Single-family prices hold their own while the rest of the market chokes

Posted by Justin Havre. on Thursday, September 1st, 2016 at 5:43pm.

Summer draws to a close and the leaves start to turn as the Calgary Real Estate Board continues to keep spirits high for those in the city’s real estate industry.

August was a month of contrast in the Calgary real estate market.   The number of transactions has dropped over figures from August 2015 with a total of 1,567 properties changing hands.  The biggest news is the pronounced gap between what happened in the single-family market segment and what happened with attached homes, i.e., apartment condo and townhomes – specifically the higher density products.

Chief economist for CREB® and spokesperson, Ann-Marie Lurie, said in the monthly statement that there were fewer sales of detached homes in Calgary.  At the same time, the number of new listings to hit the market has really eased off.  Without huge numbers of homes on the market there has been no pressure on sellers to slash prices.

Lurie said sales have slowed in the attached home market as well, however inventory levels have gone through the roof.  There was a six-month supply of apartment condos and town homes in August which is almost a record for the month of August.

The benchmark for single-family homes came in at $503,200 – an indistinguishable difference from July.  It’s down 3.3% over August 2015.  That’s not a punishing number.

On the other side, sales in attached homes are about as poor as they were in 2003. Benchmark prices for attached high-density product fell to $274,900 which is 7% below August 2015.  This price is similar to figures from 2013.  It’s a tough pill to swallow for people who purchased a condo or attached home three years ago as they’re likely no further ahead.

However, looking a little deeper into the numbers, semi-detached homes didn’t perform as badly as townhomes again pointing towards higher-density products.

Cliff Stevenson, CREB® president, warned that these variables within the market mean that data analysis needs to be done carefully when buyers and sellers are making decisions this fall.

Overall, it continues to be a buyer’s market in Calgary but for buyers shopping for single-family homes it’s likely that there won’t be any deals of the century just yet.  As we launch into September, the biggest choice and the better prices will be found for those shopping for a condo or townhome. 

CALGARY HOUSING MARKET STATISTICS:  August 2016

Source: Calgary Real Estate Board

August YTY Comparative Analysis 

COMBINED CALGARY RESIDENTIAL SALES

Sales:  1,567 (-4.57%)

New Listings:  2,759 (+0.62%)

Active Listings (Inventory):  5,656 (+8.46%)

Median Sale Price: $419,00 (-0.77%)

Average Sale Price: $474,605 (+1.97%) 

CALGARY DETACHED HOME

Sales:  980 (-1.41%)

New Listings:  1,524 (-7.24%)

Current # of Listings:  2,720 (-3.99%)

Average Days on Market:  41 (+9.18%)

Median Sale Price:  $467,750 (-3.36%)

Average Sale Price:  $543,312 (-1.23%)

YTD Median Price:  $480,000 (-0.62%) 

CALGARY METRO APARTMENT/CONDO STATS

Sales: 267 (–4.98%)

New Listings:  615 (+19.65%)

Current # of Listings: 1,571 (+28.04%)

Average Days on Market:  60 (+29.16%)

Median Sale Price:  $271,500 (+2.07%)

Average Sale Price: $316,842 (+7.18%)

YTD Median Price: $271,830 (-0.57%)

CALGARY METRO ATTACHED HOMES

Sales:  320 (-12.81%)

New Listings: 620 (-5.98%)

Current # of Listings: 1,365 (+18.18%)

Average Days on Market: 51 (+17.77%)

Median Sale Price:  $332,500 (-6.34%)

Average Sale Price: $395,826 (-1.61%)

YTD Median Price:  $343,500 (-1.86%)

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