May real estate stats are out, finally what we’ve been waiting for. There are some positive statistics and news.
- Calgary finished the month of May at 7,467 units of inventory/decline of 12 percent compared to last year.
- Citywide sales in May totalled 1,921 units, 11 percent higher than last year’s levels. However, sales remain 10 percent below longer-term trends. This sales growth was primarily driven by homes prices under $500,000.
- Prices have shown some signs of improvement month-over-month, but remain four percent lower than 2018 levels.
- If this trend continues, it could limit some of the downward pressure on prices.
- In Alberta, urban housing starts totalled 2,057 in April 2019, a year-over-year decrease of 10.1%. Canadian housing starts increased by 13.4% over the same period. In Alberta, single-detached and semi-detached units decreased 25.2% and 43.5% respectively, while row and apartment units increased 12.2% and 15.9%.
Inventory is down!
Sales are up!
New construction starts are down!
Business taxes are going down!
The new UCP government is tabling legislation that will see Alberta’s business tax rate reduced from 12 percent to 11 per.cent on July 1, then fall by a further percentage point each Jan. 1 until it reaches eight percent in 2022. Although in Calgary it appears certain more than 8,000 Calgary businesses will face double-digit tax increases this year with no relief in sight for 2019. Some businesses are facing a 30% tax hike or more.
All of this is painting a good picture. Not great but it is slowly getting better and that’s a step in the right direction. There is hope for a better economy but change doesn’t happen in a day.
“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 percent lower than 2018 levels.
For the first time in a long time, we’ve got a little bit of momentum to work with. Contact us if you would like a perspective on how the stats may relate to your real estate situation.
For the detailed market statistics from the Calgary Real Estate Board for May 2019 click HERE.