The Calgary real estate stats are out but they likely only matter if you are looking to make a move within the next few months. Due to COVID-19, everything has changed and the real estate market is very unpredictable. There was an obvious decline in activity while a large portion of the economy was shut down however July real estate sales appear to be “back to normal” compared to the previous year. But back to normal may not actually mean normal. Given the shutdown, the current stats may be reflecting a pent up demand of those that couldn’t for the previous few months. The “normal” stats are several months of buyers that all bought after the restrictions eased. It is hard to predict if the normal levels will continue or if the backlog of buyers have now bought and the sales will slow.
With that said, there are many reasons for people to be buying. Low interest rates, declining prices, being stuck inside may have shown that your house fit as well as you thought, perhaps you get to continue to work remotely and need a home with a spare room for an office, or a variety of other reasons that may demand a change in your living situation. If you need to buy, take advantage of the low interest rates and find a home that works for you.
As a seller, it is a good time to consider selling. Although there have been gains in the supply on the market, the increased sales activity was high enough to cause the months of supply to dip below four months for the first time since May 2019.
Although the stats are trending toward normal, the market is far from that. Challenges in oil & gas, double-digit unemployment rates, the potential for a second wave and many other factors are far from normal and will continue to influence the real estate market.
If you’re looking to buy or sell, ensure you get the right advice customized to your personal situation.
HOUSING MARKET FACTS
- Sales activity in June totalled 1,092 units. This is an improvement over the past few months and only slightly lower than last year’s levels.
- Despite citywide declines, year-over-year sales activity improved in the City Centre, North East, North, South East and East districts.
- June also saw an increase in new listings, which is causing some monthly gains in inventory. However, increased sales offset the rise in new listings, causing the months of supply to trend toward more balanced conditions.
- Detached benchmark prices remained relatively stable compared to last month but were two percent lower than last year’s levels. Year-over-year price declines were recorded across most districts, with the largest declines in the North West, North East and City Centre districts.
- Apartment sales totalled 227 units in June. This is an improvement from the 136 units last month, but it is still nearly 13 percent lower than last year’s levels and over 30 percent lower than longer-term averages.
- New listings rose compared to last month and last year. This did translate into some monthly inventory gains, but overall inventory levels remain lower than last year’s levels.
- The months of supply has come down from the high levels recorded over the past few months.
- Benchmark prices continued to trend down this month, totalling $240,900. This is a year-over-year decline of nearly four percent.
- The resale apartment sector continues to be one of the hardest hit in terms of relative declines in both sales and prices.
- The attached sector has faced the smallest impact of the pandemic. June sales were nearly three percent higher than last year’s levels and remain comparable to longer-term averages. The attached sector has generally benefited from its status as a more affordable alternative to the detached sector.
- Like the detached sector, the attached sector saw new listings rise compared to both last year and last month. However, the months of supply trended toward more balanced conditions and improved over last year’s levels.
- Benchmark prices remained relatively stable compared to the previous month but fell by nearly four percent compared to last year. The higher price decline in this sector could be a contributing factor to improving sales activity.
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For the detailed market statistics from the Calgary Real Estate Board for JUNE 2020 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.