Want to know what’s really happening in the Calgary Real Estate Market. The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and the effect on the price of Calgary Real Estate. A simple way to keep up to date on the Market. The Calgary Real Estate market continues to show signs of a change in direction bringing good news for home buyers.
Below are the details along with a few comments, all numbers were taken from the Calgary Real Estate Boards Stats package for Realtors.
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Calgary Listing Inventory: Inventory levels increased this month in all categories. This is what normally happens at this time of year as many people like to wait till spring to list their home. This year Sellers are also seeing a good opportunity to sell so I predict that listings are going to continue to increase. One interesting thing to note is that many sellers coming to the market are hoping to cash in on the seller’s market and are listing their homes substantially higher than the market will pay. Home’s that are listed at or slightly above market values are still often getting competing offers and are selling in the first day or two while sellers fishing for above market value are just adding to our inventory of listing.
| Inventory |
April 2014 |
May 2014 |
Change |
| Single Family Home |
2445 |
2947 |
+502 |
| Condo Townhouse |
445 |
576 |
+131 |
| Condo Apartment |
898 |
1051 |
+153 |
| Total |
3788 |
4574 |
+786 |
Calgary Sales:
Sales in May increased in every category over last month which is to be expected at this time of year. One reason for this increase is that with more inventory buyers have more selection. Trends show that next month we should see a flattening or a slight decline in sales over this month.
| Sales |
April 2014 |
May 2014 |
Change |
% Change |
| Single Family Home |
1736 |
2027 |
+291 |
+17% |
| Condo Townhouse |
360 |
410 |
+50 |
+14% |
| Condo Apartment |
449 |
511 |
+62 |
+14% |
| Total |
2545 |
2948 |
+403 |
+15.8% |
Calgary Real Estate Sales Prices:
In May, the benchmark price increased for all categories. Based on the inventory change, prices are likely to increase for a few more months as we move from a seller’s market to a more balanced market.
| Sales Prices |
April 2014 Benchmark Price |
May 2014 Benchmark Price |
Change |
| Single Family Homes |
496,700 |
504,300 |
+7,600 |
| Condo Townhouse |
316,700 |
321,400 |
+4,700 |
| Condo Apartment |
291,700 |
295,400 |
+3,700 |
Sales Prices “Year to Date”
Year to date prices – same as above, Prices have increased in all categories. Good news if you are a homeowner and not so good news for those wanting to get into the market.
| Sales Prices |
Dec 31 2013 Benchmark Price |
May 2014 Benchmark Price |
Change$ |
% Change |
| Single Family Homes |
472,200 |
504,300 |
+32,100 |
6.8% |
| Condo Townhouse |
307,100 |
321,400 |
+14,300 |
4.7% |
| Condo Apartment |
278,600 |
295,400 |
+16,800 |
6.0% |
Absorption Rate (Months of Inventory) (the inventory divided by the number of sales in the last month). What does this mean you might ask?
| Buyer’s Market |
>4.0 |
| Balanced Market |
Between 2.8 to 4.0 |
| Seller’s Market |
<2.8 |
Absorption Rate: For the second month in a row our absorption rate has increased. This indicates to me that the market is starting to change and we are moving towards a balanced market. Please note that we are so deep in a Seller’s market that it will take us a few more months of this trend to reach a balanced market state. My prediction is that this trend will continue and by July or August we will be approaching a balanced market – sooner for apartment condos.
| Absorption Rate |
April 2014 |
May 2014 |
Change |
| Single Family Homes |
1.41 |
1.45 |
+.04 |
| Condo Townhouse |
1.24 |
1.40 |
+.16 |
| Condo Apartment |
2.0 |
2.06 |
+.06 |
| Total Calgary |
1.48 |
1.55 |
+.07 |
**Please note that these numbers do change on a community basis and more so for towns. 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.
