Real Estate

NEWSLETTER

 

Peter Kusch

Tel.: 403-990-7990

 

 July 2022

 

THE  MARKET STARTS TO SLOW DOWN

Sales activity in June slowed down relative to the past several months. Higher interest rates are starting to have an impact on home sales. With further rate gains expected, we could see slower sales activity and some monthly price deterioration in the coming months.

Detached

For the third month in a row, sales levels in the detached market have eased. Much of the pullback has occurred from homes priced under $600,000. While some of this is likely related to the continued lack of supply choice, the pullback in this sector is also related to the rise in lending rates that are impacting qualifications levels and creating some hesitancy among consumers. . As of June, the benchmark price was $647,500. This is comparable to last month, but still 16% higher than last year.

Semi-Detached

Like the detached sector, sales activity slowed in June. While the pullback in sales was not enough to offset earlier gains, it was enough to push the months of supply up to nearly two months. Conditions still remain tight compared to what we traditionally see in this segment of the market. The benchmark price of $581,600 remains nearly 13% higher than the levels reported last year.

Row

Unlike the detached and semi-detached sectors, row sales activity improved and reached a new record high for the month of June. The row market tends to offer a more affordable option for consumers compared to both semi-detached and detached homes. The inventory trended down and the months of supply remained relatively tight at one and a half months. The benchmark price reached $363,700, nearly 16% higher than last year.

Apartment

While apartment condominium sales continued to slow from record levels reported earlier in the year, sales were still over 31% higher than levels reported last year. This in part was possible due to the recent boost in new listings. The months of supply pushed up to nearly three months. The benchmark price in June reached $277,400, nearly 1% higher than last month and 10% higher than last year’s levels. Despite these gains, prices continued to remain below 2014 highs.

 

 

 

 The average number of days on the market (Calgary Metro)

 

 

Average days on the market in 

June 2022

Average days on the market in 

June 2021

 

Detached  

 

24

27

 

Apartment

 

34

55

 

Semi-detached

 

25 37

 

Row

 

 

27

 

 

39

 

 

Median price (Calgary Metro)

 

 

Median price in  

June 2022

Median price in

June 2021

Percentage change

 

Detached

 

  $590,000

$512,000

15.2%

 

Apartment

 

$246,500

$224,000

10%

 

Semi-detached

 

$485,000

$424,900

14.1%

 

Row

 

 

$345,100

 

 

$313,500

 

 

10.1%

 

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

 

Months of supply (Calgary Metro)

 

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
October 2019 4.49
November 2019 5.05
December 2019 5.30
January 2020 5.87
February 2020 4.59
March 2020 4.91
April 2020 9.71
May 2020 5.38
June 2020 3.66
July 2020 3.62
August 2020 4.11
September 2020 3.66
October 2020 3.31
November 2020 3.50
December 2020 3.06
January 2021 3.35
February 2021 2.46
March 2021 1.87
April 2021 1.89
May 2021 2.27
June 2021 2.37
July 2021 2.88
August 2021 2.81
September 2021 2.59
October 2021 2.23
November 2021 1.86
December 2021 1.50
January 2022 1.30
February 2022 1.09
March 2022 1.06
April 2022 1.69
May 2022 1.69
June 2022 1.90

 

 

 Source: Calgary Real Estate Board

Calgary Metro-within Calgary City Limits