Schools back in session and the real estate market is picking up.
August stats show an increase in sales and a reduction of new listing inventory. This will continue the trend toward balanced market conditions. Sales improved 6% compared to August of 2018 but they were primarily homes priced below $500,000 so there is still a ways to go in the higher end and luxury market.
“Employment numbers have been improving, but mostly in industries that are traditionally lower paid,” said CREB® chief economist Ann-Marie Lurie. “This is contributing to the shift that we are seeing in the housing market, with growth being limited to product priced below $500,000.”
There was growth in sales for all product types but the largest improvement was in condos and attached homes. Attached sales have increased for the past 6 months compared to last years stats and it’s the only property type that has higher year-to-date sales than last year.
The citywide benchmark price in August was $426,000. This is 2.6% lower than August of 2018 but comparable to July. With less downward pressure on pricing, a reduction in new inventory, and higher sales, the market is stabilizing. Although we’re seeing improvement, the market is still well below the historical norm. This may be the new norm or we are on a long road to recovery.
The market continues to favour the buyer. But, if you’re a seller that is also buying in this market remember that your move is lateral. You may have to accept a loss on the sale of your property but you will make up for it when you purchase.
- YTD sales remain just below last year’s levels.
- Improvement in sales in the South and North West districts in August.
- Sales growth has improved in homes under $500,000.
- Homes priced above $500,000 have elevated inventories and decrease in sales.
- Sales activity has improved for 2 consecutive months.
- Increase in new listings has kept inventory levels high and the months of supply elevated.
- Citywide benchmark prices have eased compared to Aug 2018.
- Year-over-year attached sales have improved for 6 consecutive months. YTD sales are nearly 5% higher than last year.
- New listing inventory has slowed and with the increase of sales, there is a reduction in inventory.
- There has been some improvement in benchmark pricing but it still remains 2.6% below last year’s levels at this time.
Whether you’re buying or selling, 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 August 2019 click HERE.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn or other areas in the Calgary region.