October stats are out and Calgary has another month with strong real estate sales. Home sales in October hit a volume of 1,764 units. This is up from 1,702 in September and up 23% compared to October of 2019. Sales are exceeding longer-term averages.
Sales have outpaced new home listings allowing for stronger market conditions and improving prices. The high sales volume is due to low interest rates and lower prices compared to previous years as well as a greater desire for certainty in housing and a greater need for housing that suits one’s current situation.
Although the market is reaching more balanced conditions, it is not equal across all product types and all price points. When making your real estate decision, make sure you get specific advice for your individual situation as 2020 certainly isn’t a one size fits all in any category, including real estate.
Detached sales totalled 1,139 in October, a year-over-year gain of 35 percent. Unlike earlier this year, October’s largest gains in sales occurred for homes priced above $600,000. Easing prices for more expensive homes could be supporting this rise in sales. There were more new listings this month than levels recorded last year, but inventories still eased, causing the months of supply to drop below three months. This is a significant improvement from the four-plus months recorded over the past several years. There is, however, significant variation by location and price range. Detached homes priced under $500,000 are reporting less than two months of supply, supporting some price gains depending on location. When looking at price movements by district, the only city district to record further price declines was the City Centre. The South and South East districts recorded year-over-year price gains of around four percent. Despite recent price movements, prices in all districts remain far from recovery and are well below previous highs.
Sales activity trended up over the last month and new listings eased. This is causing inventories to decline and the months of supply to fall to just above three months. The tighter market conditions continued to support some monthly gains in prices. Despite these gains, the October benchmark price remained nearly one percent below last year’s levels. However, activity varies significantly based on location. Year-over-year prices eased in the City Centre, North West and West districts, offsetting the price gains in the other districts. Despite improvements over the past several months, year-to-date sales remain over six percent below last year’s levels and over seven percent below long-term averages. Slower sales activity has been mostly driven by pullbacks in the City Centre, North West, South, West and East districts of the city.
There were significant year-over-year declines in the City Centre and West districts, but citywide row sales improved over last year’s levels and year-to-date activity sits only two percent below last year. Inventory remained relatively stable this month, keeping the months of supply around four months. Citywide benchmark prices were $274,400 in October. This is a slight improvement over last month, but nearly six percent below last year’s levels. The price decline was mostly caused by the significant drop in row prices in the West district of the city.
For the seventh consecutive month, apartment condominium sales eased compared to last year’s levels, resulting in year-to-date sales of 1,999 units. This represents a 15 percent decline from last year and is nearly 30 percent below longer-term averages. The only sector of this market showing signs of improvement is the under- $200,000 segment. Sales have improved in this segment, but it has not been enough to offset declines in all other price ranges. Citywide sales have been easing, but new listings have been on the rise. This is causing year-over-year inventory gains and is halting positive momentum in prices. As of October, the benchmark price totalled $248,600, similar to last month and over one percent below last year’s levels. Overall, apartment condominium prices remain over 17 percent below previous highs.
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For the detailed market statistics from the Calgary Real Estate Board for October 2020 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.