April showers bring optimism into a flowering real estate market. Things continue to look up in Calgary as real estate sales last month in several key areas of the marketplace.
That includes more employment opportunities in Calgary which has bolstered buyer confidence. With more sales in April came some reduction in inventory especially in single-family homes. That created even more stability in the real estate market.
The Calgary Real Estate Board’s April report indicated that sales of detached properties in Calgary were up 6% over April 2016 with 1,204 single-family homes moved off the market. From January 2017 to April 30, 2017 sales of single-family homes are 14.6% ahead of the same time period in 2016 with sales of 3,781 properties.
David Brown, president of the Board, said that people sitting on the fence waiting to make their move have been pushed forward because better employment in Calgary has meant less uncertainty. On the other side of the coin, better jobs mean fewer people need to sell their homes. That means less inventory, fewer reductions in price, better sales. The supply of properties for sale in the city is greatly reduced from even two years ago. There were 20% fewer single-family homes for sale in Calgary last month that there were in April 2016 and with a more balanced number of new construction detached units hitting the market.
He explained that people selling their homes right now are in good shape with the market the best it’s been in the last two years. There were 5,495 residential units on the market last month in Calgary, bringing the number of months’ supply of properties below three months. This is the second month in a row that this figure has been more reasonable.
Prices rose by 4% over 2016 in with average sale prices and median sales prices. Last month single-family homes sold for an average of $562,633 and a median price of $503,250. There wasn’t much movement in the benchmark price coming in at $439,600 last month, virtually unchanged over March and an insignificant drop of 0.9% over April 2016.
Brown noted that activity varies across the city and across all property types but generally speaking, the market is becoming far more balanced than it was which supports price stability as well.
While single-family sales appear to be the shining start in Calgary, the Board reports that apartment condos are still lagging behind with too many for sale and too many listings relative to sales, keeping prices down.
The median price in April fell 4.1% over April 2016 coming in at $267,000. The average sales price remained steady at $303,000 but when you look at where prices where three years ago, average sales prices for condos are down 12%.
CREB spokesperson Ann-Marie Lurie, the Board’s chief economist, wants to see more improvements in Calgary’s employment sector to prevent any further losses. While improved, she believes the recovery is slow and it will be some time before we see any significant gains.
CALGARY HOUSING MARKET STATISTICS: April 2017
Source: Calgary Real Estate Board
April YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 1,917 (+8.43%)
New Listings: 3,296 (+2.46%)
Active Listings (Inventory): 5,495 (-12.09%)
Average Days on Market: 39 (-15.82%)
Median Sale Price: $445,000 (+ 3.49%)
Average Sale Price: $495,387 (+3.87%)
YTD Median Price: $435,000 (+3.08%)
CALGARY DETACHED HOME
Sales: 1,204 (+5.99%)
New Listings: 1,861 (+2.25%)
Current # of Listings: 2,522 (-19.63%)
Average Days on Market: 32 (-27.29%)
Median Sale Price: $503,250 (+4.03%)
Average Sale Price: $562,633 (+3.95%)
YTD Median Price: $493,000 (+4.01%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 287 (+5.13%)
New Listings: 693 (+4.05%)
Current # of Listings: 1,647 (+4.04%)
Average Days on Market: 49 (-8.49%)
Median Sale Price: $267,000 (-4.13%)
Average Sale Price: $302,999 (+0.15%)
YTD Median Price: $261,300 (-3.22%)
CALGARY METRO ATTACHED STATS
Sales: 426 (+18.66%)
New Listings: 742 (+1.5%)
Current # of Listings: 1,326(-13.33%)
Average Days on Market: 52 (+7.75%)
Median Sale Price: $337,500 (+6.99%)
Average Sale Price: $434,943 (+7.18%)
YTD Median Price: $347,600 (+1.79%)