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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)

 

 

Average days on the market in 

September 2019

Average days on the market in  

September 2018

 

Detached  

 

55

52

 

Apartment

 

70

66

 

Attached

 

62 59

 

 Attached category includes condominium townhouses and duplexes.

  

Median price (Calgary Metro)

 

 

Median price in  

September 2019

Median price in  

September 2018

Percentage change

 

Detached

 

  $457,750

$470,500

-2.7%

 

Apartment

 

$244,000

$252,250

-3.3%

 

Attached

 

$330,000

$335,000

-1.5%

 

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

 

Months of supply (Calgary Metro)

 

January 2014 1.57
February 2014 1.47
March 2014 1.26
April 2014 1.55
May 2014 1.57
June 2014 1.82
July 2014 2.05
August 2014 2.07
September 2014 2.13
October 2014 1.97
November 2014 2.16
December 2014 2.99
January 2015 5.31
February 2015 4.57
March 2015 3.19
April 2015 2.85
May 2015 2.44
June 2015 2.32
July 2015 2.53
August 2015 3.16
September 2015 3.85
October 2015 3.93
November 2015 4.21
December 2015 4.94
January 2016 6.57
February 2016 5.04
March 2016 3.83
April 2016 3.54
May 2016 3.20
June 2016 2.95
July 2016 3.26
August 2016 3.61
September 2016 3.97
October 2016 3.30
November 2016 4.06
December 2016 4.04
January 2017 4.36
February 2017 3.35
March 2017 2.71
April 2017 2.90
May 2017 2.95
June 2017 3.12
July 2017 4.12
August 2017 4.15
September 2017 4.71
October 2017 4.41
November 2017 4.03
December 2017 4.29
January 2018 4.83
February 2018 4.73
March 2018 4.64
April 2018 4.82
May 2018 4.91
June 2018 4.65
July 2018 5.46
August 2018 5.47
September 2018 6.28
October 2018 5.56
November 2018 5.55
December 2018 6.18
January 2019 6.81
February 2019 6.03
March 2019 4.96
April 2019 4.57
May 2019 3.89
June 2019 4.24
July 2019 4.36
August 2019 4.45
September 2019 5.02

 

 

 Source: Calgary Real Estate Board

Calgary Metro-within Calgary City Limits