June 7th! Where has the first half of the year gone? It seems we've been waiting around forever for outside activity weather. I don't want to jinx it, but it looks to finally be here.
The real estate market is going through some subtle changes as well. It may not feel like it, but things are starting to show signs of improvement. I don't want to sound the alarm bell, because this is going to be a long road to recovery, but some suble changes could solidify a market that's been on the toboggan hill for the past 5 years.
For the second month in a row, we have seen the number of homes sold in the city increase over the same month from the previous year. An added bonus is that there was a decline in the number of people putting homes on the market. This has brought the months of inventory down to 4.....still really high, but it's a step in the right direction.
From the street, the story is pretty much the same...our market is being supported by homes priced below $500,000.00. Prices have come down substantially, putting homes that were slightly above $500,000.00 now under, making them more attainable. $500,000.00 is a barrier to entry in the market, so lower prices are actually going to help get things moving in the right direction.
Great marketing, perfect pricing, and superb staging are the 3 keys to selling your home in this market. You need to create excitement with buyers when they have this much choice. Take your emotions out of the equation, and treat your home like a product for sale. Tough to do when it's your biggest asset, but that's what it takes to sell. You can't be concerned with "I need this much." It's a market...which mean market conditions drive the price....Not what you want, what you need, or what you think it's worth. Your home is only worth what someone is willing to pay.
See the detailed stats report below.
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HOUSING MARKET QUICK FACTS
- Detached sales in May totalled 1,182 units. This is a 12 per cent increase over last year, but still 13 per cent below long-term averages. The improvement in sales was driven primarily by gains in homes priced under $500,000.
- Sales activity increased across most districts in May. However, year-to-dates sales have only increased in the East, South and North East districts of the city. Citywide sales remain one per cent lower than last year’s levels.
- New listings in May pulled back significantly from previous year’s levels. Combined with an improvement in sales, this resulted in inventories declining from 4,504 units last May to 3,921 units this month. This is the first time since May 2017 that year-over-year inventories declined.
- Easing inventory and improving sales caused months of supply to ease to 3.3 months. This is still elevated compared to historical levels, but represents an improvement compared to levels from the past year.
- Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices four per cent lower than last year and seven per cent lower than 2014 highs.
- The improvement in monthly sales was not enough to offset previous declines. Year-to-date apartment sales sit at 1,030 units. This is seven per cent lower than last year and 28 per cent lower than longer-term averages. Easing sales were met with fewer new listings, reducing the market inventory. This pushed months of supply to just over five months.
- If the reduction in oversupply continues, it will eventually help limit price declines. However, this market remains oversupplied and prices continue to edge down.
- May benchmark prices totalled $246,900, 0.6 per cent lower than last month and nearly three per cent lower than last year’s levels. This is resulting in a total price adjustment of over 17 per cent since 2014.
- Attached sales activity continue to improve in May. Year-to-date sales improved by two per cent, making this the only sector to record a year-to-date improvement. Improvements occurred throughout most districts of the city, apart from the City Centre, North West and West districts.
- New listings have also pulled back relative to sales. This is causing inventories to ease compared to last year and months of supply to trend down.
- Benchmark prices remain five per cent lower than last year’s levels but have seen some modest gains on a month-to-month basis. Despite some signs of improvement, prices remain 10 per cent lower than 2014 highs.
REGIONAL MARKET FACTS
- May sales activity remained similar to last year, pushing year-to-date sales to 514 units. This is slightly higher than last year’s levels. At the same time, there has been a sharp pullback in new listings coming onto the market. This is causing inventories to decline and the market to move towards more balanced conditions.
- Despite some oversupply reduction, prices struggled to improve following declines last year. The May benchmark price in Airdrie was $331,900, similar to last month, but nearly four per cent below last year’s levels.
- Year-to-date sales in the area remain slightly slower than last year, but higher than activity recorded throughout the recession. The number of new listings is continuing to ease, which is starting to reduce inventories from the highs recorded last year.
- Supply is starting to adjust in this market, but conditions continue to favour the buyer, which is weighing on prices. May benchmark prices totalled $404,700, just below last month and over four per cent less than last year’s levels.
- Year-to-date sales of 208 units are similar to last year’s levels, but lower than long-term averages for the area. Like many other areas, new listings continue to ease, enough to chip away at inventory levels. This has caused months of supply to fall below four months.
- The reduction in the amount of supply compared to sales is helping limit any further downward pressure on prices. Overall benchmark prices of $408,200 remain five per cent lower than levels recorded last year.