The Calgary spring real estate market is in full swing and current activity seems to indicate a trend towards increased sales and reduced inventory on market.
There was cautious optimism from many going into this spring market and so far the numbers do seem to indicate that we are moving in a more positive direction. The recovery is slow and starting at the lower price points and in specific markets mostly in the detached sector and attached property types. The apartment sector continues to struggle with over 17% in price adjustment since 2014.
While year over year numbers continue to show down sales, the month over month numbers indicate we are moving to recovery in those recovering sectors. I detail the specific CREB info below. For those timing the market, always remember that you never know you are at the bottom of the curve until it has passed.
In the last few weeks especially I have been showing a lot of houses and there is a marked difference between the way homes are presented. Although the market is adjusting buyers still have a lot of options and also are willing to wait for the ‘right one’. This is the time to touch up the paint around the front entrance, clean up the yard, make minor repairs, put away the clutter and clean. And then clean some more. Get your documents together (utilities, permits, RPR’s) and do the maintenance required to make your home ‘the right one’.
From the CREB May 2019 Market Report:
HOUSING MARKET FACTS
Detached sales in May totalled 1,182 units. This is a 12 per cent increase over last year, but still 13 per cent below long-term averages. The improvement in sales was driven primarily by gains in homes priced under $500,000.
Sales activity increased across most districts in May. However, year-to-dates sales have only increased in the East, South and North East districts of the city. Citywide sales remain one per cent lower than last year’s levels.
New listings in May pulled back significantly from previous year’s levels. Combined with an improvement in sales, this resulted in inventories declining from 4,504 units last May to 3,921 units this month. This is the first time since May 2017 that year-over-year inventories declined.
Easing inventory and improving sales caused months of supply to ease to 3.3 months. This is still elevated compared to historical levels, but represents an improvement compared to levels from the past year.
Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices four per cent lower than last year and seven per cent lower than 2014 highs.
The improvement in monthly sales was not enough to offset previous declines. Year-to-date apartment sales sit at 1,030 units. This is seven per cent lower than last year and 28 per cent lower than longer-term averages. Easing sales were met with fewer new listings, reducing the market inventory. This pushed months of supply to just over five months.
If the reduction in oversupply continues, it will eventually help limit price declines. However, this market remains oversupplied and prices continue to edge down.
May benchmark prices totalled $246,900, 0.6 per cent lower than last month and nearly three per cent lower than last year’s levels. This is resulting in a total price adjustment of over 17 per cent since 2014.
Attached sales activity continue to improve in May. Year-to-date sales improved by two per cent, making this the only sector to record a year-to-date improvement. Improvements occurred throughout most districts of the city, apart from the City Centre, North West and West districts.
New listings have also pulled back relative to sales. This is causing inventories to ease compared to last year and months of supply to trend down.
Benchmark prices remain five per cent lower than last year’s levels but have seen some modest gains on a month-to-month basis. Despite some signs of improvement, prices remain 10 per cent lower than 2014 highs.
Current Market Snapshot June 10, 2019 at noon:
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