New Listings are Down....But So Are Prices
- A Street View Of Calgary Real Estate
May already, and we haven't even had a real shot at spring yet...Oh Calgary, it can be a love hate thing with the weather....and the real estate market.
We're entering the hot selling season. May and June are usually the two months where we sell the most homes every year in Calgary. The good news coming out of April is that the number of new listings has declined. That will chip away at the standing inventory, which will help a ton.
Not great news in the price category however....We're slightly behind March of this year, and 5% below last year at this time.
From the street view, we are seeing a crazy market. Affordable homes (which we classify as below the average price) are selling much better than anything above $500,000.00.
It's especially tough if you are in an area that has brand new builds to compete with. Inner city infills, as well as production builder inventory in the outer suburbs are beating up on the resale pricing.
People are willing to pay a premium for a new product, and even though you may have a great house, new construction will always be more desirable. You then end up needing to be aggressive against the new build prices to move your older home.
This can be a tough pill to swallow for home owners who's biggest investment is their home, compared to builders who have a less emotional tie to their product, and just care about cashflow and the bottom line.
We're still seeing declines year over year in the total number of homes sold, which needs to slow down in order to right this ship.
What we really need is an influx of jobs in this province....something that our new government has promised. Let's see if they can deliver.
The full stats package and detailed graphs are available by clicking below...Have a fantastic May!
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HOUSING MARKET QUICK FACTS
- Detached sales improved by nearly three per cent in April compared to last year, due to gains in homes priced under $500,000. However, with 930 sales, activity still remain 24 per cent below long-term averages. Recent gains were also not high enough to offset pullbacks earlier in the year, causing year-to-date sales to fall by over five per cent.
- Improving sales did not occur across all districts. In April, there was growth in the North East, North West, South and South East districts of the city. Despite some signs of sales improvement, overall sales activity remains well below 10-year averages throughout every region in the city.
- April detached inventories citywide continue to remain just above levels recorded last year. Months of supply remain relatively unchanged at four months.
- The amount of oversupply has varied significantly depending on the area of the city. Months of supply has only risen in the City Centre, South and West districts of the city.
- Despite some of the adjustments occurring in the detached sector, overall April prices remain lower than last year’s levels across all districts. Year to date, the largest year-over-year declines occurred in in the City Centre, North West and South districts.
- Despite the affordability of apartment condominiums, sales activity continues to fall across the city and in most districts. There have been 714 apartment condominium sales so far this year, the lowest level since 2001.
- The decline in new listings has started to outweigh the sales decline, causing inventories to ease. As of April, resale apartment condominium inventories totaled 1,546 units, 16 per cent lower than inventory levels last April.
- The easing inventories have also caused the months of supply to decline to just above six months. While this is still a buyers’ market, this trend could help ease the downward pressure on prices if it continues.
- Apartment condominium prices in April totalled $250,400, comparable to last month, but over two per cent below last year’s levels and nearly 17 per cent below 2014 highs.
- Attached sales activity improved compared to last year’s levels for the second straight month, almost offsetting the declines occurring in the first two months of the year. Year-to-date sales were 1,113 units, nearly one per cent below last year’s levels, and 14 per cent below long-term averages.
- Year-to-date sales have improved in all districts except the City Centre, North West and West.
- Improved sales and easing listings have helped prevent further inventory gains in this sector and overall months of supply have trended down to five months.
- Following several months of prices trending down, semi-detached benchmark prices in April rose over the previous month. However, prices remain over five per cent below last year’s levels at $395,300.
- Row prices were $284,900 in April, over five per cent below last year’s levels.
REGIONAL MARKET FACTS
- Stronger sales in March and April offset earlier declines, causing year-to-date sales to total 363 units, similar to levels recorded last year. New listings continue to decline, causing April inventories to ease compared to last year. Months of supply remain elevated at five months, but this is a notable improvement compared to last year, when months of supply was over six months.
- Rising sales and easing inventories helped prevent further price declines in April compared to March. However, overall, April prices remained nearly four per cent below last year’s levels. Prices have eased across all property types, with the largest year-to-date decline in the apartment sector at eight per cent.
- Despite improving sales in April, year-to-date sales in Cochrane eased by six per cent compared to last year. However, new listings have also eased, helping reduce some of the inventory in the market. While inventories and months of supply remain elevated, for the first time since June 2018, the months of supply fell below six months.
- Some improvement with oversupply has likely prevented further monthly declines in prices. As of April, total benchmark prices remain over three per cent below last year’s levels for a total of $415,100.
- Despite some recent improvements in sales, year-to-date sales activity slowed compared to last year. New listings have also eased, but it was not enough to prevent further inventory gains, keeping months of supply above five months.
- The amount of oversupply has impacted prices. April residential prices totalled $406,700. This is nearly four per cent below last year’s levels. Price declines were slightly higher in the attached sector, with a year-over-year decline of nearly five per cent.