Here is a snapshot of what is really happening in the Calgary Real Estate Market. Real estate are based on supply and demand so the key numbers we look at here are Inventory, Sales, absorbtion Rate and of course Prices which is simply a reflection of the above categories. All numbers below are from the Calgary Real Estate Boards Monthly stats package produced for realtors.
Many of you are aware that the Mortgage rules recently changed and everyone was wondering what effect that would have on the market. Well the biggest change was that 30 year amortization are no longer available as the maximum is now 25 years. As you will see from the stats below these changes did not have much impact so far in Calgary.
Calgary Listing Inventory: Inventory levels for all categories decreased slightly in July. Last year this was the time when our inventory started increasing rapidly so seeing a slight decline is a good sign.
| Inventory |
June 2012
|
July 2012
|
Change
|
| Single Family Home |
3817
|
3646
|
-171
|
| Condo Townhouse |
693
|
623
|
-70
|
| Condo Apartment |
1205
|
1161
|
-44
|
| Total |
5715
|
5390
|
-325
|
Calgary Sales:
Sales decreased in all categories this month. In my opinion this was expected and is more of a seasonal adjustment as we are following the same trend as last year when our sales peaked in June. Last year sales in June were 2200 and in July were 1936 – a 13.6% decrease. Total Calgary residential sales for July were 21.3% higher than in 2011.
| Sales |
June 2012
|
July 2012
|
Change
|
% Change
|
| Single Family Home |
1609
|
1386
|
-223
|
-16.1
|
| Condo Townhouse |
253
|
239
|
-14
|
-5.8
|
| Condo Apartment |
340
|
311
|
-29
|
-9.3 |
| Total |
2202
|
1936
|
-266 |
-13.7 |
Calgary Real Estate Sales Prices: Please note that we are now using the Benchmark price for this comparison.
As the chart below demonstrates the benchmark price for all categories stayed flat this month. In my opinion this is a very healthy market with good activity level and prices showing modest increases.
| Sales Prices |
June 2012 Benchmark Price |
July 2012 Benchmark Price
|
Change
|
| Single Family Homes |
430,800
|
432400
|
+1200.
|
| Condo Townhouse |
278,000
|
277400
|
-600.
|
| Condo Apartment |
246,300
|
247600
|
+1300.
|
Absorption Rate (Months of Inventory) – Yes a new category!
The absorption rate is the inventory divided by the number of sales in the last month.
What does this mean you might ask?
An absorption rate of below 3.0 indicates a Seller’s Market
An absorption rate of between 3.0 to 4.0 indicates a Balanced Market
An Absorption rate of above 3.0 indicates a Buyer’s Market.
| Absorption Rate |
June 2012 |
July 2012
|
Change
|
| Single Family Homes |
2.37
|
2.63
|
+.26
|
| Condo Townhouse |
2.73
|
2.61
|
-.12
|
| Condo Apartment |
3.54
|
3.73
|
+.19
|
| Total Calgary |
2.60
|
2.78
|
+.18
|
Therefore overall we are in a balanced market. Please note that these numbers do change on a community basis. If you would like to find stats on your community just let me know.
If you have any questions about this summary, the attached stats package or any Real Estate questions please feel free to contact us anytime.
If you would like the full stats package just let me know.
Gord, Eric & Brent