August 2014, Calgary Real estate Market Snapshot

Stay ahead of the curve by following our Monthly Market Snapshot of the Calgary Real Estate Market.  This shows 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 and ahead of most!  The Calgary housing market is deeply  entrenched is a Sellers Market however is showing slow signs of moving toward a balanced market.

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 decreased for marginally in all categories. While this is typical for this time of year the challenge is we are starting with a low inventory so a decrease can push us back towards a stronger Seller’s market. I believe the reason is that we still have a large backlog of buyers waiting for the perfect home to come on the market, especially in the starter home price range.

Inventory July 2014 Aug 2014 Change
Single Family Home 3056 3021 -35
Condo Townhouse 536 437 -99
Condo Apartment 1070 1056 -14
Total 4662 4514 -148

 

Calgary Sales:

Sales in August decreased marginally in all categories except apartment condos. Sales numbers decreasing is very normal at this time as people are focused on summer vacations.  Apartment condos increased and I believe that’s simply that last month they decreased more than the other categories.

Sales July 2014 Aug 2014 Change % Change
Single Family Home 1553 1477 -76  
Condo Townhouse 339 338 -1  
Condo Apartment 444 452 +8  
Total 2336 2267 -69  

 

 

Calgary Real Estate Sales Prices:

In August, 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. If you have been following my reports monthly the increase is smaller than what we have been seeing.

Sales Prices July 2014

Benchmark Price

Aug 2014

Benchmark Price

Change
Single Family Homes 511,600 512,300 +700
Condo Townhouse 327,000 328,300 +1,300
Condo Apartment 298,100 298,200 +100

 

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.

Sales Prices Dec 31 2013 Benchmark Price Aug 2014Benchmark Price Change

$

% Change
Single Family Homes 472,200 512,300 40,100 +8.5
Condo Townhouse 307,100 328,300 21,200 +6.9
Condo Apartment 278,600 298,200 19,600 +7.0

 

 

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:

This month the absorption rate increased for single family homes while it decreased for Townhouses and Apartment Condos. This I find interesting as we have been moving from a strong seller’s market towards a buyer’s market (although slowly). My only explanation here is that there is still a backlog of buyers especially in the starter home price ranges putting more pressure on Condos and Townhouses.

 

Absorption Rate July 2014 Aug 2014   Change
Single Family Homes 1.97 2.05 +.08
Condo Townhouse 1.58 1.29 -.29
Condo Apartment 2.40 2.33 -.07
Total Calgary 1.99 1.99

**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.

 

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