The only flood so far in Calgary this spring is the number of new homes hitting the market. The Calgary Real Estate Board (CREB®) released figures for May 2016 and the news continues to be the same as it has the last six months or so. Inventory is high, prices are falling and the slight uptick in oil prices has yet to affect the economy in Alberta.
May Real Estate Statistics for Calgary
The number of sales last month was down by 12% over May of last year while the inventory of homes on the market is 14% higher. That translates into 1,923 homes that sold in May compared to 2,186 in May of 2015. While inventory levels are up across the city, the number of single-family homes is starting to decrease slightly in three Calgary areas: City Centre, West and East.
Ann-Marie Lurie, CREB® chief economist, stated in her monthly report that the gains in oil prices seen in May left agents and sellers feeling somewhat optimistic, however the reality is that unemployment is still a factor in lower demand for housing. Initially, jobs were being lost in the energy sector but now employment in other sectors within the province is experiencing a decline. The supply of houses, not only for sale but for rent, is continuing to grow.
Tough market if you’re selling a Calgary Condo
Last May in Calgary there were 5,393 properties for sale. This year we jumped to 6,148 active listings and 50% of the listings in the resale market in May were apartment condos and attached dwellings. This is where half of the new listings are coming from so it’s a tough go for people trying to sell their condos, with six months’ supply current available in Calgary. It’s been a buyers’ market in this market segment for the past six months. Buyers are also looking at both single-family homes, townhomes and attached homes in the lower price ranges. They’re also attracted to incentives being offered by new home builders particularly at a time when new condos are hitting the marketplace. Even with the high levels of inventory, the numbers still haven’t hit 2008 levels when the market was flooded with condos.
The benchmark price of a single-family home is $500,500 which is down 3.4% over May 2015. The sharpest decline in benchmark prices occurred in City Centre.
The average home price actually rose about 3% from $478,850 up to $494,078. The average length of time for properties to sell was 42 days.
CALGARY HOUSING MARKET STATISTICS: May 2016
Source: Calgary Real Estate Board
May YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 1,923 (-12.03%)
New Listings: 3,319 (+4.77%)
Active Listings (Inventory): 6,148 (+ 14.00%)
Median Sale Price: $433,000 (0.00%)
Average Sale Price: $494,078 (+3.18%)
CALGARY DETACHED HOME
Sales: 1,217 (-10.65%)
New Listings: 1,852 (-1.23%)
Current # of Listings: 3,018 (+3.25%)
Average Days on Market: 39 (+3.71%)
Median Sale Price: $489,900 (+1.01%)
Average Sale Price: $562,195 (+3.74%)
YTD Median Price: $480,000 (+0.21%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 275 (– 23.40%)
New Listings: 686 (+11.91%)
Current # of Listings: 1,608 (+22.75%)
Average Days on Market: 49 (+0.98%)
Median Sale Price: $280,000 (-0.18%)
Average Sale Price: $312,341 (-4.84%)
YTD Median Price: $273,616 (+.23%)