Courtesy of CREB


City of Calgary, November1, 2019 -Sales activity in October improved by nearly 10 per cent compared to last year, driven mostly by improvements for apartment and attached product.


New listings also eased, which helped reduce inventory levels and the oversupply in the market. Despite the move to more balanced conditions, the market remains oversupplied and prices continue to remain below last year’s levels.


“Employment has shifted in the city, with job growth occurring in our non-traditional sectors and often at a different pay scale. This is consistent with the shift to more affordable housing product,” said CREB® chief economist Ann-Marie Lurie.


“However, at the higher end of the market the amount of oversupply is rising, as supply cannot shift enough to compensate for the reductions in demand. This is likely causing divergent trends in pricing and preventing prices from stabilizing across the city.”


This is a market where signs of improvement are not consistent across all product types and price ranges.


Improvements in sales are occurring in the lower price ranges across all product types. This is not yet translating into price shifts, as persistently elevated supply levels continue to place downward pressure on prices.


As of October, citywide unadjusted benchmark prices were $422,900, just below last month’s levels and two per cent lower than last year’s levels.


Detached


  • Sales activity this month came in just above last year’s levels, thanks to growth in all districts except the North East and North. However, year-to-date citywide levels remain comparable to last year’s levels and over 19 per cent lower than longer-term trends.
  • New listings continued to ease this month, but at a slower pace than levels recorded over the past eight months.
  • Improvements in sales and easing new listings brought down inventory levels by 15 per cent. With 3,391 units in inventory, the months of supply is just under four months. This is a decline compared to last year, but it is still high based on longer-term trends. Months of supply eased across all districts except the North, likely due to the increased pressure coming from the new-home sector.
  • Unadjusted benchmark prices eased over the previous month due to declines in all districts except the South East and East. Overall, prices in October remained nearly two per cent lower than last year’s levels and nearly eight per cent lower than previous highs.

Apartment


  • Apartment sales continued to improve this month and new listings eased. This helped reduce inventory levels and brought the months of supply down just under 6 months. Despite improvements, the market remained firmly in buyers’ territory.
  • Year-to-date improvements in sales were driven by gains in the North, West and South East sectors. Inventory declines have occurred in all districts except the South East.
  • Overall, year-to-date prices remained over two per cent lower than last year’s levels and nearly 17 per cent lower than peak pricing. However, there are some signs of stabilization in prices this year, with prices in the North East, South East and East remaining comparable to last year.

Attached


  • The attached market continues to show the largest increase in sales, with year-to-date growth of nearly seven per cent. Improvements occurred across all districts except for the North West and North East.
  • New listings have eased by eight per cent so far this year, causing inventory declines and reductions in the amount of oversupply.
  • Like most sectors, this segment remains oversupplied, which is causing price adjustments. As of October, semi-detached and row prices remained two and four per cent lower than last year’s levels, respectively. Prices continue to ease across nearly alldistricts and remain well below previous highs.
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Courtesy of the Calgary Real Estate Board

 

Inventory levels rise

August sales activity falls below long-term averages


Calgary, September 1, 2015 - Calgary’s residential resale housing market recorded further easing in absorption rates in August due to weaker sales activity.


Sales in the city declined by 27 per cent to 1,643 units last month relative to the same time last year and 12 per cent below 10-year averages.




“Persistent weakness in the energy sector weighed on sales activity this month, which once again retracted to levels well below the norm for the city,” said CREB® chief economist Ann-Marie Lurie.


Residential unadjusted sales-to-new-listings ratio eased from 67 per cent in July to 60 per cent in August, contributing to a monthly rise in inventory levels to 5,146 units. Combined with weaker sales activity, months of supply pushed up to 3.13 months.


While every price range experienced fewer sales per new listing, homes in the higher price ranges saw the most significant decline in absorption rates compared to last year, noted Lurie.
Year-to-date new listings in the $600,000-plus category increased in share of activity compared to last year. However, sales activity in this price range represented 18 per cent of all the sales last month, down from nearly 20 per cent last year.


“With more options in the higher-end of the market, sellers will need to consider their competition as well as their goals regarding a sell date,” said CREB® president Corinne Lyall. “This will influence the pricing strategy they agree upon with their real estate professional.”
Lurie added that despite challenges near the top of the market, absorption rates in the under-$500,000 detached sector remained relatively tight and is likely causing some price trend discrepancies.


Despite weaker absorption rates, benchmark prices remained relatively stable, totaling $456,300 in August. Lurie credits this steadiness to both the detached and attached sectors, which have remained more balanced relative to the apartment sector.


The apartment sector continued to struggle with increased competition from competing properties during the month, as unadjusted months of supply rose to 4.3. Increase supply is ultimately weighed on pricing, as prices declined on a year-over-year basis by 1.44 per cent in August.
Overall, the combination of price declines and higher inventory levels in some segments of the market are influencing buying patterns in Calgary, said Lyall.


“Improved selection in these segments is giving buyers the opportunity to be discerning about their purchase decisions,” she said. “They may be weighing their options between resale and new product, along with what community fits their lifestyle."


“Although market conditions affect consumers’ real estate decisions, so do their lifestyles. People move for a number of reasons, including proximity to work and schools, along with changes in family dynamics.”


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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
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