Day to day real estate can change dramatically. However, you need to look at long term trends because when it comes to real estate, you’re not buying and selling daily. Real estate is held for the long term so those are the stats you should consider when you’re looking at buying a home.
Housing market conditions continue to follow similar trends to last year, with gains in sales throughout January. January sales activity was 863 units, nearly eight percent higher than last year’s levels.
At the same time, there have been further reductions in new listings, inventory and more declines in prices.
These adjustments are showing we’re nearing the bottom, but it is a flat bottom where we’re unlikely to see a spike upwards in the near future. A flat bottom offers opportunities. It indicates the market is becoming more balanced which is positive for sellers and it is starting to make buyers a little anxious and putting pressure on them to make a decision.
“We continue to see the slow adjustment to more balanced conditions, but it will take time before that starts to translate into price stability, ” said CREB® chief economist Ann-Marie Lurie. Buyers consider buying sooner rather than later when you can still take advantage of the instability in pricing.
The decrease in inventory due to stronger sales and less serious sellers coming off the market are leading to a stronger position for sellers. If you’re looking to sell, take advantage of the lower inventory and lower competition now before part-time Realtors come back from holidays and the spring market hits flooding the market with increased inventory.
HOUSING MARKET FACTS – City of Calgary, February 3, 2020
- Detached sales in January improved by six percent, thanks to growth in all districts except the North East.
- New listings declined by nearly 11 percent 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 percent 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 percent 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 percent.
- Improving sales were met with gains in new listings, causing inventories to increase by 12 percent 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 percent compared to last year.
- Despite slower sales in the South and Southeast district, city-wide attached sales improved by four percent. At the same time, new listings eased by nearly 18 percent, causing inventories to decline by ten percent.
- 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 percent compared to last year’s levels.
For the detailed market statistics from the Calgary Real Estate Board for January 2020 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.