an improvement over May 2018, which had 5 months of supply.

Sales across the city in May came to 1,921 units, which is 11% higher than this time last year. Unfortunately, this is still 10% lower than long-term trends. Homes priced below $500,000 largely drove the surge in sales.

Ann-Marie Lurie, CREB® chief economist said, “Sales activity is still low based on historical norms for May. With prices softening, people are gradually returning to the market. At the same time, others continue to delay listing their homes.”

“This is pushing the market to become more balanced. If the trend persists, it could relieve some of the pressure to lower prices.”

Benchmark prices across the city in May were $423,100. Although prices are signaling improvement month-over-month, they are still 4% below 2018 levels.

 

UPDATES IN THE HOUSING MARKET

Detached Homes

·  Sales of detached homes in May came to 1,182 units. This represents a 12% increase over May 2018, while still 13% lower than long-term averages. The increase in sales was predominately the result of gains in detached homes priced below $500,000.

·  May experienced an increase in sales across most districts. But, year-to-date sales showed an increase in just the East, North East and South districts. Citywide sales are still 1% below 2018 levels.

·  New listings in May were significantly lower than in previous years. When you combine that with the increase in sales, the result is inventories going down from 4,504 units in May 2018 to 3,921 in May of this year. The last time year-over-year inventories went down was in May 2017.

·  Softening inventory combined with increased sales led months of oversupply to soften to 3.3 months. Historically, this is still considered elevated, but it does indicate some improvement from last year.

·  Over the last few months prices seem to have stabilized, with some slight improvements. But, the oversupply situation leaves prices 4% below 2018 and 7% below 2014 highs.

 

Condominiums & Apartments

·  The increase in monthly sales failed to offset the previous declines. Sales of condos and apartments year-to-date remain at 1,030 units. This figure is 7% below 2018 and 28% below long-term averages. Softening sales combined with fewer new listings resulted in a reduction in market inventory. This increased months of oversupply to just over 5 months.

·  If the oversupply situation continues to go down, it should at some point put a lid on price declines. In the meantime, this market is still oversupplied, which means prices will continue going down.

·  Benchmark prices in may came to $246,900, which is 0.6% below last month and almost 3% below 2018 levels. The result is a total adjustment in prices of more than 17% since 2014.

Attached Homes

·  Sales of attached homes continued increasing in May. Sales year-to-date increased by 2%, which makes this the one sector in Calgary to show a year-to-date increase. These increases occurred in most districts, except for the West, North West and City Centre.

·  The city experienced a softening of new listings compared to sales activity. This led to an lowering of inventory levels compared to 2017, as well as a softening in months of oversupply.

·  Benchmark prices for May are still 5% below 2018 levels, but slight gains are appearing month-to-month. Despite signs of improvement, prices are still 10% below 2014 highs.


REGIONAL MARKET UPDATES

Airdrie

·  Sales activity for May was pretty much the same as 2018, resulting in 514 units sold year-to-date. This is a bit higher than 2018. However, Airdrie has been experiencing a steep decline in new listings at the very same time. The result is declining inventories, which should lead to a more balanced market.

·  Despite a bit of a reduction in oversupply, prices continued the struggle to improve after the declines of 2018. Benchmark prices in Airdrie in May were $331,900, which is much like April, but almost 4% lower than 2018.

Cochrane

·  Sales activity year-to-date in Cochrane is still a bit lower than 2018, but higher than sales throughout the recession. There continues to be a softening of new listings, which has been reducing inventory levels from the highs of 2018.

·  Cochrane is starting to experience supply adjustments in this market, while conditions still favour buyers, which weighs prices down. Benchmark prices in May came to $404,700, a little lower than April’s and more than 4% less than 2018 levels.

Okotoks

·  Sales year-to-date in Okotoks are at 208 units, which compares to 2018 levels, but below long-term averages. As in many other areas of Calgary, new listings are still softening, which is lowering inventory levels. The result is months of oversupply falling below 4 months.

·  This oversupply reduction compared to sales is limiting the pressure on prices. Benchmark prices for May came to $408,200 and are still 5% below 2018 levels.

 

 

Posted in Market Update
May 7, 2019

Calgary Real Estate Market Update - May 2019

April Brought No Significant Changes in Citywide Sales Activity

No major changes in sales activity occurred this past month, however, the number of new listings does continue to decline when compared to 2018 levels.

This decline has been sufficient enough to chip away at inventory levels overall, which have softened a bit when compared to 2018 levels.

This small adjustment in levels of supply has brought about a further lowering in months of oversupply, which in April was 4.6 months. Although this still indicates oversupply in the Calgary market, this reduction does show improvement from the nearly 7 months of oversupply seen at the beginning of the year.

Ann-Marie Lurie, chief economist for CREB® said, “Demand continues to be fairly weak in the resale housing market. But, if the reduction in supply levels persists, this could lower the amount of oversupply, which in time could create a degree of price stability.”

The total benchmark price for residential homes was $415,900 as of April in Calgary. This is a bit higher than in March, but still almost 5% below last year’s benchmark price at this time.

Sales were at 1.557 across the city in April, which was 2% higher than 2918 levels. Sales levels year-to-date remain almost 6% below last year and are 26% lower than longer-term averages.

Lurie added, “Sales have been going up primarily for the lower-priced homes, which means tighter supply in that segment. This trend will probably affect lower priced homes differently, depending on location.”


UPDATES IN THE HOUSING MARKET

Detached Homes

·  Sales of detached homes increased by almost 3% in April compared to 2018, due to gains made in homes listed for less than $500,000. But, with just 930 in sales, activity remains 24% lower than long-term averages. Gains made recently were not enough to counter pullbacks that occurred earlier this year. This caused sales year-to-date to fall by more than 5%.

·  Sales did not improve in all districts. In April, growth occurred in the South, South East, North West, and North East districts. Despite some signals that sales are improving, overall activity remains much lower than 10-year averages clear through every region of the city.

·  Inventories of detached homes citywide in April remain slightly higher than recorded levels last year. Months of oversupply are basically the same at 4 months.

·  The degree of oversupply varied a great deal depending on the area. Months of supply rose in the West, South, and City Centre districts only.

·  Despite the adjustments among detached homes, overall prices in April remain below last year’s levels in all districts. The largest declines year-over-year occurred in the South, North West, and City Centre year to date.

Condominiums & Apartments

·  Despite being affordable, sales activity of apartments and condos continues to decline in most districts of the city. So far this year there have only been 714 apartment condos sold, which is the lowest number since 2001.

·  Declines of new listings have begun to surpass the declines in sales, causing inventories to soften. As of April, inventories of resale apartment condos came to 1,546 units, which is 16% below inventory levels in April 2018.

·  The softening of inventory levels has also led to a decline in months of oversupply to just over 6 months. This still continues to be a buyers’ market, however, this trend could soften the lowering of prices if it persists.

·  Prices in April of apartment condos came to $250,400, which is comparable to March, but more than 2% lower than 2018 levels and almost 17% lower than 2014 highs.

Attached Homes

·  Sales activity for attached homes increased compared to 2018 levels and this is for the second month in a row, which nearly counters the declines that happened in January and February. Sales year-to-date came to 1,113 units, almost 1% lower than last year and 14% lower than long-term averages.

·  Sales year-to-date have gone up in all districts except the West, North West, and City Centre.

·  Increased sales and softening listings have prevented further gains in inventory levels in this sector. Months of supply have now gone down to 5 months.

·  Following price declines over several months; benchmark prices for semi-detached homes in April went up over March prices. But, prices are still more than 5% lower than last year’s benchmark price levels at $395,300.

·  Row prices in April were $284,900, which is more than 5% lower than last year’s levels.


REGIONAL MARKET UPDATES

Airdrie

·  Sales were stronger in March and April, which countered earlier declines helping year-to-date sales to come to 363 units, which is similar to recorded sales in 2018. A decline in new listings persists, causing inventory levels in April to soften compared to 2018. Months of oversupply remain high at 5 months, but this is a nice improvement compared to 2018 when months of oversupply were more than 6 months.

·  With sales rising and inventories softening, further declines in price were prevented in April when compared to March. But, April prices for the most part remained almost 4% lower than levels last year. Prices have softened among all types of property, with the largest decline year-to-date in the apartment condo sector, at 8%.

Cochrane

·  Despite increasing sales in April, sales in Cochrane year-to-date softened by 6% when compared to 2018. But, there has been a softening of new listings as well, which lowers the inventory in this market. Although inventory levels and months of oversupply are still high, it’s the first time since June of last year that the months of oversupply fell below 6 months.

·  The improvement in oversupply has probably prevented additional monthly price declines. Benchmark prices in April remained more than 3% lower than last year’s prices, totaling $415,100.

Okotoks

·  Despite recent increases in sales, activity year-to-date slowed down compared to 2018. There has also been a softening of new listing, but not enough to prevent additional gains in inventory levels, so months of oversupply remain above 5 months.

·  This persistent oversupply has affected prices. Residential prices in April came to $406,700, which is almost 4% lower than 2018 levels. Declines in prices were a bit higher among attached homes, with a decline year-over-year of almost 5%.

 

 

Posted in Market Update
April 5, 2019

Calgary Real Estate Market Update - April 2019

Increased Sales for Affordable Housing Has Not Reduced Oversupply

Overall, there was a slight decline in sales activity across the city in March, compared to 2018. However, sales have increased for the more affordable attached and detached homes.

Shifts occurring at the lower end of the housing market have not been enough to outweigh the softening that is occurring in higher priced homes. First-quarter sales plunged to 3,108 units, which is 9% lower than last year and 28% lower than usual activity levels.

Declines in prices and slower sales activity are affecting how many new listings come on the market. This is the second month in a row that new listings softened compared to 2018 levels and trends long-term. But, this level of softening was not enough to avoid an inventory growth.

Ann-Marie Lurie, CREB® chief economist said, “If the number of new listings continues to be relatively low compared to sales, there could be an improvement in the oversupply situation that is putting a damper the housing market.”

“Because the inventory is still so high, it will be some time before our market returns to a more balanced situation that includes more stable pricing.”

With 6,695 units still available in March, the number of months of oversupply softened to five months. While this reflects an improvement over the last few months, we continue to have an oversupply situation when compared to March levels recorded over the years.

This level of oversupply in Calgary has led to further price declines. Benchmark prices in March softened to $413,900, which is 5% lower than 2018 levels and slightly lower than last month’s recorded levels.

 

UPDATES IN THE HOUSING MARKET

Detached

·  The decline in first-quarter sales was almost 9% compared to 2018 and 30% lower than the usual sales activity.

·  Sales of detached homes are varied, depending on price range and location. We’ve seen gains among the most affordable homes in each district.

·  Across the city in March, sales of detached homes improved for those priced below $500,000

·  Despite the softening of new listings, there was an increase in inventories over 2018, which pushed the months of oversupply to the highest level that has ever been recorded for March. When looking at sales activity by district, the East and North East districts have experienced a softening compared to 2018.

·  Oversupply of detached homes continues to dampen prices in all districts across the city with benchmark prices softening 5.4% compared to 2018, bringing the benchmark price to $475.800.

   Condominiums & Apartments

·  Sales of resale condominiums dropped by 14% in March, which caused first-quarter sales to come to 464 units, which is 17% lower than 2018. This decline didn’t happen in every district because there was an increase in sales activity in the West and North districts. Despite these signs of improvement in these districts, overall sales activity is still much lower than long-term trends.

·  Supply of condominiums and apartments is showing signs that it is adjusting to lower demand. There was a softening of new listings in March compared to 2018. Unlike other types of properties, this is affecting inventory levels. March inventory was at 1,488 units, which is 12% lower than 2018 levels.

·  The number of months of oversupply has moved down from earlier this year, but since sales have been weak, it is still higher than 2018 levels.

·  Condominium and apartment prices across the city dropped 0.7% from February and 2.6% over 2018. However, in the South East and North East districts, prices recorded a slight gain over 2018.

 Attached Homes

·  March experienced a slight increase in attached sales due to improvements in the row and semi-detached sectors. While there were gains in March, sales year-to-date are still 4% lower than 2018 levels and 16% lower than long-term averages.

·  There has been a softening in year-to-date sales, but things have improved in the South East and South districts.

·  Months of oversupply remain high citywide, despite some increased sales activity.

·  Prices kept going down for semi-detached homes with a benchmark price of $391,000 in March. This is almost 6% lower than 2018 levels and 0.4% lower than the prior month. However, things were different in the North district as months of supply has been tightening, supporting a slight price gain compared to the prior month and 2018.

·  Row prices for the Month of March were still pretty flat compared to the prior month, but are still more than 4% lower than 2018 levels and more than 13% below previous highs.

 

REGIONAL MARKET UPDATES                                    

Airdrie

·  Sales in the first quarter were 7 units below 2018 levels. There was also a first quarter decline in the number of new listings of 47 units, so there was no significant change in the market when it came to inventory levels. The months of oversupply stayed elevated and averaged 5 months at the end of the first quarter.

·  The continuing oversupply has a negative effect on prices. Benchmark prices across the city in the first quarter softened by 1.7% compared to the prior quarter and continue to be 4.6% lower than first quarter levels in 2018. Although prices softened across all types of property, the steepest declines were in the condominium and apartment sector.

 Cochrane

·  First quarter sales in Cochrane were 114 units and new listings came to 330 units. For both these numbers marked a decline over 2018 levels. The fairly steep pullback in sales resulted in a rise in inventories with months of oversupply reaching 8 months.

·  Continuing oversupply in the housing market has dampened prices. Benchmark prices softened by 1.6% after the first quarter compared to 2018 and 1.5% compared to the prior quarter. The attached sector experienced year-over-year declines of 2.7% compared to 1.5% in the detached sector.

 Okotoks

·  Sales and new listings both slowed down in the first quarter compared to 2018. However, the slowing of new listings was not drastic enough to lower inventory levels. Months of oversupply continued elevated at an average of 7.7 months this first quarter.

·  The continual oversupply has affected prices. Benchmark prices for detached homes averaged $413,733 this first quarter, which is a 4.8% decline compared to 2018 and 3.8% lower than the prior quarter. Price declines of attached homes were a little higher with benchmark prices coming to $376,433 in the first quarter, which is 5% lower than 2018.

 

 

 

Posted in Market Update
March 4, 2019

Housing Market Still Chilly Due to Persistent Oversupply

Calgary’s weak economy continues to contribute to soft sales in a housing market with elevated inventory.

The result of this is certainly reflected in prices.

“The ongoing slow down in home sales continuing into February is no surprise,” said Ann Marie Lurie, CREB® chief economist.

“Since the economic climate has not changed in any demonstrable way people working in the energy sector are concerned about job security and this affects confidence.”

February benchmark prices across Calgary were at $414,400. This figure is almost 5% below January 2018 figures, slightly below the prior month’s and more than 10% below 2014 highs.

Although the housing market in Calgary is still oversupplied, softening sales and declining prices are apparently having an influence on sellers. February experienced an 8% decline in new listings compared to February 2018, which numbered just 2,211 units.

UPDATES IN THE HOUSING MARKET

Detached Homes

·  At the end of February, sales of detached homes for the first two months of 2019 totaled 1,079 units, which is 13% lower than this time last year and 30% lower than long-term averages. Home sales softened across almost all districts of the city, but not the North West. Sales activity stayed far below the usual levels in all districts.

·  New listings across Calgary ranged from an increase of 15% in the North West to a 23% decline in the North district. New listings year-to-date came in at 2,544 units, which is almost 2% lower than last year.

·  Despite those new listing adjustments, detached sector inventories saw a rise on average of 25% compared to 2018 levels. However, looking at the more affordable areas for detached homes, including the East and North East districts, we saw a decline in inventory levels compared to 2018.

·  With months of inventory in the detached sector staying above 5 months, prices keep trending lower. Benchmark prices across the city in February were $475,600, which is 0.2% lower than January prices and more than 5% below February 2018 levels.

Condominiums & Apartments

·  Even though condominiums and apartments are relatively affordable, sales continued to be slow at just 149 units.

·  Unlike what’s happening with detached homes, with 7 years in a row of new listing declines, the impact is starting to affect inventory levels.

·  Inventory levels came to 1,301 units in February, which is 9% lower than last year’s levels. Inventories did soften, but February’s slow sales meant that the months of oversupply remained near 9 months.

·  Benchmark prices in February for condominiums and apartments were at $252,300, which represents a 1.7% decline from last year’s prices, even though they were similar to last month’s figures. Prices for condominiums and apartments have fallen by 16% over the highs of prior months.

·  Benchmark prices across Calgary have softened, but certain districts have had modest gains, but not enough to eliminate prior declines. However, this is an indication that prices may be moving towards more stability in certain areas.

Attached Homes

·  Things remained pretty much the same in the attached homes sector, with months of inventory staying nearly 7 months and prices remaining constant compared to January, yet still 4% lower than prices last year at this time.

·  Just as with condominiums and apartments, activity can fluctuate dramatically depending on the location. Semi-detached benchmark prices softened by more than 5% compared to 2018, with the largest declines in the City Centre and South districts.

·  The North district experienced a slight improvement in prices.

·  Row prices were down by almost 4% from last year’s levels. Unlike semi-detached home prices, row prices softened across the entire city compared to 2018 and are still almost 14% lower than monthly highs.

REGIONAL MARKET UPDATES

Airdrie

·  Total sales are 150 units so far this year in Airdrie, which is 27 units lower than recorded levels at the same time in 2018. However, these numbers compare to the average amount of activity over the past decade.

·  Although the number of new listings is soft compared to last year, inventory levels have gone up to 448 units. With more inventory and lower sales, months of oversupply continue to be elevated at 5 months.

·  Prices for detached homes in February came to $355,200, which is more than 4% lower than this time last year.

Cochrane

·  Residential sales year-to-date compare to 2018 levels due to the gains made in sales of detached homes, for the most part.

·  New listings in the first 2 months compared to the same time last year, however, inventory levels did go up. The months of oversupply stayed just under 7 months.

·  Due to the oversupply, prices year-to-date went down compared to 2018. Year-over-year, benchmark prices in February were $413,300, which was 1.3% below 2018 prices.

Okotoks

·  Sales in January and February 2019 were 30 units below this time in 2018. New listings also softened compared to 2018, which caused inventory levels to go up and months of oversupply to stay elevated at 10 months.

·  Continual oversupply keeps weighing down benchmark prices with February prices at $411,500, representing a 1.3% decline from last month and a 4.6% decline over this same time last year.

 

 

 

Posted in Market Update
Feb. 5, 2019

Calgary Real Estate Market Update - February 2019

January Kicks Off 2019 with Sluggish Home Sales

The economic challenges of 2019 continue into the New Year with Calgary’s housing market still moving at a snail’s pace.

Home sales in January reached only 804 units, which is 16% lower than January 2018 and 21% lower than the long-term January averages.

New listings just coming on the market were comparable in number to 2018, however, those far outnumbered sales. This just added to inventory levels, which led the months of oversupply to reach almost seven months. 

The buyers’ market still persists and is definitely affecting prices. Residential benchmark prices across the city in January softened to $414,800, which is 1% below December figures and 4% lower than January 2018.

 

UPDATES IN THE HOUSING MARKET

Detached Homes

·  Sales of detached homes in Calgary softened by 17% compared to 2018 figures. But, declines were not seen in all districts, with the North East and North West districts showing an improvement in sales activity. The West and North districts experienced the most substantial declines in sales.

·  The number of new listings rose in all districts, with the exception of the South East, North East and North districts. The North East was the only district that recorded a softening in months of oversupply when compared to 2018.

·  Benchmark prices for detached homes came to $476,500, which is a 1% decline from December and more than 4% below January 2018 figures.

·  Prices softened across all of Calgary, with the highest year-over-year declines being seen in the City Centre, North West and South districts.

Condominiums & Apartments

·  The total number of apartments sold in January was 126 units, which is 14% lower than January 2018 and more than 20% lower than long-term January averages.

·  With slower than average sales and fewer new listings, inventory levels softened. Inventory is currently at 1,173 units in Calgary, which is 9% below January 2018.

·  Despite the inventory level adjustment, months of oversupply were at nine months, which has affected prices. Although prices stayed fairly flat compared to December, they went down by 2% when you compare them to January 2018 prices.

·  Prices for condominiums and apartments are still much lower than previous highs, however, in the South East and North East districts, there were some improvements in price compared to 2018.

Attached Homes

·  In January, row and semi-detached homes both experienced a decline in sales. The number of new listings rose at the same time, leading to higher inventory levels for both types of homes.

·  Buyers’ market conditions continue in the attached home sector with prices softening by more than 4% and a benchmark price for attached homes in January of $313,700.

·  Prices for semi-detached homes softened by almost 5% compared to 2018, totalling $393,100. The South and City Centre districts experienced the steepest declines in price, with adjustments of more than 6%.

·  Prices for row homes declined by 4% compared to 2018, totalling $284,300. There were price declines across all districts, but the City Centre experienced the sharpest price declines, with prices almost 8% below last year’s levels. 

 

REGIONAL MARKET UPDATES

 

Airdrie

·  Total sales in January 2019 came to 65 units in Airdrie. This is slightly lower than 2018 sales levels, but comparable to sales activity averages over the last decade.

·  Despite a softening in the number of new listings when compared to January 2018, there was an increase in inventory levels, which brought it up to 422 units. The sales activity combined with higher inventory levels led to the months of oversupply to stay elevated at 6.5 months. The continuing oversupply compared to demand has led to a softening of prices.

·  Prices for detached homes in January came to $354.300, which is 0.5% lower than December’s price and almost 5% below prices in January of last year.

Cochrane

·  Due to Row sales pulling back, sales in January slowed down when compared to 2018 as well as longer-term figures. While this was happening, new listings softened, which led to gains in inventory and the months of oversupply rising to almost 14 months.

·  Because the market is oversupplied, prices are trending down compared to December’s figures. But, when you look at detached benchmark prices year-over-year, the $408,600 price was fairly stable when compared to price levels in January 2018.

 

Okotoks

·  January sales activity in Okotoks was down compared to January 2018. Although the number of new listings that came on the market in January also declined from 2018 levels, the number of new listing far exceeded the number of sales, which led to a rise in inventories and months of oversupply to continue above 10 months.

·  With the problem of continuous oversupply, benchmark prices remain lower having declined for the third consecutive month. Prices for detached homes in January came to $416,900. This is 1% below last month’s benchmark prices and 3% lower than in January 2018.

 

 

 

Posted in Market Update
Jan. 7, 2019

Calgary Real Estate Market Update - January 2019

Oversupply Continues to Affect the Housing Market in Calgary

 

Home prices in Calgary were down 1% in December compared to November and are more than 3% below December 2017, due to the ongoing oversupply.

Sales came to a total of 794 units in December, which is a stark 21% decline over December figures last year. Year-to-date home sales in Calgary were 16,144 units. This represents a 14% decline from 2017 and an almost 20% decline when you look at long-term averages.

The number of units in December’s inventory was 4,904, which is much higher than last year at this time and 30% higher than levels typically seen in December. Higher resale inventories last year resulted from gains in the sale of detached and attached homes.

The months of oversupply stayed elevated during all of 2018, averaging 5.2 months. This was a contributing factor on the annual average decline in the benchmark price of 1.5%. Sales figures throughout Calgary to remain more than 9% lower than the recorded monthly highs of 2014 due to price declines across all types of housing.

Tom Westcott, president of CREB® said, “Anyone buying or selling a home in Calgary this past year had to adjust his or her expectations. Sellers had to face the fact that the resale market offered more choice, plus they had to compete with the new-home market.”

 

UPDATES IN THE HOUSING MARKET

Detached Homes

·  Sales of detached homes declined throughout Calgary in 2018, with a total of 9,945 units being sold. This level of activity is 21% below what would be typical for the year.

·  Inventories of detached homes remained higher than 2017 levels and this was the reality every single month of 2018, including December. A slowdown in sales resulted in the oversupply in the market throughout the year.

·  Benchmark prices in December for detached homes came to $481,400, which was 1% lower than in November and 3% lower than in 2017. Overall, prices declined in 2018 by 1.5% when compared to 2017. 

·  Detached home prices in 2018 have softened in most districts with the largest declines occurring in the North, North East and North West districts.

 Condominiums & Apartments

·  Sales of condominiums and apartments in 2018 came to a total of 2,663 units. Although the decline is not as steep as other types of housing experienced, levels are still 22% lower than long-term averages.

·  Sales in this sector have been hampered with oversupply for nearly three years and this situation continued in 2018.

·  However, the oversupply situation has been letting up since 2018 inventories averaged 1,584 units, which is 1% lower than 2017 levels.

·  While supply growth slowed down, the market continued to be oversupplied, which led to further declines in price. Benchmark prices for condominiums and apartments were $251,500 in December, which was more than 2% lower than in 2017. Annually, we saw a decline of nearly 3%, contributing to a total decline in prices of 14% since 2014.

·  Price declines in 2018 have gone from a high of almost 6% in the East district down to a 2% low in the North West and City Centre districts.

 Attached Homes

·  There were declines in sales for row as well as semi-detached homes, which resulted in sales of attached homes totalling 3,536 units in 2018. This represents a decline of 15% over 2017 and was 14% lower than long-term averages.

·  Due to the slowdown in sales activities, there were fewer new listings, however, this affected the row sector only. New listings for row homes declined by 4% and new listings for semi-detached homes were up by almost 15% in 2018.

·  Despite some new listing adjustments, inventory continued to be elevated, which means it remained a buyers’ market and that means prices being pressed downward.

·  The benchmark price for semi-detached homes in December came to $397,500. This represents a monthly decline of 0.8% and a year-over-year decline of 3.8%. Due to recent price declines, the gains made in this sector last year have been eliminated with 2018 prices slightly lower than 2017 levels. At the end of the year, 2018 prices were 1.4% lower than peak levels in 2014.

·  Prices for row homes are continuing to soften. Row prices in December were $288,400, which is a 1.5% decline from November and almost 4% lower than 2017 levels. At the end of the year, 2018 prices were 2% lower than 2017 levels and almost 10% lower than previous highs.

 

REGIONAL MARKET UPDATES

Airdrie

·  The housing market in Airdrie throughout 2018 suffered from oversupply and indications of a buyers’ market. Compared to 2017, inventory levels and the number of months of oversupply have been much higher. When you combine this with fewer sales the result was a lower benchmark price when it came to detached homes.

·  Annual sales of residential homes experienced a 14% year-over-year decline and were nearly 19% lower than sales over the previous 5 years. This continuous decline affected all types of homes.

·  2018 experienced record highs when it came to supply levels. The number of new listings marked a new peak year-to-date for most of 2018. Inventories continued to increase throughout 2018 and are 12% higher than was seen in 2017. The number of months of oversupply went up steadily, averaging 5.6 months for the year.

·  This continuous oversupply situation has caused Airdrie home prices to decline. Benchmark prices for detached homes in 2018 averaged $369,042, which was more than 2% lower than in 2017.

 Cochrane

·  2018 home sales in Cochrane declined by 64 units, which was below 2017 levels. But, yearly sales of 599 units is comparable to sales activity over the previous 3 years.

·  Cochrane experienced 1,288 new listings in 2018, which was a record high. More new listings and softening sales caused a rise in inventory levels and months of oversupply averaging almost 7 months.

·  Higher supply levels has led to prices of detached homes to move down during the last two quarters of 2018, but not enough to offset gains made earlier in the year. Benchmark prices for detached homes in 2018 have remained comparable to 2017.

 Okotoks

·  Residential home sales in 2018 in Okotoks totalled 463 units, which represents a decline over 2017 and actually compares to 2010 sales. 

·  New listing gains, along with a slowdown in sales cause inventory levels to rise, which means an oversupply in the market.

·  Despite the oversupply and soft sales, prices for detached homes in Okotoks showed slight increases in 2018. The average benchmark price for detached homes came to $434, 875, a 1% increase over 2017.

 

 

 

Posted in Market Update
Dec. 6, 2018

Calgary Real Estate Market Update - December 2018

Challenging Economy Continues to Affect the Resale Market

Sales in Calgary for November came to 1,171 units, which is lower than long-term averages.

So far this year sales have reached 15,349 units, which is a 14% decline over 2017 figures and nearly 20% lower than long-term averages.

Ann-Marie Lurie, CREB® chief economist said, “Consumer confidence has waned over the last month due to the challenges facing the energy sector. When you combine that with weak employment and lending rates that continue to grow, it’s not surprising that ownership demand has softened.”

New listings in November eased by 7% compared to this time last year. The downturn in new listings does help to prevent further gains in inventory. There are currently 6,501 total units in inventory, however this is far more than the 5,683 units that were in inventory at this time last year and 32% higher than normal levels for the month of November.

Lurie added, “With more supply and weaker sales a buyer’s market continues in Calgary, which just causes prices to decline even more.”

In November the benchmark price across the city was $422,600, which is almost 1% lower than October’s and more than 3% lower than last year at this time.

Sales have slowed in all price ranges year-to-date, except for homes priced under $200,000, which currently makes up 6% of all sales. The largest sales decline is being experienced in the $600,000 to $999,999 price range.

Tom Westcott, CREB® president said, “In any market, you need an affordable product if you expect steady sales.”

He added, “The good news is that buyers may be able to buy a home that they could never have imagined affording in the past. Sellers must stay up-to-date on what is actually selling, in their own neighbourhood as well as in surrounding areas.”

UPDATES IN THE HOUSING MARKET

Detached Homes

·  Sales for detached homes in November were down across all districts. Sales in all of Calgary were 679 units, a 21% decrease in activity compared to a typical November.

·  The number of new listings went down 3% when compared to this time last year. Declines in the North, North East and South East districts were what pulled the figures down for the most part. New listings year-to-date in 2018 have gone up in all districts, except the East and North East.

·  The detached home sector inventories totalled 3,491, which is 26% higher than 2018 levels at this time. There has been five months of supply at this point, far more than the three-month usual for the month of November.

·  Benchmark prices in November for detached homes came to $486,000, which is 1% less than October’s figures and 3% lower than this time in 2017. This comes to almost 7% lower than the monthly highs on record for October 2014. 

·  The detached home sector inventories totalled 3,491, which is 26% higher than 2018 levels at this time. There has been five months of supply at this point, far more than the three-month usual for the month of November.

·  Benchmark prices in November for detached homes came to $486,000, which is 1% less than October’s figures and 3% lower than this time in 2017. This comes to almost 7% lower than the monthly highs on record for October 2014. 

·  Prices have softened clear across Calgary in November. Year-to-date, the largest declines have been in the North and North East Districts. This has very likely been caused by the competition created by the new-home sector. The South and North West are the two districts furthest from any kind of price recovery.

Condominiums & Apartments

·  Despite November’s year-over-year gains, condominium and apartment sales citywide have only come to 2,557 units up until now. This is 5% below last year’s figures and 21% lower than long-term averages.

·  Most of the condominium activity is in the City Centre and makes up 48% of all sales.

·  After years of oversupply, new listings for apartments continues to soften, which helps prevent additional large gains in inventory levels and even helps reduce inventories in the East, North East and South districts.

·  Despite some fluctuation in inventory levels, most districts still grapple with oversupply, leading to price declines, which have ranged this year from almost 6% in the East district down to just 2% in both the North West and City Centre districts.

Attached Homes

·  Sales of attached homes came to 3,344 units year-to-date, which is a 16% decline over 2017 and 14% lower than long-term averages. Across most of Calgary there was a softening of sales activity, apart from the North East district where sales continued to be relatively steady due to improved row activity.

·  For the most part, the rise in new listings continues to push inventory levels higher and these gains are mostly in semi-detached homes.

·  The oversupply situation has depressed prices. The benchmark price for semi-detached homes in November came to $400,700. This represents a 0.67% monthly decline and a 3.3% year-over-year decline. Recent declines in price have eliminated any gains that occurred in this sector last year. Year-to-year prices compare closely with figures in 2017.

·  Row prices are also inching down, but not as quickly as the prices of semi-detached homes. Row prices in November were $292,900, which is a 0.2% decline from October and a little more than 3% lower than 2017 levels. For the most part, year-to-date prices are still almost 2% lower than last year’s prices and almost 10% lower than previous highs.

REGIONAL MARKET UPDATE

Airdrie

·  The housing market in Airdrie is still declining in sales, while inventory continues to rise. The perpetual oversupply has caused a decline in benchmark prices for detached homes. 

·  Sales activity so far this year in Airdrie has gone down by 142 units year-over-year, with sales currently at 1,101 units. New listings so far in 2018 compare to 2017, but are still higher than recorded long-term averages.

·  So far this year the average inventory is nearly 18% higher than at this time last year, maintaining the average months of oversupply at approximately six months. The persistent pressure has caused house prices to decline, with the benchmark value year-to-date of detached homes now at $342,773, representing a decline year-over-year of almost 2%.

Cochrane

·  Sales of residential homes in Cochrane year-to-date have gone down 58 units, making the total units sold so far this year 573. These levels compare to other similar times in the past several years and are actually represent an increase in long-term averages.

·  New listings keep on reaching historical highs for each period so far this year. New Listing levels in 2018 so far are 308 units, which actually represents an increase in long-term averages. Average inventory levels so far this year are 14% higher than at the same time last year.

·  Despite recent declines, benchmark prices for detached homes year-to-date have remained steady when you compare them with last year’s prices.  

Okotoks

·  Sales of residential homes year-to-date have declined to just 449 units, which is similar to 2010 levels.

·  New listings are still a bit higher than in 2017. Oversupply continues in Okotoks, with average inventories so far this year at 53 units higher than at this time last year.

·  Despite weak sales and increased supply, prices for detached homes in Okotoks show slight increases. The average benchmark price for detached homes year-to-date came to $436,091, which is 1.5% higher than 2017.

 

 

 

Posted in Market Update
Nov. 5, 2018

Calgary Real Estate Market Update - November 2018

Calgary’s Struggle with Oversupply Causes Home Prices to Soften

Prices are softening in Calgary’s housing market due to an elevated inventory when compared to sales.

Benchmark prices across the city in October came to $426,300, which indicates a downward trend for the fifth straight month. The year-over-year result shows a 2.9% decline. 

Anne-Marie Lurie, chief economist for CREB® said, “Job growth in Calgary is still a worry, as the level of unemployment is still far higher than anyone expected for 2018. The rising cost of home ownership continues to have a detrimental effect on housing demand.”

“Simultaneously, supply levels haven’t adapted quickly enough to these conditions, which has caused prices to soften.”

Inventories totalled 7,345 in October, whereas sales came to just 1,322. The result is months of supply at 5.6, which is not at all typical for October. Although some softening in the growth of new listings will prevent more supply gains, inventory levels for October remained at near record highs for this month of the year. 

Tom Westcott, president of CREB® said, “Under these market conditions, a lot of potential homebuyers should have a good chance of finding the home they want in their price range if the homes are priced right.” He added that, “Sellers need to have realistic expectations and have up-to-date data from the correct sources so that they know what’s selling and what isn’t in their neighbourhood.”

In each property type, sales have improved if you look at homes priced in the lower ranges, which means that most of those segments are in relative balance. However, in the upper price ranges there have been huge gains in supply when compared to demand. This is bound to have a stronger impact on prices in the upper ranges.

UPDATES IN THE HOUSING MARKET

Detached Homes

·  In October sales of detached homes totalled 829 units, indicating an 8.6% decline, which means a 15% year-to-date decline. This shows that detached sales are moving at the slowest level since the late 1990s.

·  Year-to-date, the strongest sales decline was in the $600,000 to $999,999 price range, which reflects a low demand from buyers moving up.

·  For two months in a row now, there has been a softening of new listings, which does prevent additional gains in inventory. However, since this segment is still oversupplied, the downward trend in prices will continue.

·  Benchmark prices in October for detached homes totalled $490,000. This is lower than last month and 3% lower than levels this time last year. Year-to-date, prices are 1% lower than levels this time last year.

·  Year-over-year prices as of October have softened across all districts, but the strongest declines are in the South, South East, North East and North West districts. This is probably the result of the new-home sector creating some competition.

Condominiums & Apartments

·  Year-to-date sales of apartments totalled 2,316 units, which is almost 7% lower than this time last year. New listings have softened by 6%, which does help to lower inventory levels in the market.

·  Despite inventory softening, the months of oversupply remains too high at 7 months.  

·  Year-to-date prices of condominiums and apartments have softened by 2.8% and are still 14% lower than 2014 highs. Prices declined across all districts, with the strongest declines in the South, East and North East districts.

Attached Homes

·  Year-to-date sales of attached homes were at 3,098 in October. This is 15% lower than this time last year and 14% lower than long-term averages.

·  In the meantime, despite the recent slowing in new listings, inventories for October were at the highest level ever recorded.

·  The oversupply is having a detrimental affect on the semi-detached as well as the row sectors. Both have experienced a downward trend in prices over the last 5 months.

·  Year-to-date benchmark prices for the row sector are averaging $298,140, which is almost 2% lower than last year at this time and 9% lower than previous highs. But, prices have stayed relatively flat in the North West and City Centre districts.

·  Prices for semi-detached homes in October were at $403,400, which is 1% below last month and almost 3% below this time last year. Despite recent price declines, year-to-date prices citywide stayed comparatively flat when you consider last year. This was primarily due to the gains in the North East, East and City Centre districts, which offset the declines occurring in the South, South East and North West.

REGIONAL MARKET UPDATE

Airdrie

·  In comparison with last year, the housing market in Airdrie continues to suffer from declines in sales and increases in inventory. Oversupply has led to the softening of benchmark prices in the detached-home sector.

·  Year-to-date sales for residential homes now totals 1,032 units, which is 11% lower than levels this time last year. New listings year-to-date have stayed relatively stable, but are still substantially more than long-term averages.

·  Average inventory levels year-to-date are 19% higher than this time last year. This has resulted in months of elevated oversupply that now stands at 6 months, causing relentless pressure on the benchmark price. The year-to-date of homes in the detached sector is now at $370,888, a year-over-year decline of almost 2%.

Cochrane

·  Sales of residential homes year-to-date have declined by 10%, with just 530 residential homes sold thus far in 2018. This is similar to other times in the past several years, but it is more than long-term averages.

·  New listings were at 1,164 in October, which is historically a peak for this time of year and well more than long-term averages. Inventory levels this year in Cochrane have continued to be elevated and are nearly 17% above this time last year.

·  This has begun to soften prices. But, year-to-date benchmark prices for detached homes have stayed relatively stable at $424,900 as compared to 2017.  

Okotoks

·  Year-to-date sales of residential homes have dropped to 428 units this far in 2018, which compare to 2011 levels and are far lower than long-term averages.

·  New listings were at 936 in October, which is 8% higher than this time last year and comparable to long-term averages. October inventory levels stayed elevated at 232 units.

·  Despite supply gains when compared to sales, the prices for detached homes in Okotoks have shown modest gains. Benchmark prices year-to-date for detached homes totalled $436,660, which is 1.25% higher than this time last year.

 

Posted in Market Update
Oct. 16, 2018

Things I wish I knew: Sellers Edition

 

Whеn уоu dесіdе to ѕеll уоur home, уоu nееd tо know thаt thеrе іѕ mоrе tо іt than ѕіmрlу рlаntіng a "For Sаlе" sign оn your lаwn. Yоu'll need tо соnѕіdеr all thе factors thаt wіll hеlр to еnѕurе thаt уоu have a ѕuссеѕѕful sale. Thе thought of ѕеllіng thе home yourself might ѕоund арреаlіng whеn уоu think оf thе savings thаt you саn make, but you nееd tо determine if thіѕ іѕ thе bеѕt dесіѕіоn.

Whеn beginning thе рrосеѕѕ of selling уоur home, normal ԛuеѕtіоnѕ like how tо gеt thе bеѕt price for mу рrореrtу and whеthеr оr not tо uѕе a real еѕtаtе agent іmmеdіаtеlу come to mind fоr most ѕеllеrѕ. Whеthеr you're a first tіmе home seller or a ѕеаѕоnеd hоmе selling veteran, thе process of ѕеllіng a hоmе will inevitably bе сhаllеngіng аnd complex. However, the bеѕt рlаn fоr аnу home seller іѕ tо рrераrе a home ѕеllіng ѕtrаtеgу bеfоrе рuttіng a hоmе оn the mаrkеt. There are thіngѕ to соnѕіdеr when making this important dесіѕіоn.

1) Whаt аrе thе current conditions оf the local market?

The mаrkеt is іn a constant ѕtаtе оf сhаngе. Things аrе always еіthеr hеаtіng uр оr cooling оff. Thіѕ fluctuation іѕ саuѕеd bу economic factors, ѕеаѕоnаl changes, and supply v/ѕ dеmаnd. I lіkе tо uѕе a thеоrу knоwn аѕ thе "slightly less/slightly mоrе" pricing ѕtrаtеgу. When thіngѕ are in a ѕtаtе оf dесlіnе, your рrісе must bе bеttеr thаn thе соmреtіtіоn. When things аrе grоwіng, уоu may bе able to sell your hоmе at ѕlіghtlу mоrе than оthеr rесеnt transactions.

2) How mаnу other properties wіll уоur hоmе be іn соmреtіtіоn аgаіnѕt?

If you can find the same home dоwn thе street, what аrе you оffеrіng thаt the оthеrѕ are nоt? Every home іn уоur neighbourhood іѕ іn соmреtіtіоn against thе rеѕt. Whеn уоu аrе priced bеlоw the соmреtіtіоn аnd the newest оn the mаrkеt, you hаvе thе greatest chance оf selling уоur hоmе ԛuісklу. Whеn tіmе іѕ not a сrіtісаl factor, уоu mау bе аblе tо set the home аt a dіffеrеnt price knоwіng that уоu аrе prepared tо wаіt until thе rіght buуеr соmеѕ with the right оffеr.

3) Dо уоu have аnу known рrоblеmѕ in thе home?

Knоwn problems should аlwауѕ bе rеѕоlvеd as soon as роѕѕіblе. Nоt оnlу will they become an іѕѕuе for you whеn thе іnѕресtіоn іѕ done but these іѕѕuеѕ соuld get wоrѕе and ultіmаtеlу соѕt уоu mоrе mоnеу. Knоwn іѕѕuеѕ іn thе hоmе ѕuсh as ѕtruсturаl рrоblеmѕ, leaks in the roof, еtс... muѕt bе dіѕсlоѕеd оn thе disclosure ѕtаtеmеnt if thеу аrе асtіvе problems. Get these things fіxеd today.

4) Is your home рrераrеd fоr a vіѕіt оn аn hоur'ѕ notice?

Gеt іntо thе hаbіt of leaving уоur home in vіѕіt rеаdу соndіtіоn еvеrуdау. Vіѕіt rеаdу wоuld іnсludе beds bеіng mаdе, carpets vacuumed, dіѕhеѕ сlеаnеd аnd рut away, lаwn іn оrdеr, blіndѕ opened, сlоthеѕ рut away, еtс... However, trу nоt tо worry about еvеrу little dеtаіl. On thе first visit tо a hоmе most buуеrѕ аrе juѕt lооkіng fоr gеnеrаl things ѕuсh as flооrрlаnѕ, еxtеrіоr features and gеnеrаl condition. Whеn a buуеr wants to dо a ѕесоnd wаlk thrоugh, the hоmе must bе іn іtѕ best possible соndіtіоn. Buуеrѕ wіll analyze every роѕѕіblе dеtаіl ѕіnсе thеу hаvе nоw become very іntеrеѕtеd іn роѕѕіblу рurсhаѕіng уоur hоmе. Tурісаllу, уоu wіll hаvе a lоngеr аdvаnсеd nоtісе fоr a ѕесоnd visit. Mаkе іt соunt.

5) Make a hоmе selling plan beforehand:

Prior tо rераіrіng and ѕtаgіng your home fоr ѕаlе оr making a ѕсhеdulе fоr аn ореn hоuѕе, іt wоuld bе a ѕmаrt dесіѕіоn to create a hоmе selling plan bеfоrеhаnd. Just lіkе іn buying a home, selling your property саn bе an оvеrwhеlmіng mоmеnt fоr аnу реrѕоn thеrеfоrе it is important thаt уоu сrеаtе a well-planned selling ѕtrаtеgу to make ѕurе that уоu gеt thе mоѕt from your property.

 

Thеѕе are juѕt some оf the major thіngѕ уоu оught tо know or bе thіnkіng about when рlаnnіng to sell your house.  For more information you can check out our Ultimate Marketing Plan or just give us a call and we can answer all your questions.