The media announcement is that home sales have seen a bump. A 23% increase over February of last year. That sounds like good news, and it is, but the reality is that last February was one of the lowest levels of activity since the late 1990s. So the double-digit increase is good but not as great as it sounds without the full context.
The good news is that it does show that the market is improving and that we are moving toward more balanced conditions. The oversupply is lessening and there is a modest improvement in demand which has helped the prices stabilize and remain similar to January.
Buyer’s are now willing to move quickly if properties are priced right, marketed right, and fair relative to the market place. It is still a buyer’s market but it is also a good time to sell if it makes sense for your circumstances.
If you want a monthly update on your neighbourhood, your property type, and your price point, sign up HERE.
HOUSING MARKET FACTS – City of Calgary, March 2, 2020
- After the first two months of the year, detached sales improved by nearly 12 per cent. Improvement did not occur across all districts, as sales continued to ease in the City Centre, North East and North West districts.
- Driven by pullbacks mostly in the south and west districts, new listings declined by one per cent in the city so far this year.
- Improving sales and easing new listings helped reduce inventory levels and reduced months of supply to just below four months in February. This is a significant improvement over the more than five months recorded last February.
- The benchmark price continued to trend down this month for detached homes, but the pace of decline is easing. Citywide detached prices remain less than one per cent lower than last year’s levels, but price movements vary significantly by district, ranging from a three per cent decline in the City Centre to a two per cent increase in the South district.
- For the second month in a row, improving sales were met with gains in new listings. This is causing inventory gains.
- Sales levels were high enough to cause the months of supply to ease, but the persistent oversupply in the market continues to weigh on prices.
- February benchmark prices eased compared to the previous month and is over two per cent lower than last year’s levels. The overall benchmark apartment price of $244,700 in February is nearly 19 per cent lower than 2014 monthly highs.
- After the first two months of the year, rising attached sales and easing new listings caused inventories to decline.
- February months of supply is now below five months, an improvement compared to the past two years.
- Conditions continue to favour the buyer, but improvements have helped reduce the downward pressure on prices. However, divergent activity continues based on location, as prices declined across most districts, but improved in the West, South East and East districts of the city.
For the detailed market statistics from the Calgary Real Estate Board for February 2020 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.