CREB® January 2020 Statistics

Media release: 2020 opens with a slight gain in sales  

City of Calgary, February 3, 2020 – 

Housing market conditions continue to follow similar trends to last year, with gains in sales.

At the same time, there have been further reductions in new listings, inventory and more declines in prices.

January sales activity was 863 units, nearly eight per cent higher than last year’s levels. While sales remained well below January activity recorded before 2014, they remain consistent with activity recorded over the past five years.

“A persistent slowdown in the energy sector has resulted in a reset in many aspects of our economy. This includes the housing market,” said CREB^® chief economist Ann-Marie Lurie. 

“We continue to see the slow adjustment to more balanced conditions, but it will take time before that starts to translate into price stability.”

Citywide unadjusted benchmark prices were $417,100 in January. This is slightly lower than the previous month and nearly one per cent lower than last year’s levels. 

Benchmark prices eased, but there were some modest improvements in both the average and median prices. This is likely a reflection of some changes in the distribution of sales.  

HOUSING MARKET FACTS

Detached

• Detached sales in January improved by six per cent, thanks to growth in all districts except the North East. 
• New listings declined by nearly 11 per cent due to pullbacks in all areas except the City Centre and the North districts. Combined with adjustments in sales, this caused inventories to ease by 15 per cent citywide.
• Reductions in supply and gains in sales supported reductions in the months of supply from nearly six months last year to just under five months this January. 
• Detached benchmark prices eased by nearly one per cent compared to last year. However, the only two areas to record notable year-over-year declines were the City Centre and West, with price declines exceeding three per cent.

Apartment

• Improving sales were met with gains in new listings, causing inventories to increase by 12 per cent compared to last year. 
• The gain in inventories prevented any significant adjustment in the months of supply, which remained elevated at nine months.
• The persistent oversupply continued to weigh on benchmark prices, which eased compared to last month and declined by two per cent compared to last year.

Attached

• Despite slower sales in the South and South east district, city-wide attached sales improved by four per cent.  At the same time new listings eased by nearly 18 per cent, causing inventories to decline by ten per cent.
• Improving sales and a drop in inventory helped the months of supply to dip below seven months, a significant improvement compared to last year’s level of nearly eight months.
• While this segment is trending toward more balanced conditions, persistent oversupply continues to weigh on prices, which trended down over the previous month and eased by over one per cent compared to last year’s levels.

REGIONAL MARKET FACTS

Airdrie

• Improving sales and easing inventories helped push the months of supply down to 4.7 months. This represents levels that are consistent with longer-term trends and reflects relatively balanced conditions.
• The improvements in the supply relative to demand have started to generate much more stability in prices, which have remained comparable to last month and slightly higher than last year’s levels.

Cochrane

• January recorded a significant gain in sales and a significant drop in new listings. This resulted in a drop in the months of supply to four months, a significant improvement from the 14 months recorded last January.
• If the improvements continue, this should start to support price stability. However, the recent change has not yet impacted prices, which remain nearly three per cent lower than last year’s levels.

Okotoks

• Sales activity in town improved to levels consistent with longer-term trends. The improvement in sales helped offset the slight rise in new listings, helping reduce inventories and bringing the months of supply down to levels more consistent with balanced conditions.
• The steady reduction in oversupply in this market is helping to generate more stability in prices. In January, benchmark prices remained comparable to levels recorded last year.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

The blog post CREB® January 2020 Statistics was originally published to https://sellerdirect.com

Calgary Real Estate Forecast 2020

Media release: Calgary’s housing market expected to support more stable conditions in 2020Calgary, Jan. 14, 2019 – Since the oil price crash, Calgary has faced job losses, wage reductions and tightening national housing policy. These factors have all contributed to the slower sales environment, excess supply and citywide price adjustments of more than 10 per cent.

However, as Calgary moves into the sixth year of this cycle, there are indications of adjustments to these conditions throughout the housing market. 

“Job growth, combined with recent easing in mortgage rates and price declines, is starting to bring some purchasers back into the lower end of the market,” said Ann-Marie Lurie, CREB^® chief economist.

“We are seeing more transactions in the $500,000-and-below price point for residential homes.”

The shifts in consumers’ preference toward lower-priced product is expected to continue at the cost of persistent weakness in the higher end of the market. However, as the under-$500,000 market reflects a larger share of total activity, the gains in this sector will outweigh the losses from the higher end, resulting in modest growth in sales and a reduction in downward pressure in prices.

The current housing market conditions are different from what was recorded prior to 2014. We are settling into a new normal of slower sales, supply choice, limited price growth and a cautious consumer. 

“Whether you are a buyer or seller, having all the facts, strategies and data is critical to ensuring you get into the right home, or sell your existing home, in an appropriate time frame,” said Alan Tennant, CREB^® CEO.

“A REALTOR^® can guide a homebuyer or seller through the process and help avoid the guess work.” 

Click here for the full CREB^® 2020 Forecast Calgary and Region Yearly Outlook report.

The post Calgary Real Estate Forecast 2020 was originally seen on https://www.sellerdirect.com

CREB® November 2019 Statistics

Calgary housing market still favours the buyer

City of Calgary, December 2, 2019 – Year-to-date residential sales in the city remain just above last year’s levels due to improvements in the attached sector so far this year.

However, November sales activity eased over last year’s levels, mostly due to pullbacks in the apartment sector. 

Meanwhile, new listings eased enough relative to sales to cause inventories to ease and the amount of oversupply to come down slightly compared to last year’s levels.

“Achieving more stable conditions will take time. Sales activity has been settling in at lower levels and is likely being influenced by the economic conditions and uncertainty weighing on our market,” said CREB^® chief economist Ann-Marie Lurie.

“While the amount of supply in the market continues to ease, the persistent oversupply continues to weigh on prices.”

As of November, the citywide unadjusted benchmark price was $419,100. This is just below last month’s levels and two per cent lower than last year’s levels. 

Market conditions continue to vary depending on price, location and product type. For example, prices have ranged from a year-to-date decline of nearly eight per cent for row product in the East district to a two per cent increase for semi-detached product in the North district.

Larger price declines are often caused by high supply in the new-home and resale markets relative to demand.

HOUSING MARKET FACTS

Detached

• Detached sales improved in November over last year’s levels, mostly due to growth in the $400,000 – $500,000 range. However, sales in November and overall activity remain low by historical standards.
• Despite some recent gains in sales activity, year-to-date sales remain comparable to last year’s levels and 20 per cent below longer-term trends. However, detached sales have improved in both the North West and South districts this year.
• Improving sales, combined with further declines in new listings, helped reduce inventories in this sector compared to levels recorded last year. However, supply levels remained elevated based on seasonal comparisons.
• Like some of the other sectors, the detached market is slowly moving toward more balanced conditions. However, it is still oversupplied, and this trend continues to weigh on prices.
• The detached unadjusted benchmark price was $481,500 in November, slightly lower than last month’s levels and two per cent below last year’s prices. 

Apartment

• Apartment sales pulled back this month, causing year-to-date sales to remain comparable to last year’s levels and 21 per cent below long-term averages. 
• The monthly decline in sales was mostly driven by pullbacks in the City Centre, North West and South East districts. However, on a year-to-date basis, sales activity improved in the North, West and South East districts.
• New listings rose across most districts, causing city-wide inventory gains this month. Much of the gains were a result of a rise in new-home listings filtering into the resale market. Despite the monthly shift, year-to-date new listings and inventories remain lower than last year’s levels.
• Weaker sales, combined with rising inventories, pushed November months of supply to over seven months. This is higher than last year’s levels of more than five months. 
• Persistent oversupply in this sector caused prices to ease. The year-to-date benchmark price declined by more than two per cent.

Attached

• Year-to-date sales remain more than six per cent higher than last year’s levels and just below long-term averages.
• New listings eased this month compared to last year and sales improved.  Inventories continue to ease from the monthly highs recorded last year. While the attached market remains oversupplied, the market continues to improve over last year’s levels.
• November semi-detached prices eased by two per cent compared to last year. The largest year-over-year declines occurred in the City Centre district. 
• Row prices eased by nearly four per cent compared to last year. Annual declines ranged from more than seven per cent in the North East district to nearly two per cent in the North West and East districts.

REGIONAL MARKET FACTS

Airdrie

• Sales activity continue to improve in November compared to last year. This caused year-to-date sales to rise to 1,146 units, an increase over last year and consistent with long-term averages. 
• The rise in sales continued to be met with a pullback in new listings, resulting in inventory declines. This helped reduce the months of supply and November levels are much closer to balanced conditions.
• Easing oversupply has helped reduce the downward pressure on prices this month. However, it was not enough to offset earlier declines. The year-to-date benchmark price in Airdrie was $332,345, three per cent below last year’s levels.

Cochrane

• November sales eased compared to the previous year, but it was not enough to offset earlier gains, as year-to-date sales remained just above last year’s levels. 
• The notable adjustment this month was in new listings, which eased enough to offset any declines in sales. This caused further inventory reductions compared to last year. While the months of supply did not shift much this month, year-to-date levels have eased from the previous year and remain just above longer-term averages.
• Despite supply reductions, the market remains oversupplied, which continues to weigh on prices. In November, prices the benchmark price was $394,200, lower than last month and more than four per cent below last year’s levels.

Okotoks

• November sales continued to improve over the low levels of activity recorded last year. The steady gains have caused year-to-date sales to rise above last year’s levels but remain below longer-term averages.
• Inventory levels have also been easing, thanks to a rise in sales and reduction in new listings. While the market remains oversupplied, these adjustments are supporting moves toward more balanced conditions.
• Prices in this market have been slower to adjust. In November, the unadjusted benchmark price was $412,100, lower than last month and over two per cent lower than last year. 

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

CREB® November 2019 Statistics was originally published to https://sellerdirect.com/

CREB® September 2019 Statistics

Media release: Shifting to stability

City of Calgary, October 1, 2019 – 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,” said CREB^® chief economist Ann-Marie Lurie, noting 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. 

Despite improving sales and reductions in inventory, the overall market remains oversupplied. This continues to weigh on prices.

“While housing demand is modestly improving, sales activity remains relatively weak,” said Lurie. “The market is moving toward more stable conditions, but this is mostly related to supply adjustments in the city.”    

September inventory levels are still elevated at 6,889 units, but this figure represents a decline of 13 per cent compared to last year. The months of supply in the Calgary market currently sits at five months. These conditions continue to favour the buyer, but not to the same degree seen at this time last year.

September’s citywide unadjusted benchmark price of $424,900 is two per cent lower than last year’s levels.

HOUSING MARKET FACTS

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 five per 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.

REGIONAL MARKET FACTS

Airdrie

• Conditions in the resale market continue to show signs of growth. Sales activity improved in September, pushing year-to-date sales up by nearly three per cent. New listings eased, which helped reduce inventory in the market.
• The market remains slightly oversupplied, but the months of supply is edging down from last year’s high levels. This is supporting more stability in monthly price movements. As of September, the unadjusted benchmark price was nearly two per cent lower than last year’s levels.

Cochrane

• Sales in the area continue to improve and year-to-date levels remain the third-highest on record. The area faces fewer challenges with demand than the Calgary market, but elevated inventories continue to weigh on prices.
• Inventories are starting to trend down. If this continues, the market should move into more balanced conditions and, eventually, support some price stability.

Okotoks

• Sales activity continues to recover from the low levels recorded last year. Improving sales and easing new listings are causing year-over-year inventory declines and reducing oversupply in the market.
• The market has been trending into balanced conditions, but prices have been slow to react.  Year-to-date benchmark prices remain just over four per cent lower than last year’s levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

The post CREB® September 2019 Statistics See more on: Seller Direct Real Estate

CREB® August 2019 Statistics

Media release: Sales activity increase led by lower-priced homes

Sales activity increase led by lower-priced homes

City of Calgary, September 3, 2019 – Increased sales and easing new listings reduced housing inventories in August. Sales were primarily driven by homes priced below $500,000.

“Employment numbers have been improving, but mostly in industries that are traditionally lower paid,” said CREB^® chief economist Ann-Marie Lurie. “This is contributing to the shift that we are seeing in the housing market, with growth being limited to product priced below $500,000.” 

Rising sales for homes priced under $500,000 offset sales declines in the higher price ranges. This caused August sales to improve by six per cent compared to last year. 

Sales activity improved for all product types. The growth was largest for apartment-style and attached properties. 

Attached sales increased for the sixth consecutive month compared to the previous year. This is also the only property type with year-to-date sales higher than last year’s levels. 

New listings continued to ease this month, which caused inventory to decline. This is helping the market shift toward more balanced conditions.

The amount of downward pressure on prices is also easing. At $426,000, the unadjusted citywide benchmark price this month remained comparable to last month, but 2.6 per cent lower than last year’s levels.

Despite improving sales and reductions in inventory, housing market recovery will take time. Inventory levels remain elevated and sales activity is still well below historical norms. The market continues to favour the buyer, with over four months of supply.

HOUSING MARKET FACTS

Detached

• Year-to-date detached sales remain just below last year’s levels, but sales improved in the South and North West districts this month.  
• Citywide growth has been driven by homes priced under $500,000. Meanwhile, easing sales and elevated inventories among homes priced above $500,000 have increased the months of supply, pushing it further into buyers’ market territory.
• Benchmark prices in August ranged from a year-over-year decline of over five per cent in the South district to a decline of nearly one per cent in the South East.    

Apartment

• For the second month in a row, sales activity improved for apartment-style homes, but these gains were met with a rise in new listings. This prevented any significant adjustments to inventory levels and kept the months of supply elevated.
• Sales activity remains just below last year’s levels. On average, the amount of inventory in the market this year has eased compared to last year.
• Citywide benchmark prices in August eased compared to last year, but the East, South East and North East districts recorded modest gains. Despite those gains, prices remain well below 2014 highs.

Attached

• For the sixth consecutive month, year-over-year attached sales improved in the city. This has resulted in year-to-date sales of 2,665 units, nearly a five per cent increase compared to the previous year. At the same time, new listings continue to ease, causing further reductions in inventory.
• The months of supply have moved from over six months at this time last year to under five months in August.
• These improvements have supported some monthly gains in benchmark prices, but August benchmark prices remain 2.6 per cent below last year’s levels.

REGIONAL MARKET FACTS

Airdrie

• Despite a year-over-year decline in sales activity this month, year-to-date sales sit just above last year’s levels. Unlike Calgary, most of the growth here has been driven by gains in the detached sector. Year-to-date new listings have eased by 13 per cent and inventories have edged down relative to last year.
• A general trend toward more balanced conditions has eased downward pressure on prices. The benchmark price was $334,600 in August – 1.8 per cent below last year’s levels.

Cochrane

• Fuelled by reductions in new listings and stable sales, inventories continue to trend down. This has supported some easing in the months of supply, which dropped from nearly eight months in August of last year to five months this year. 
• Reductions in oversupply have supported more stability in monthly prices. The benchmark price was $408,000 in August, nearly four per cent below last year’s levels.

Okotoks

• Improving sales in August contributed to year-to date sales of 373 units, slightly higher than last year’s levels, but still below long-term averages. The number of new listings continues to ease. This is causing inventories to decline and reducing the months of supply.
• Months of supply dropped from nearly 10 months last year to under five months this August. Despite this reduction in oversupply, benchmark prices so far this year have remained over four per cent below last year’s levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

The article CREB® August 2019 Statistics See more on: Seller Direct Real Estate

CREB® July 2019 Statistics

Media release: Sales improving and inventory declines for fourth month in a row

City of Calgary, August 1, 2019 – For the fourth consecutive month, inventories in the market declined compared to last year. This is due to the combination of improving sales and a decline in new listings. 

The market continues to favour the buyer, but a continuation in supply reduction compared to sales is needed to support more balanced conditions.

“We are starting to see reductions in supply across the resale, rental and new-home markets,” said CREB^® chief economist Ann-Marie Lurie.

“This adjustment in supply to the lower levels of demand will support more balanced conditions. It is starting to support more stability in prices. If this continues, the housing market should be better positioned for recovery as we move into 2020.”

Year-to-date sales activity remains just below last year’s levels and well below longer-term averages. However, the reduction in inventory has caused the months of supply in July to ease to 4.5 months, a significant improvement from the 5.5 months recorded last year.  

With less oversupply in the market, prices are showing some signs of stability on a monthly basis. This is causing the rate of price decline to ease on a year-over-year basis. Overall, year-to-date benchmark prices remain over four per cent below last year’s levels.

HOUSING MARKET FACTS

Detached

• Sales activity in July was slightly higher than last year’s levels, but it was not enough to offset earlier declines, as year-to-date sales remain just below last year’s levels. Despite overall declines, trends vary significantly by price range. Year-to-date sales for product priced below $500,000 have improved by 11 per cent compared to last year, while sales over $500,000 have declined by nearly 16 per cent. 
• New listings continue to ease for detached product, reducing inventory across most price ranges. This is also starting to result in year-over-year declines in the months of supply for all prices ranges except homes over $1 million. 
• Adjustments in sales and inventories also vary significantly by district. Year-to-date sales have declined across all districts except the North West and South districts. Easing inventories have not occurred across all districts, with year-over-year July inventory gains occurring in both the City Centre and West districts. 
• Buyers’ market conditions persist, with detached benchmark prices at $488,400 in July. This is over three per cent lower than last year’s levels. Price declines range from a high of 5.7 per cent in the South district to a low of 1.4 per cent in the North East district.

Apartment

• Despite improvement in July, year-to-date sales for apartment condominiums eased by over four per cent and remain well below longer-term averages.
• Available rental supply and ample selection in the new-home sector have impacted sales in the resale market. However, inventories continue to adjust, reducing the oversupply in this sector. 
• With conditions favouring the buyer, prices continue to edge down. However, year-to-date benchmark price declines are not occurring across all districts, with modest gains occurring in the North East district. 

Attached

• The attached sector is the only sector with recorded growth in year-to-date sales, up nearly four per cent. The affordable nature of this product, relative to detached, has likely supported some of these gains. 
• The number of new listings continues to ease. This is causing inventory declines and reductions in oversupply. Like the other sectors, this segment continues to favour the buyer, preventing any significant changes in prices.
• Both row and semi-detached prices remain over three per cent lower than last year’s levels and well below historical highs. Attached price declines have been the highest in the City Centre district at over five per cent.

REGIONAL MARKET FACTS

Airdrie

• For the fifth consecutive month, year-over-year sales improved in Airdrie. Year-to-date sales reached 757 units, over three per cent higher than last year. Improving sales combined with declines in new listings have resulted in less inventory in the market compared to last year. This market is moving toward balanced conditions.
• Oversupply is easing, but July benchmark prices remain over three per cent below last year’s levels. There are steeper price declines occurring in the higher density sectors of the market.

Cochrane

• Year-to-date residential sales in Cochrane totalled 376 units, slightly lower then last year’s levels. New listings have been in decline, resulting in the fourth consecutive month with a year-over-year decline in inventory. 
• This has caused the amount of oversupply to ease, supporting more stability in pricing. As of July, the benchmark price in Cochrane is $408,300, over four per cent lower than last year’s levels.

Okotoks

• Total residential sales in Okotoks have totalled 321 units so far in 2019. This is similar to last year, but below long-term trends. New listings continue to trend down, supporting inventory declines and easing in the months of supply. 
• As the amount of oversupply in the market eases, prices have been showing signs of improvement compared to the previous month. However, year-to-date benchmark prices remain over four per cent lower than last year’s levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

CREB® July 2019 Statistics was first published on https://www.sellerdirect.com

CREB® Mid-Year Market Update

Mid-year market update: Modest supply reductions may signal shift to balanced housing market by end of year

City of Calgary, July 22, 2019 – A struggling energy sector continues to weigh on the overall economy. Unemployment levels remain elevated and income growth remains weak. 

However, Calgary continues to benefit from stable population growth fuelled by international migration and natural increases.

“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” said CREB^® chief economist Ann-Marie Lurie. Supply continues to adjust in the resale market, as well as the new-home and rental markets. Reductions in housing supply are expected to move the resale market toward more balanced conditions and support price stability by the end of the year.

“While supply declines are expected to support price stability by the end of the year, on an annual basis, prices are expected to remain lower than levels recorded last year across all property types,” said Lurie.

Conditions throughout specific price ranges and product types will continue to vary. Growth in the attached and detached markets will continue to be fuelled from the lower end of the market, but apartment activity will continue to face challenges due to the competition from new product and rentals.

Nonetheless, supply declines will help to better position the broader market moving into 2020.

Three things to know about the 2019 mid-year forecast:

• Stable lending rates and the new shared-equity mortgage program may support modest improvements in housing demand in the second half of the year.
• Concerns regarding slowing global growth and impacts on commodity prices may affect consumer confidence and housing sales.
• Slowing economic activity in the province may result in weaker job growth than the current forecast suggests.

For more information, please refer to CREB^®‘s 2019 Economic Outlook & Regional Housing Market Mid-Year Update, available here.

The following blog post CREB® Mid-Year Market Update Find more on: Seller Direct Real Estate Blog

CREB® June 2019 Statistics

Media release: Oversupply is slowing, but a buyers’ market remains

City of Calgary, July 2, 2019 – New listings coming onto the market continued to decline in June, which is helping to reduce the oversupply of homes in Calgary.

Year-over-year, new listings saw a decrease of nearly 19 per cent. Sales activity slowed this month compared to last year by six per cent, but the pullback in new listings was enough to cause inventories to fall by 13 per cent compared to last year’s elevated levels.

“So far, the housing market has generally behaved as expected this year. Sales activity remains just below last year’s levels, prices have eased and supply is starting to adjust to the lower level of sales,” said CREB^® chief economist Ann-Marie Lurie. 

“However, it is mostly product priced under $500,000 that is trending towards more balanced conditions.” 

While the market still favours the buyer – with 4.3 months of supply – the amount of oversupply has eased and is slowing the decline in prices. As of June, the benchmark price in the city was $425,700, nearly four per cent below last year’s levels and comparable to unadjusted prices recorded last month.

HOUSING MARKET FACTS

Detached

• Detached sales in June declined by nine per cent compared to last year, causing year-to-date sales to ease by nearly three per cent. The decline in sales was mostly driven by homes priced above $500,000.
• Detached homes priced under $500,000 have recorded improvements in sales and oversupply reductions. The tightening in the lower end of the market will likely start to support price growth in this sector of the market.
• Despite city wide year-to-date sales declines, activity improved in both the South and North West districts of the city. Sales did ease across other districts, but in some of the most affordable districts (North East and East) supply-to-demand ratios are improving compared to last year. This is pushing those markets toward more balanced conditions.
• Despite slower sales activity, the amount of inventory declined by nearly 18 per cent. The reduction in inventories occurred throughout all districts.
• Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices nearly four per cent below last year’s levels. 

Apartment

• Apartment condominium sales eased in June, causing year-to-date sales to total 1,292 units. This is over seven per cent below last year’s levels. Over the same time frame, new listings eased by over 15 per cent, helping reduce some of the resale inventory in the market.
• Resale inventory levels have declined, but the months of supply continue to remain elevated at 6.8 months. Combined with elevated inventories in the competing rental and new-home markets, this continues to weigh on resale pricing. 
• June’s benchmark price was $250,200, three per cent below last year’s levels. This is resulting in a total price adjustment of over 17 per cent since 2014.

Attached

• Unlike other property types, sales activity for attached product continued to improve in June. Year-to-date sales total 1,955 units, nearly three per cent above last year’s levels. Improvements were driven mostly by growth in demand for semi-detached product. Attached sales improved across all districts except the North West and West.
• New listings have eased compared to last year, which is starting to reduce oversupply in the market. Like all other sectors, the attached market remains oversupplied and this is impacting prices.
• June’s benchmark prices were $399,700 for semi-detached and $286,300 for row product. Respectively, this represents year-over-year declines of 3.3 and 5.4 per cent. 

REGIONAL MARKET FACTS

Airdrie

• After the first half of the year, sales activity remained relatively stable. New listings have declined, which is helping to reduce the amount of inventory on the market and move towards more balanced conditions.
• The market may be trending towards more balanced conditions, but oversupply continues to weigh on prices. The benchmark price was $334,800 in June, comparable to last month, but nearly three per cent below last year’s levels. 

Cochrane

• Sales activity in the area remained relatively stable compared to last year and consistent with longer-term trends. New listings have eased, helping to reduce inventory in the market and the amount of oversupply.
• Despite some recent adjustments, the market continues to favour the buyer, placing downward pressure on prices. The benchmark price was $404,000 in June, similar to last month and over five per cent below last year’s levels.

Okotoks

• Sales have remained stable compared to last year, but they are still below longer-term averages. However, new listings are starting to adjust, which is continuing to push down inventory levels and cause the market to move towards more balanced conditions.
• As the market moves towards more balanced conditions, this should help create more stability in pricing. As of June, benchmark prices were $414,900, 1.6 per cent higher than last month, but still 4.1 per cent below last year’s levels.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

CREB® June 2019 Statistics is available on https://www.sellerdirect.com/

May 2019 CREB® Statistics

Media release: Sales activity improves for second consecutive month 

City of Calgary, June 3, 2019 – Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12 per cent compared to last year.

Improving sales relative to inventory levels caused the months of supply to ease to just under four months. While still oversupplied, this is an improvement from the five months of supply recorded last May.

Citywide sales in May totalled 1,921 units, 11 per cent higher than last year’s levels. However, sales remain 10 per cent below longer-term trends. This sales growth was primarily driven by homes priced under $500,000.

“While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes,” said CREB^® chief economist Ann-Marie Lurie.

“This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.”

Citywide benchmark prices totalled $423,100 in May. Prices have shown some signs of improvement month-over-month but remain four per cent lower than 2018 levels. 

HOUSING MARKET FACTS

Detached

• 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. 

Apartment

• 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

• 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

Airdrie

• 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.

Cochrane

• 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.

Okotoks

• 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.

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May 2019 CREB® Statistics See more on: https://sellerdirect.com/

CREB® April 2019 Statistics

Media release: April brings a slight inventory decline 

City of Calgary, May 1, 2019 – There have been no significant changes occurring in sales activity, but the number of new listings coming onto the market continues to ease relative to 2018 levels. 

The decline in new listings was enough to start chipping away at overall inventory levels, which have eased slightly compared to last year.

The slight adjustment in supply levels has helped support further reductions in the months of supply, which was 4.6 months in April. While this level still represents oversupply in our market, it does reflect improvement from the nearly seven months of supply that we saw at the start of the year.

“Demand remains relatively weak in the resale market. However, if supply levels continue to adjust, this could help reduce the amount of oversupply and eventually support some price stability,” said CREB^® chief economist Ann-Marie Lurie.

As of April, the total residential benchmark price in Calgary was $415,900. This is slightly higher than last month, but still nearly five per cent lower than last year’s levels.

Citywide sales were 1,547 units in April, two per cent higher than last year’s levels. Year-to-date sales remain nearly six per cent lower than last year and are 26 per cent below longer-term averages.

“Sales have been improving mostly in the lower price ranges, causing tighter supply conditions in that segment.  This will likely have a different impact on price trends in the lower price ranges depending on location,” said Lurie.

HOUSING MARKET FACTS

Detached

• 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.

Apartment

• 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

• 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

Airdrie

• 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.

Cochrane

• 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.

Okotoks

• 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.

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The article CREB® April 2019 Statistics See more on: https://www.sellerdirect.com

CREB® March 2019 Statistics

Media release: Oversupply persists despite improved sales activity for affordable product

City of Calgary, April 1, 2019 –

March saw a modest decline in city wide sales activity compared to last year. However, sales have been rising for more affordable product in the detached and attached sectors.

Shifts in the lower end of the market have not outweighed easing across the higher priced product. First-quarter sales dropped to 3,108 units. This is nine per cent below last year and 28 per cent below typical levels of activity.

Price declines and relatively slow sales activity are impacting the number of new listings. For the second consecutive month, new listings eased compared to last year’s levels and long-term trends, but it was not enough to prevent inventory growth.

“If new listings continue to slow compared to sales, it could start to help with the persistent oversupply scenario weighing on our housing market,” said CREB^® chief economist Ann-Marie Lurie.

“However, inventory is still high. It will still take time for our market to transition towards more balanced conditions and stable pricing.”

With 6,595 units in inventory in March, the months of supply eased to five months. This is an improvement over the past several months, but still considered oversupplied when compared to levels traditionally recorded in March.

The oversupply in the Calgary market has caused further price declines this month. As of March, benchmark prices eased to $413,900, five per cent below last year’s levels and just below levels recorded last month.

 

HOUSING MARKET FACTS

Detached

• First-quarter sales declined by nearly nine per cent compared to last year and 30 per cent below typical levels of activity.
• Detached sales have varied depending on location and price range, with gains occurring mostly in the most affordable price ranges of each district.
• In March, citywide detached sales improved for all homes priced under $500,000.
• Despite easing in new listings, inventories increased over last year’s levels, pushing months of supply to the highest level ever recorded for the month of March. When considering activity by districts, the North East and East districts have seen the level of oversupply ease compared to last year.
• Oversupply in the detached sector continues to weigh on prices across all districts in the city. Citywide detached benchmark prices eased 5.4 per cent compared to last year for a total price of $475,800.

 

Apartment

• Resale condominium sales fell by 14 per cent in March, causing first-quarter sales to total 464 units, 17 per cent below last year. The decline did not occur in all districts, as sales activity improved in both the North and West districts of the city. Despite some signs of improvements in those districts, activity remains well below long-term trends.
• Supply in this sector is showing signs of adjusting to the lower levels of demand. New listings eased again this month compared to last year’s levels. Unlike other property types, this adjustment is impacting inventories. Inventory in March was 1,488 units, 12 per cent below last year’s levels.
• The months of supply has edged down from levels recorded earlier in the year, but due to weak sales, it is elevated compared to last year’s levels.
• Citywide, apartment condominium prices fell by 0.7 per cent from last month and 2.6 per cent over last year. However, in both the North East and South East districts, prices posted a modest gain over last year.

 

Attached

• There was a slight uptick in attached sales in March due to improvements in both the semi-detached and row sectors. Despite the gains in March, year-to-date sales remain four per cent below last year’s levels and 16 per cent below long-term averages.
• Year-to-date sales have eased, but there have been improvements in the South and South East districts.
• Despite some improvements in sales, citywide months of supply remain elevated.
• Prices continued to trend down for semi-detached product. March’s benchmark price was $391,000, nearly six per cent below last year’s levels and 0.4 per cent below last month’s price. However, the North district saw different results, as tightening months of supply supported a modest gain in prices compared to both last month and last year.
• Row prices in March remained relatively flat compared to February levels, but remain more than four per cent below last year’s levels and over 13 per cent lower than previous highs.

 

REGIONAL MARKET FACTS

Airdrie

• First quarter sales were seven units less than last years levels, but the number of new listings also declined by 47 units over the same period. This prevented any significant change in inventory levels in the market. However, the months of supply remained elevated averaging five months after the first quarter.
• The persistent oversupply in the market has weighed on prices. City-wide benchmark first quarter prices eased by 1.7 per cent compared to the previous quarter and remain 4.6 per cent below levels recorded in the first quarter of last year. While prices eased across all property types, the largest declines occurred in the apartment sector.

 

Cochrane

• Cochrane’s first quarter sales and new listings were 114 units and 330 units, respectively, both declining over last years levels. However, the relatively steeper pull-back in sales caused inventories to rise and months of supply to average eight months in the first quarter.
• Persistent oversupply in the market has weighed on prices. After the first quarter benchmark prices eased by 1.6 per cent compared to last year and 1.5 per cent compared to the previous quarter. However, year-over-year declines were higher in the attached sector at 2.7 per cent compared to the detached sector which was 1.5 per cent.

 

Okotoks

• In the first quarter both sales and new listings slowed compared to last year. However, the pull-back in new listings was not enough to reduce inventory levels in the market and months of supply remained elevated averaging 7.7 months in the first quarter.
• The persistent oversupply has impacted prices. The detached benchmark price averaged $413,733 in the first quarter a 4.8 per cent decline compared to last year and 3.8 per cent below the fourth quarter of 2018. Price declines were slightly higher in the attached sector with the benchmark price totaling $376,433 for the first quarter a five per cent decline over the previous year.

 

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CREB® March 2019 Statistics Read more on: https://www.sellerdirect.com

CREB@ February 2019 Statistics

Media release: Housing market feels the chill as oversupply continues 

City of Calgary, March 1, 2019 – The effects of Calgary's economic climate continue to create weak sales activity and elevated inventory in the city's housing market. 

As a result, prices are being affected.

“It is not a surprise that slowing activity in the housing market has persisted into February,” said CREB® chief economist Ann-Marie Lurie.

“There has been no substantial change in the economic climate and concerns regarding potential layoffs in the energy sector are weighing on confidence.”

As of February, citywide benchmark prices were $414,400. This is nearly five per cent below last January, slightly lower than last month’s figures and over 10 per cent below highs recorded in 2014.

While the market remains oversupplied, slower sales and price declines do appear to be influencing sellers. New listings this month eased by eight per cent compared to last year for a total of 2,211 units. However, the 976 sales this month were not enough to substantially impact inventories levels, which remain elevated at 5,885 units.

HOUSING MARKET FACTS

Detached

• After the first two months of the year, detached sales were 1,079 units. This is 13 per cent below last year’s levels and nearly 30 per cent below long-term averages. Sales eased across all city districts except the North West. Activity remained well below normal levels across all districts of the city.
• The adjustments in new listings ranged from a 15 per cent increase in the North West district to a decline of 23 per cent in the North district. Overall, year-to-date new listings were 2,544 units, nearly two per cent below last year’s levels.
• Despite some adjustments in new listings, average inventories in the detached sector so far this year rose by 25 per cent compared to last year. However, some of the most affordable detached areas, including the North East and East districts, have seen inventories fall compared to last year.
• With detached months of inventory remaining above five months, prices continue to trend down. In February, citywide detached benchmark prices were $475.600, 0.2 per cent below last month and over five per cent below levels recorded last February.

Apartment

• Despite the relative affordability of apartment product, sales activity remained slow with 149 sales.
• Unlike the detached sector, the seventh consecutive year-over-year decline in new listings is starting to have an impact on inventory levels.
• In February, inventory levels totalled 1,301 units. This is nine per cent below levels recorded last year. Inventories did ease, but slow sales in February kept the months of supply near nine months.
• Apartment condominium prices were $252,300 in February, a 1.7 per cent decline compared to last year, but similar to levels recorded last month. Apartment condo prices have fallen by 16 per cent over the previous monthly highs.
• Citywide benchmark prices have eased, but some districts of the city have recorded modest gains. This is not enough to erase previous declines, but points toward price stability in parts of the market.

Attached

• Conditions remained relatively unchanged in the attached sector, as months of inventory remained near seven months and prices have remained unchanged from last month, but over four per cent below last year’s levels.
• Like the apartment sector, activity can vary significantly depending on location. Benchmark prices for semi-detached product eased by over five per cent compared to last year, with the steepest declines occurring in the South and City Centre districts.
• Prices slightly improved in the North district.
• Row prices declined by nearly four per cent compared to last year. Unlike the semi-detached sector, prices eased across all districts compared to last year and remain nearly 14 per cent below monthly highs.

REGIONAL MARKET FACTS

Airdrie

• Housing sales in Airdrie have totalled 150 units in 2019. This is 27 units below levels recorded from the same period last year, but comparable to the average activity occurring over the past 10 years.
• Even though new listings have eased compared to 2018, inventory levels increased to 448 units. Higher inventories and low sales activity have caused months of supply to remain elevated at five months.
• Detached prices have totalled $355,200 In February. This is over four per cent lower than the same period in 2018.

Cochrane

• Year-to-date residential sales in Cochrane remained comparable to last years levels, mostly due to gains in detached sales.
• Although new listings levels in the first two months were comparable to the same period in 2018, there were gains in inventory levels. Overall months of supply levels remained just below seven months.
• Oversupply in the market has caused year-to-date prices to decline compared to last year. On a year-over-year basis, the February detached benchmark price of $413,300 was 1.3 per cent lower than 2018 price levels. 

Okotoks

• Sales activity in the first two months of 2019 represents a decline of 30 units over last year. New listings in the market also eased compared to last year, but there were still far more new listings than sales activity. This is causing inventories to rise and months of supply to remain elevated at ten months.
• Persistent oversupply has continued to weigh on benchmark prices with detached home prices at $411,500 in February. This is 1.3 per cent lower than last month and 4.6 per cent lower than the same period last year.

Click here to view the full City of Calgary monthly stats package.

Click here to view the full Calgary region monthly stats package.

CREB@ February 2019 Statistics Read more on: Seller Direct Calgary

CREB® January 2019 Statistics

Media release: New year kicks off with slow sales

City of Calgary, February 1, 2019 – 

As economic challenges linger into 2019, housing markets remain on a sluggish pace.

January sales totalled 804 units, 16 per cent below last year and 21 per cent below long-term averages for the month.

"The slow start to the year does not come as a surprise, as concerns about job losses and the state of the energy sector weigh on consumers. We anticipate that the slow market conditions will persist throughout much of the first quarter," said CREB^® chief economist Ann-Marie Lurie. 

The number of new listings entering the market remained comparable to last year, but those levels far surpassed sales activity. This is resulted in further gains in inventory levels. Elevated inventories relative to sales caused months of supply to rise to nearly seven months. 

Persistent buyers' market conditions have continued to impact prices. Citywide residential benchmark prices eased to $414,800 in January. This is nearly one per cent lower than December figures and four per cent below January 2018 levels.

HOUSING MARKET FACTS

Detached

• Detached sales eased by 17 per cent compared to last year. However, declines did not occur across all districts, as sales activity improved in both the North West and North East districts. The most significant sales declines occurred in the North and West districts of the city.
• New listing rose across all districts except the North East, North and South East districts. Only the North East district recorded easing months of supply compared to last year.
• Detached benchmark prices totalled $476,500, a one per cent decline compared to December and over four per cent lower than last January.
• Prices eased across all districts. The largest year-over-year declines occurred in the South, North West and City Centre districts.

Apartment

• Apartment sales totalled 126 units in January. This is 13 per cent below last year and over 20 per cent below long-term averages for the month. 
• Slower sales and lower new listings helped inventory levels ease. Currently, there are 1,173 units in inventory, which is nine per cent lower than January 2018 levels.
• Despite some adjustments in inventory, months of supply remained elevated at nine months, impacting prices. While prices remained relatively flat compared to last month, they declined by two per cent compared to levels from last January.
• Prices remain well below previous highs, but there were some price improvements compared to last year in both the North East and South East districts.

Attached

• Sales declined for both row and semi-detached product types. New listings rose, causing inventories to rise for both product types. 
• With the attached sector firmly reflecting buyers' market conditions, prices eased by over four per cent for a January benchmark price of $313,700.
• Semi-detached prices eased by nearly five per cent compared to last year for a total of $393,100. The steepest declines occurred in the City Centre and South districts, with adjustments of over six per cent.
• Row prices declined by four per cent compared to last year for a total of $284,300. All districts recorded price declines, but the most notable decline occurred in the City Centre, where prices were nearly eight per cent lower than last year.

REGIONAL MARKET FACTS

Airdrie

• January 2019 sales in Airdrie totalled 65 units. This is just below levels recorded last year, but comparable to the average activity occurring over the past ten years.
• Despite easing new listings compared to last January, inventory levels increased to 422 units. Higher inventories given the sales activity caused months of supply to remain elevated at 6.5 month. Persistently high levels of supply relative to demand continue to weigh on prices.
• Detached prices totalled $354,300 in January – 0.5 per cent below last month's price and nearly five per cent lower than January 2018.

Cochrane

• Due to a pullback in Row sales, January sales activity slowed compared to last year and longer-term trends. At the same time new listings eased causing inventory gains and the months of supply to rise to nearly 14 months.
• The oversupply in the market has caused prices to trend down compared to the previous month. However, on a year-over-year basis the detached benchmark price of $408,600 was relatively stable comparable to January 2018 price levels. 

Okotoks

• Sales activity in January declined over last year. While the new listings in the market also declined compared to last year, there were still far more new listings then sales activity causing inventories to rise and months of supply to remain above 10 months.
• Persistent oversupply has continued to weigh on benchmark prices with the third consecutive month-over-month decline. Detached home prices totalled $416,900 in January. This is one per cent lower than last month and three per cent lower than the same time last year. 

Click here to view the full City of Calgary monthly stats package.

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CREB® January 2019 Statistics is available on https://sellerdirect.com/

Economic challenges to affect Calgary’s housing market in 2019

Calgary, Jan. 30, 2019 –

The challenging economic climate in Calgary is expected to persist into 2019. 

Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year. 

"Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year," said Ann-Marie Lurie, CREB^® Chief Economist.

"At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year." 

There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020.

Buyers' market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease.  

While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations. 

"In this market, buyers have the advantage of choice. A REALTOR^® can help buyers find a home that best fits their lifestyle," said Alan Tennant, CREB® CEO.

"For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guess work out of the process."

Click here for the full 2019 Calgary Economic & Housing Outlook report.

Economic challenges to affect Calgary’s housing market in 2019 was originally seen on Seller Direct

Job market weakness and lending restrictions a common thread in 2018’s housing market

M

City of Calgary, January 2, 2019 – 

As oversupply continues in Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December.  

“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB^® chief economist Ann-Marie Lurie. 

“This contributed to elevated supply in the resale market, resulting in price declines.” 

December sales totalled 794 units, a 21 per cent decline over the previous year. Overall year-to-date sales in the city totalled 16,144 units. This is a 14 per cent decline over 2017 and nearly 20 per cent below long-term averages.

Inventory levels in December sat at 4,904 units. This is well above levels recorded last year and 30 per cent above typical levels for the month. Elevated resale inventories in 2018 were caused by gains in the detached and attached sectors.

Throughout 2018, the months of supply remained elevated and averaged 5.2 months. This contributed to the annual average benchmark price decline of 1.5 per cent. Price declines occurred across all product types and have caused citywide figures to remain over nine per cent below the monthly highs recorded in 2014.

“Both buyers and sellers faced adjustments in expectations this year. Sellers had to compete with more choice in the resale market, but also the new-home market,” said CREB^® president Tom Westcott.

“With less people looking for a home, it became a choice between delaying when to sell or adjusting the sale price. However, buyers looking for more affordable product did not find the same price adjustments that existed in some of the higher price ranges.” 

More information on the 2018 housing market will be released at CREB^®’s 2019 Forecast Conference & Tradeshow (www.crebforecast.com) on Jan. 30, 2019.

HOUSING MARKET FACTS

Detached

• Detached sales declined across all districts in 2018. With citywide sales of 9,945 units, activity remains 21 per cent below typical levels for the year.
• Detached inventories were higher than last year’s levels for each month of the year, including December. Slow sales caused the market to be oversupplied through most of 2018.
• Detached benchmark prices totalled $481,400 in December, a one per cent decline over last month and a three per cent decline over last year. Overall, 2018 prices declined by 1.5 per cent compared to last year.
• Prices have eased across most districts in 2018. The largest declines this year have occurred in the North East, North West and North districts. 

Apartment

• Apartment sales totalled 2,663 units in 2018. While the decline is less than other product types, levels are 22 per cent below long-term averages. 
• The apartment condominium sector has struggled with oversupply for almost three years and 2018 was no exception. 
• However, supply has been easing, as inventories this year averaged 1,584 units, one per cent below last year’s levels.
• Despite slowing supply growth, the market remained oversupplied, causing further price declines. In December, benchmark prices were $251,500, over two per cent below last year. Annually, prices have declined by nearly three per cent for a total decline of 14 per cent since 2014.
• Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts.

Attached

• Declines for both row and semi-detached product resulted in 2018 attached sales of 3,536 units, a 15 per cent decline over the previous year and 14 per cent below long-term averages.
• Slower sales activity prompted some pull-back in new listings, but this was limited to the row sector. Row new listings declined by four per cent and semi-detached new listings rose by nearly 15 per cent in 2018.
• Despite some adjustments to new listings, inventory levels remained elevated, keeping the market in buyers’ market territory and putting downward pressure on prices.
• In December, the semi-detached benchmark price totalled $397,500. This is a monthly and year-over-year decline of 0.8 and 3.8 per cent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as 2018 prices remain just below 2017 levels. Overall, annual prices remain 1.4 per cent below 2014 peak levels.
• Row prices have also been edging down. As of December, row prices were $288,400, a 1.5 per cent decline from last month and nearly four per cent below last year’s levels. Overall, 2018 prices remain two per cent below last year’s levels and nearly 10 per cent below previous highs.

REGIONAL MARKET FACTS

Airdrie

• In 2018, the Airdrie housing market was distinctly marked by oversupply and signs of buyers’ market conditions. Compared to last year, inventory levels and months of supply have been significantly higher, combined with lower levels of sales. This has led to downward pressures on the benchmark price for detached homes.
• Annual residential sales exhibited a year-over-year decline of 14 per cent and were almost 19 per cent lower than activity over the past 5 years. This consistent decline was observed across all product types.
• Supply in 2018 was at record-high levels, with new listings achieving a new year-to-date peak for most of the year. Inventories have also been continuously increasing throughout this year and are 12 per cent higher than in 2017. Months of supply have increased steadily and averaged 5.6 months in 2018.
• Persistent oversupply has resulted in a decline in Airdrie prices.  In 2018 detached benchmark prices averaged $369,042, over two percent below last year

Cochrane

• Declining by 64 units, 2018 sales in Cochrane were lower than the previous year. However, an annual count of 599 sales remains comparable to activity over the past three years. 
• In 2018 there were 1,288 new listings, the highest on record.  Elevated new listings and easing sales resulted in rising inventories and months of supply that averaged nearly 7 months.   
• Elevated supply has caused detached prices to trend down over the second half of the year, however, it was not enough to offset earlier gains.  In 2018, detached benchmark prices have remained comparable to last year.

Okotoks

• 2018 residential sales in Okotoks were 463 units, a decline over last year and comparable to 2010 activity. 
• Gains in new listings combined with slower sales resulted in rising inventory and excess supply in this market.  
• Despite increased supply and weak sales, detached home prices in Okotoks showed modest increases in 2018. The average detached benchmark price totalled $434,875, which is one per cent higher than last year.

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Job market weakness and lending restrictions a common thread in 2018’s housing market is available on Seller Direct Calgary