Calgary market sees new life in October home sales

Posted by Justin Havre. on Tuesday, November 1st, 2016 at 4:59pm.

 

Activity picked up in a big way last month in Calgary with a significant rebound in home sales.  October was the best month for real estate transactions since late 2014 with some good numbers that resembled the Calgary of old.

Property sales across the city numbered 1,644 units which is up 16% over October 2015.  In its monthly report to the community, the Calgary Real Estate Board (CREB®) did some guess work as to why Calgarians jumped back into buying.

What Contributed to October’s Rebound

Chief economist Ann-Marie Lurie pointed to a number of reasons, such as the new changes to mortgage rules from Canada Mortgage and Housing Corp., more available housing inventory in the lower end of the market as well as sellers agreeing to lower their asking prices.  Lurie believes that the uptick in home sales is a result of all three of these factors and warns that this rebound we experienced last month might only be temporary.

What Property Types Sold the Most

Analysis of October’s numbers show that compared to October 2015 sales were up in all property types with the lion’s share going to single-family homes which were up by 18%.  Specifically, single-family homes that were in the $300,000 to $400,000 price range were the most popular.  There were also a significant number of attached homes and apartment condos in the lower price ranges that shifted last month.

Will it Continue?

CREB® president Cliff Stevenson weighed in on October’s results and talked about how positive the numbers were for both buyers and sellers last month, considering how challenging the market has been thus far in 2016.  He’s hesitant to call this a trend and instead refers to the rebound as a building block and said he hopes that industry professionals and clients see some more consistent sales numbers in November.

Calgary Market Year-to-Date

October was a bright spot in the year-to-date statistics which remain lower than the first 10 months of 2015 in all property types and price points.  So far this year, 15,642 units have changed hands which is 6.3% fewer properties than January to October 2015.

Sales are Up but Prices Still Slide

Even with this exciting flurry of activity in sales under $400,000 in Calgary, last month saw benchmark prices chipped away even further.  The unadjusted benchmark across the city was $438,900 which is a third of a percent lower than September but 4% under the October 2015 benchmark.

In the last two years, ever since the economy went south, prices have fallen by 3.8% in the single-family home sector to as much as 9.4% in the apartment sector. 

CALGARY HOUSING MARKET STATISTICS:  Oct 2016

Source: Calgary Real Estate Board

Oct 2016 YTY Comparative Analysis 

COMBINED CALGARY RESIDENTIAL SALES

 

  • Sales:  1,644 (+15.62)
  • New Listings:  2,364 (-12.15%)
  • Active Listings (Inventory):  5,427 (-3.45%)
  • Median Sale Price: $410,500 (+ 2.03%)
  • Average Sale Price: $462,279 (+1.02%)

 

 CALGARY DETACHED HOME

  • Sales:   1,031 (+18.23%)
  • New Listings:  1,325 (-8.05%)
  • Current # of Listings:  2,565 (-12.19%)
  • Average Days on Market:  42 (+9.95%)
  • Median Sale Price:  $464,500 (-1.22%)
  • Average Sale Price:  $530,686 (+2.18%)
  • YTD Median Price:  $478,000 (-0.42%) 

CALGARY METRO APARTMENT/CONDO STATS

  • Sales: 251 (+5.91%)
  • New Listings:  509 (-13.29%)
  • Current # of Listings: 1,542 (+12.88%)
  • Average Days on Market: 49 (+20.64%)
  • Median Sale Price:  $250,000 (-12.59%)
  • Average Sale Price: $289,127 (-9.14%)
  • YTD Median Price: $270,000 (-1.10%)

CALGARY METRO ATTACHED STATS

  • Sales: 362 (+15.65%)
  • New Listings:  530 (-20.06%)
  • Current # of Listings: 1,320 (-1.05%)
  • Average Days on Market: 49 (+20.64%)
  • Median Sale Price:  $330,000 (-1.70%)
  • Average Sale Price: $387,511 (-0.91%)
  • YTD Median Price: $342,000 (-1.72%)

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