For a clear perspective on the real estate market, you have to look beyond the headline. Although sales activity in October improved by nearly 10 percent compared to last year, the economy and the results of the election are having an impact on the market.
Sales have improved and inventory has eased but the Calgary market is still oversupplied and continuing to put pressure on the benchmark price.
“Employment has shifted in the city, with job growth occurring in our non-traditional sectors and often at a different pay scale. This is consistent with the shift to more affordable housing product,” said CREB® chief economist Ann-Marie Lurie.
The majority of the sales have been in the condo and attached sectors, particularly at the lower price range. The activity has not been consistent across all products or price ranges. Sales are low at the upper end of the market and supply is continuing to rise. The elevated supply will continue to put pressure on prices.
- Sales activity came in just above 2018 levels for October.
- YTD sales are over 19% lower than long term trends.
- New listing inventory has eased slightly but at a slower pace than the past 8 months.
- 3,391 units in inventory, the months of supply is just under four months. This is less than last year but still high compared to long term trends.
- Unadjusted benchmark prices remained nearly 2% lower than last year’s levels and nearly 8% lower than previous highs.
- Sales continued to improve in October.
- New listings eased.
- Supply has decreased to just under 6 months of inventory.
- YTD prices are 2% lower than in 2018 and nearly 17% lower than peak pricing.
- Attached has had the largest increase in sales with YTD growth of nearly 7%
- YTD new listings have eased by 8% causing a reduction in oversupply.
- For October, semi-detached and row prices remained 2% and 4% lower than last year’s levels.
If you’re selling, ensure your property presents well (consider staging and definitely make sure you have professional photos!) and be competitive with pricing to set yourself apart from the competition.
Buying can be overwhelming when faced with such an oversupply of inventory. Be specific with what you’re looking for and as soon as you determine that you’re not interested in a home you’re viewing, move on to the next. You don’t have to spend time looking at every room of a home that you have no intention of buying.
Contact us for more perspective on your real estate situation.
For the detailed market statistics from the Calgary Real Estate Board for October 2019 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.