Spring arrived on a positive note in the Calgary real estate market especially in the detached home sector. Prices are on an even keel and on a super positive note, inventory of single-family homes in the city are trending down especially in the North-West quadrant of the city. Sales are 20% ahead of last year.
The Calgary Real Estate Board (CREB) reports that the market is now balanced when it comes to detached homes after quite a stretch of too much supply and too little demand. March figures show that long-term averages show we’re still 10% short but quite far ahead of the sales we’ve seen the past 18 months. Compared to March 2016, there are significantly fewer properties for sale in Calgary this spring and that has but the brakes on prices. The months’ supply of homes in Calgary has already returned to normal levels as well.
CREB president David P. Brown said in the monthly report that the demand for homes in Calgary hasn’t gone “through the roof” but because there were fewer properties and fewer new listings come online, the market has balanced out nicely. He noted that recent improvements have made things more certain for many out shopping for a new home and that spring has started out on a most positive note with good activity.
The unadjusted benchmark price for single-family units rose from February’s average by 0.4% and has remained steady the last twelve months. The market is waiting for average sale prices in the attached sector and apartment sector to pick up their socks as prices are still quite a bit below what we saw this time last year in Calgary; having said that, sales of multi-family homes are about 40% higher than March 2016.
Chief economist and CREB spokesperson Ann-Marie Lurie explained that the market as it pertains to condos in Calgary is very different with inventory levels experiencing a big injection from new developments. The added pressure of all these units coming into the market is having an impact on prices especially in those denser residential areas of Calgary.
Across Calgary, there were 5,114 properties for sale and while that may sound like a lot it’s actually 16% fewer properties than last year. Unpack that statistic into 25% fewer single-family homes and 17% fewer attached homes this year than last. Unfortunately for apartment-style condominiums, there are 3% more units on the market than last year.
Lurie explained that the changes we saw in the housing market in March reflect the transition happening in Calgary’s labour market. She says the remaining 9 months of the year will follow market activity in the next two quarters of 2017 when, historically speaking, 60% of sale occur.
CALGARY HOUSING MARKET STATISTICS: March 2017
Source: Calgary Real Estate Board
March YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 1,906 (+19.87%)
New Listings: 3,245 (+0.62%)
Active Listings (Inventory): 5,114 (-16.19%)
Median Sale Price: $435,000 (+ 3.02%)
Average Sale Price: $490,534 (+4.67%)
CALGARY DETACHED HOME
Sales: 1,176 (+17.01%)
New Listings: 1,798 (-1.10%)
Current # of Listings: 2,312 (-25.25%)
Average Days on Market: 38 (-7.46%)
Median Sale Price: $490,000 (+2.08%)
Average Sale Price: $571,295 (+6.09%)
YTD Median Price: $490,000 (+4.26%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 302 (+17.51%)
New Listings: 728 (+7.06%)
Current # of Listings: 1,575 (+2.87%)
Average Days on Market: 57 (+17.93%)
Median Sale Price: $250,750 (-7.81%)
Average Sale Price: $280,226 (-5.99%)
YTD Median Price: $259,500 (-2.44%)
CALGARY METRO ATTACHED STATS
Sales: 428 (+30.49%)
New Listings: 719 (-1.10%)
Current # of Listings: 1,227 (-16.98%)
Average Days on Market: 51 (+15.23%)
Median Sale Price: $340,500 (+1.34%)
Average Sale Price: $417,024 (+7.40%)YTD Median Price: $340,000 (+0.35%)