Okay, don’t hate me for this and you’re welcome to disagree.
I don’t love the stampede. It is good-ish, but is it really? There are great selfies, music, and weird food but also a whole lot of lines, heat stroke, tears, and hangovers. Am I doing it wrong?
Interest rates and inflation will cost us more but without them in the world inflation would go through the roof. Canada got itself into a bit of a mess and it seems like higher rates are one of the only ways out. Don’t forget to vote friends.
Back to stampede.
Standing in line with kids, it’s all expensive and all a little craziness. It does bring the crowds and it is great for the economy but more than anything it is really great that we all get to celebrate together again.
But there is more than just the stampede that’s good right now in Alberta. Everything is on our side. Yes, even increasing interest rates. We need them for the right reasons and, of course, they will affect a few areas that won’t be ideal but Alberta’s real estate is still way below replacement value. Especially in the luxury sector.
Quality products are still going to be extremely expensive to replace and always hard to find. Get good value, great strategy, and amazing insights from an experienced team – and that is what we are here to help with! Hope you finish off the stampede in cowboy style and let’s make the best of the future together.
For the third month in a row, sales levels in the detached market have eased. Much of the pullback has occurred from homes priced under $600,000. While some of this is likely related to the continued lack of supply choice, the pullback in this sector is also related to the rise in lending rates that are impacting qualifications levels and creating some hesitancy among consumers. The pullback in sales relative to new listings did cause some modest gains in inventory levels compared to earlier in the year This helped push up the months of supply to just under two months. The shift to more balanced conditions has been limiting the upward pressure on prices. As of June, the benchmark price was $647,500. This is comparable to last month, but still 16 percent higher than last year.
Like the detached sector, sales activity slowed in June. While the pullback in sales was not enough to offset earlier gains, it was enough to push the months of supply up to nearly two months. While this gain in months of supply is likely welcome news for some buyers, conditions still remain tight compared to what we traditionally see in this segment of the market. Prices also saw some adjustment this month easing slightly relative to May’s levels. This was mostly due to adjustments in the North East, East, North West, North, and South East districts of the city. However, with a benchmark price of $581,600, prices in Calgary remain nearly 13 percent higher than levels reported last year.
Unlike the detached and semidetached sector, row sales activity improved and reached a new record high for the month of June. The row market tends to offer a more affordable option for consumers compared to both semi-detached and detached homes. While new listings did improve relative to levels recorded last year, it was not enough to offset the gains in sales. As a result, inventories trended down and the months of supply remained relatively tight at one and a half months. The benchmark price still recorded some modest gains this month, but the pace of growth slowed down significantly compared to earlier in the year. Overall, the benchmark price reached $363,700, nearly 16 percent higher than last year.
While apartment condominium sales continued to slow from record levels reported earlier in the year, sales were still over 31 percent higher than levels reported last year. This in part was possible due to the recent boost in new listings. At the same time, the boost in new listings did help take some of the supply pressure off this market as the sales-to-new listings ratio eased to 62 percent, and the months of supply pushed up to nearly three months. The shift to more balanced conditions is also helping slow the pace of price growth in this market, but not completely disrupt it. The benchmark price in June reached $277,400, nearly one percent higher than last month and 10 percent higher than last year’s levels. Despite these gains, prices continued to remain below 2014 highs.
For the detailed market statistics from the Calgary Real Estate Board for June 2022 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn, or other areas in the Calgary region.