September 2020, it was a record month for real estate sales in Calgary. We haven’t seen this many sales since 2014. Remember then? The good ole days.
Let’s pause and reflect for a moment. September 2014 when the price of Brent crude was $97 a barrel and the Calgary Stampeders won the Grey Cup. And now, today so much has changed. Most things can’t go back and any that may, it won’t be anytime soon.
Total residential benchmark prices have trended up over the past three months, resulting in September prices that are similar to prices recorded at the same time last year.
Our plan is to move forward with a vengeance. To use the strong home sales of September, both volume and price, and all the hard work we can to make the best of it together because the impact of COVID isn’t over.
With significant gains in the $400,000 – $600,000 range, September sales are the highest they have been since 2014.
Improving sales and easing new listings resulted in further reductions in inventory levels and caused the months of supply to ease to balanced territory. Recent improvements in the supply/demand balance have supported some upward price movements. As of September, the benchmark price was nearly one percent higher than last year.
However, the year-over-year gains have been driven by the more affordable end of the market, as prices remain well below last year’s levels in both the City Centre and West districts of the city.
Given some recent monthly gains in new listings, sales in this sector improved in September, but at a slower pace than both the detached and row sectors. This could be related to the significant pullback in inventory.
September inventory levels were nearly 21 percent lower than last year, the largest percentage decline in inventory among all property types. This shift in supply, along with improving sales, has started to help reduce the oversupply in this sector and ease the downward pressure on prices.
September prices remain nearly two percent lower than last year’s levels, but prices have started to improve in the South, South East and East districts of the city.
Sales in this sector have continued to trend up for the past several months and September sales were significantly higher than last year’s levels.
While it was not enough to offset the pullback that occurred during the COVID-19 shutdown, row sales activity is four percent lower than last year’s levels. The growth in sales could be related to the significant price adjustment that has occurred in this sector.
Prices in this sector have eased by seven percent compared to last year and remain nearly 17 percent below previous highs.
All other sectors have seen some recent year-over-year gains in sales, but this sector continues to trend in the other direction. Year-to-date sales declined by 16 percent, the largest decline among all property types.
At the same time, new listings continue to rise, which is causing further inventory gains. This is keeping the months of supply above seven months.
There have been some districts showing signs of price stabilization, but overall, year-to-date prices have eased by more than two percent, amounting to a total adjustment from 2014 highs of over 18 percent.
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For the detailed market statistics from the Calgary Real Estate Board for September 2020 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.