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.
“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