As more people were laid off in Calgary, the expectation was that house prices would fall fast and hard but so far, that hasn’t been the case. Certainly home prices have been creeping downward, however the clouds parted last month with a somewhat resilient June.
The Calgary Real Estate Board reports that single-family homes and semi-detached home sales were up enough to bring about some balance in the new listings versus inventory ratio in our city.
These conditions have reined in house prices, helping to slow the downward creep.
This news may be encouraging to sellers hoping to move detached or semi-detached units in the next few weeks. Balanced but still a buyer’s market with more choice for home shoppers and investors and the ideal scenario to negotiate a much lower selling price.
Ann-Marie Lurie, chief economist with CREB®, warns that economic conditions in Alberta are still such that sellers will continue to battle challenges when it comes to effectively pricing properties in Calgary.
The benchmark price for a single-family home in June was $502,400. This is up by a very slim 0.4 % over May 2016 which is the first time since late last fall that prices for single-family homes recorded a gain, be it every so small. On a positive note, this brought the rate at which prices are falling down from 2.2% from the first quarter of 2016 to 0.7% in the second. This figure is still 3.4% lower than June of 2015.
The overall picture in June
The real estate market last month remains sluggish overall, with the number of sales coming in at 2,028 units which down by 7% from May. While there was more balance in the detached sector, inventory levels in general continue to rise. Last month’s numbers came in a 5,973 residential units which is 16% higher than June 2015.
It’s a great time to buy a condo
Duplex homes, town houses and apartment condos are hitting the market at a fast rate than detached homes, with inventory gains in June at 30% higher than June 2015. Compare that with single-family units at 5%. With a flood of attached homes in multi-family units in the market and smaller demand, prices have dropped by 0.1% over May. The year-to-date benchmark price on average is 5.3% lower than June 2015 in this sector.
What this means for first-time buyers with personal financial stability or buyers with sufficient equity in their present home looking to move up is that they can get into a home that was likely out of their range a year or two years ago. Plus, they have plenty of time to have a good look at what’s available in Calgary without immediate fear that a good deal will be snatched out from under them or that they have to compete with multiple offers.
CALGARY HOUSING MARKET STATISTICS: June 2016
Source: Calgary Real Estate Board
June YTY Comparative Analysis
COMBINED CALGARY RESIDENTIAL SALES
Sales: 2,028 (-7.06%)
New Listings: 3,078 (-1.38%)
Active Listings (Inventory): 5,973(+ 16.25%)
Median Sale Price: $430,000 (0.00%)
Average Sale Price: $485,504 (+0.37%)
CALGARY DETACHED HOME
Sales: 1,282 (-3.68%)
New Listings: 1,739 (-4.97%)
Current # of Listings: 2,923 (+4.80%)
Average Days on Market: 41 (+12.15%)
Median Sale Price: $489,250 (-.0.84%)
Average Sale Price: $557,977 (+0.71%)
YTD Median Price: $480,000 (-0.17%)
CALGARY METRO APARTMENT/CONDO STATS
Sales: 311 (– 22.06%)
New Listings: 603 (-1.31%)
Current # of Listings: 1,543 (+27.31%)
Average Days on Market: 49(+24.09%)
Median Sale Price: $267,500 (-2.73%)
Average Sale Price: $310,497 (-3.65%)
YTD Median Price: $272,000 (-0.46%)