January homes sales may bring Calgary out of the deep freeze

Posted by Justin Havre. on Thursday, February 2nd, 2017 at 9:57am.

 

If the statistics on January’s real estate market are any indication, the Calgary real estate scene might just be coming around.

There was more action last month in our city compared to January 2016 according to the Calgary Real Estate Board’s monthly report.

There were 947 transactions in January, an impressive 24% jump from the number of sales in the same month last year.  A positive step for the real estate scene for sure, but still well under the city’s 10-year average says chief economist for CREB Ann-Marie Lurie.

Her notes attached to January’s CREB report indicate that Calgary is still immersed in a buyer’s market but she believes the market is slowly transitioning towards a more balanced market which will stave off any big drops in real estate prices in the city.

Lurie also acknowledged that there’s been a stark improvement from last year, however considering how bad things were last January, the improvement isn’t that great and that a slow recovery still lies ahead.

The most improved sector last month was in single-family home sales.  There were 584 transactions in January, an increase over the 466 sales that happened in January 2016.  Condos sales made an improvement of 17% over last year, possible because prices are falling due to such high inventory.  The number of new entries into the market jumped by nearly 5% over January of 2016.

Incoming president of CREB, David P. Brown, was quoted in the January market report as saying last month’s sales figures prove that in Calgary, the market doesn’t stand still.  In looking ahead, Brown said that the 2017 will not be as unpredictable as it was in 2016, but it’s still early days and no one really knows how consumers will make decisions when purchasing a home this year in Calgary.

Brown said buying or selling a home is a personal decision and anyone entering a real estate transaction is trying to make a good decision. It’s important to look at personal objectives in the long-term and to give serious consideration to the price they want to pay for a new home or the price they’re willing to accept.

Sales were up but benchmark prices across the city came in at $437,400 which is a very slight drop of 0.16% from December’s sales and 2.82% under benchmark prices in January 2016.  In examining the statistics in relation to the last high point in 2014, the price of residential property in Calgary has fallen from 4.9% for single-family units to upwards of 11.5% for condominiums. This sector has endured the worst of the worst since 2014.

In terms of inventory, last month was the fourth month in a row that the inventory of homes for sale in Calgary has dropped year-over-year.  With January 2017 ending with 4,112 homes on the market, there were 18% fewer units available this year than last.  The month’s supply of housing in the city was pushed down to 3.2 months compared to 5.4 months from January of last year.   The number of days on average that residential units sat on the market increased from 51 days last January to 53 days January 2017. 

CALGARY HOUSING MARKET STATISTICS:  January 2017

Source: Calgary Real Estate Board

Jan 2017 YTY Comparative Analysis 

COMBINED CALGARY RESIDENTIAL SALES

Sales:  947 (+23.79%)

New Listings:  2,385 (-13.02%)

Active Listings (Inventory):  4,112 (-18.14%)

Median Sale Price: $425,000 (+ 4.29%)

Average Sale Price: $466,574 (+2.12%) 

CALGARY DETACHED HOME

Sales:   584 (+25.32%)

New Listings:  1,228 (-17.42%)

Current # of Listings:  1,849 (-27.12%)

Average Days on Market:  46 (-6.19%)

Median Sale Price:  $484,500 (+5.61%)

Average Sale Price:  $543,737 (+3.29%)

YTD Median Price:  $543,737 (+3.29%) 

CALGARY METRO APARTMENT/CONDO STATS

Sales: 151 (+17.05%)

New Listings:  626 (+4.68%)

Current # of Listings: 1,269(+1.36%)

Average Days on Market: 68 (+14.85%)

Median Sale Price:  $258,500 (+2.99%)

Average Sale Price: $282,429 (+0.84%)

YTD Median Price: $282,429 (+0.84%)

CALGARY METRO ATTACHED STATS

Sales: 212 (+24.71%)

New Listings:  531 (-19.18%)

Current # of Listings: 994 (-19.45%)

Average Days on Market: 62 (+27.76%)

Median Sale Price:  $336,750 (+0.07%)

Average Sale Price: $385,170 (-3.82%)

YTD Median Price: $385,170 (-3.82%)
 

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