Real Estate

NEWSLETTER

Peter Kusch

Tel.: 403-990-7990

 October 2019

SHIFTING TO STABILITY WITH A LOW SALES ACTIVITY

For the third consecutive month, sales activity improved over last year’s figures, and year-over-year new listings and inventories eased. This trend will help support more stability in the housing market.

Price declines have likely brought some buyers back into the market, and improvements in the market continue to be driven by homes priced below $500,000.

In the condominium apartment market, sales improved by 16 per cent this month. This represents the segment’s best September since 2015. Year-to-date growth in both the attached and apartment sector were enough to offset the modest decline in the detached sector resulting in year-to-date sales growth of nearly one per cent in the city.

Detached

• Improvements in sales over the past three months were not enough to offset pullbacks that occurred earlier in the year, as year-to-date sales remain nearly one per cent lower than last year’s levels. Despite citywide declines, sales improved in both the North West and South districts, thanks to significant gains in sales of homes priced below $500,000.
• The months of supply remains elevated at over four months, although this is an improvement compared to the same time last year.
• Benchmark prices in September ranged from a year-over-year decline of more than four per cent in the South district to general stability in the North East, North and West districts.

Apartment

• Sales improved by 16 per cent this month, making it the best September recorded in the past three years. Despite recent improvements in sales, year-to-date levels remain stable compared to last year, but well below longer-term trends.
• Condominium apartment sales were varied across the city. Significant growth was reported in the North and South East districts. Both districts have seen significant new-home development which could be influencing resale activity.
• Oversupply continues to weigh on prices in this segment, as unadjusted prices remain 17 per cent below 2014 highs.

Attached

• Sales increases for both semi-detached and row product have improved year-to-date attached sales by more than fiveper cent compared to last year. It is the only product type that has recorded significant gains year-over-year.
• New listings continue to ease, reducing inventory and the months of supply.
• Despite some annual reductions in the months of supply, buyers’ market conditions persist and prices continue to ease.
• Year-to-date benchmark price declines ranged from a high of nearly six per cent in the City Centre to a low of three per cent in the North East.

Despite improving sales and reductions in inventory, the overall market remains oversupplied. This continues to weigh on prices.

 Average days on the market (Calgary Metro)

 Attached category includes condominium townhouses and duplexes.

Median price (Calgary Metro)

The median price is where half sell for more and half for less.

Months of supply (Calgary Metro)

 Source: Calgary Real Estate Board

           Calgary Metro-within Calgary City Limits