Calgary Real Estate Blog

Inventory Increases and Sales Drop in September- September 2017

October 6th, 2017 by Susanita de Diego

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

Housing recovery a balancing act- August 2017 Real Estate Stats

September 8th, 2017 by Susanita de Diego

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

Housing recovery remains a work-in-progress- July 2017 Real Estate Stats

August 24th, 2017 by Susanita de Diego

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

June spells a gradual recovery- June 2017 Real Estate Stats

July 12th, 2017 by Susanita de Diego

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

Home prices remained stable in May- May 2017 Real Estate Stats

June 7th, 2017 by Susanita de Diego

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

 

Housing market retains momentum in April- April 2017 Real Estate Stats

May 5th, 2017 by Susanita de Diego

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- March 2017 Real Estate Stats

April 19th, 2017 by Susanita de Diego

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

A Transition In the Making- February 2017 Real Estate Stats

March 10th, 2017 by Susanita de Diego

City of Calgary, March 1, 2017 – After the first two months of the year, Calgary’s detached sector continues to drive a slow transition in the housing market. February sales totaled 1,342 units, which is still 19 per cent below long-term averages, but an improvement over the past two years.

As sales kept trending upward, detached inventory levels continued to ease in February. These conditions caused months of supply to fall to 2.4 months, putting less downward pressure on pricing. Unadjusted detached benchmark prices totaled $501,900 in February, which is one per cent lower than prices recorded last year, but slightly higher than January figures.

February 2017

“The transition in the housing market appears to be underway,” said CREB® chief economist Ann-Marie Lure. “However, it is important to note that this change is primarily being driven by improvements in the detached market and stability in the labour market.”

Wow! An improvement in the absorption rate in almost every market segment! The city of Calgary Detached market segment is still leading the charge. The City of Calgary Semi-Detached and the Cochrane Detached market are both showing strong signs of recovery in their absorption rates.

Unfortunately although the absorption rates are better for the remaining market segments all signs point to a much slower recovery.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with low 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 – February 2017

January Market Improves Over Last Year – January 2017 Real Estate Stats

February 8th, 2017 by Susanita de Diego

City of Calgary, February 1, 2017 – For the fourth consecutive month, housing inventory levels have recorded year-over-year declines. At 4,112 total units, January’s inventory was 18 per cent below last year’s levels.

“While housing conditions continue to favour buyers, a slow transition toward more balanced conditions is helping to ease downward pressure on home prices,” said CREB® chief economist Ann-Marie Lurie. “Conditions have improved over last year, but people need to remember that last year’s market was one of the weakest on record. Despite the appearance of a major shift in activity, the transition in the housing market is going to be a slow process.”

Real Estate Statistics_ January 2017

January sales totaled 947 units, 24 per cent above last year, but 21 per cent below 10-year averages for the month. Sales activity improved across all product types, but only when compared to the near record lows that occurred in January 2016.

The detached segment of the market is demonstrating the most improvement. Sales activity totalled 584 units in January, a considerable improvement over the 466 sales recorded last year. Inventories have also declined pushing the months of supply to 3.2 months well below the 5.4 months recorded in January 2016.

Despite an improvement in apartment sales, new listings in the apartment sector continued to increase, causing a rise in apartment inventories. The apartment sector continues to face elevated levels of inventory in comparison to sales, weighing on prices.

The apartment benchmark price totaled $269,900 in January, five per cent lower than levels recorded last year. This change represents a total decline of 11.5 per cent since the 2014 high.

While the City of Calgary Detached segment has shown improvement that is not the case in the MD of Foothills, Airdrie, Cochrane and Okotoks.

For those who are considering taking advantage of the low interest rates to invest in real estate there are still several market segments with low 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 – January 2017

Is Your Home Market Ready? Here’s a FREE Home Enhancement Guide

February 3rd, 2017 by Susanita de Diego

In a previous article, “6 Reasons Why Your House Might Not Sell”,  we reported that in 2016 in the City of Calgary only 17,804 residential properties sold compared to the 32,274 properties that were listed on the Calgary Real Estate Board multiple listing service during the year. This means that, shockingly, 44.82% of the residential properties that were listed did NOT sell!Coldwell Banker Complete Real Estate Home Enhancement Guide

To review – the 6 reasons a property does not sell when listed are:

  1. The property was not market ready
  2. The property was not available to view
  3. The property was “under marketed”
  4. Market conditions were not reviewed and prospects were not followed up with
  5. The property had the wrong asking price
  6. The realtor or owner did not have the tools in place to generate an offer

Let’s tackle the first reason, the property was not market ready.

When there is a lot of choice for buyers – in real estate this means lots of competing properties listed for sale – buyers will comparison shop. Buyers will choose the homes that have neutral environments, feel spacious and smell new and clean. This does not mean that you have to spend a lot of money renovating but it does mean that you need to do your best to prepare your property BEFORE you list it for sale.

At Coldwell Banker Complete Real Estate our goal is not to simply sell your house, but to help you realize the best price obtainable for your property in the shortest period of time. Based on proven marketing techniques, our Home Enhancement Guide will introduce you to practical ideas on how to successfully prepare your house for sale. These suggestions require a minimum amount of time and expense to complete and are designed to make your house stand out from the competition.

We are happy to provide you with our downloadable Home Enhancement Guide free of charge and trust that you will find it a valuable tool as you get your home ready to be placed on the market.

Should you have any questions about selling your home, or require any other real estate services, we’d love to help!


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