The story on September real estate in Calgary is a positive one. The Calgary Real Estate Board released last month’s statistics and while the market continues to be soft it’s still holding.
Single family homes, the segment of the market that acts like an economic barometer in Calgary, have shown signs of stability as Alberta comes to terms with low oil prices and subsequent unemployment.
The benchmark price for detached product in Calgary was $503,400, 3.3% below the September 2015 benchmark for single family homes. Lower than last year but consistent with activity in August of this year. This equilibrium is a good sign that the market is steady and that the bottom is not going to fall out anytime soon. With fewer buyers out looking, industry professionals were on the look out for prices to fall sharply given this year’s circumstances. However, Ann-Marie Lurie, CREB chief economist, said again that it hasn’t happen and likely won’t happy because there just isn’t the over-supply of houses to make this happen. In fact, inventory levels fell for the second month in a row. It’s still higher than 2015 – approximately 5% higher than September of last year. This is attributable not to single-family homes which is at a three-month inventory level but to a larger than normal value of apartment condos and attached homes on the market. Some property types are taking as long as eight months to sell.
Reduced inventory in the detached market segment, especially since August however isn’t quite a trend but it’s something to watch for in the months to come.
CREB’s Cliff Stevenson said in his month report that Calgarians have done a reality check and are highly educated as to what’s happening in the marketplace.
Sales statistics from last month also highlight the stability of detached product in Calgary. Sales of single-family homes last month were up by 4% for the first time since 2014. Sales of attached homes were also up by 19%. While that sounds encouraging, the other side of the coin is the apartment condo market segment where people have just dumped listings on the market. Sales fell by a disappointing 23%. In examining the average, we see that sales activity is still short of last year and is way down below long-term sales volume averages. There is also a lot of competition between resale apartment condos and attached product such as town houses and new construction coming online.
CALGARY HOUSING MARKET STATISTICS: Sept 2016
Source: Calgary Real Estate Board
Sept 2016 YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 1,488 (+2.06%)
New Listings: 3,042 (-3.49%)
Active Listings (Inventory): 5,877 (+ 4.97%)
Median Sale Price: $433,750 (+ 2.06%)
Average Sale Price: $491,462 (+7.24%)
CALGARY DETACHED HOME
Sales: 945 (+4.30%)
New Listings: 1,660 (-6.11%)
Current # of Listings: 2,823 (-6.80%)
Average Days on Market: 42 (+11.51%)
Median Sale Price: $490,000 (+3.16%)
Average Sale Price: $564,387(+7.59%)
YTD Median Price: $480,000 (-0.41%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 200 (– 22.78%)
New Listings: 637 (-3.04%)
Current # of Listings: 1,651 (+27.69%)
Average Days on Market: 56 (+15.02%)
Median Sale Price: $280,000 (+5.66%)
Average Sale Price: $303,202 (+2.20%)
YTD Median Price: $272,248 (0.00%)
CALGARY METRO ATTACHED STATS
Sales: 338 (+19.01%)
New Listings: 680 (+1.49%)
Current # of Listings: 1,403 (+9.87%)
Average Days on Market: 52 (+25.98%)
Median Sale Price: $340,000 (-0.22%)
Average Sale Price: $397,845 (+0.78%)
YTD Median Price: $343,000 (-1.97%)