September Results are in and it looks like things are changing in the Real Estate front in Calgary.
Stay ahead of the curve by following our Monthly Market Snapshot of the Calgary Real Estate Market. This shows what’s really happening! 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!
Below are the details along with a few comments, all numbers were taken from the Calgary Real Estate Boards Stats package for Realtors.
Calgary Listing Inventory
In September we saw an increase in inventory levels for all categories. New listings were up and sales we down causing this increase.
| Inventory | Aug 2015 | Sept 2015 | Change |
| Detached | 2801 | 3012 | +211 |
| Attached | 1130 | 1232 | +102 |
| Apartment | 1215 | 1282 | +67 |
| Total City of Calgary | 5146 | 5526 | +380 |
Calgary Sales:
Sales for all categories decreased this month. While the percentages look high it is important to note that some of this is strictly seasonal as September is always lower in sales than August. In my opinion seasonal adjustments are a small part of this and it is a bigger reflection of a weakened economy and uncertainty.
| Sales | Aug 2015 | Sept 2015 | Change | % Change |
| Detached | 1000 | 906 | -94 | -9.4% |
| Attached | 364 | 283 | –81 | -22.3% |
| Apartment | 279 | 259 | -20 | -7.1% |
| Total City of Calgary | 1643 | 1448 | -195 | -11.8% |
Calgary Real Estate Sales Prices:
Prices for Attached and Detached homes increased slightly this month while the Apartment Condo sector prices decreased. Looking at today’s absorption rate I predict that Detached homes will continue with small increases or stay flat while attached homes and Apartment Condos will continue to see price declines in the next while.
| Sales Prices | Aug 2015Benchmark Price | Sept 2015Benchmark Price | Change |
| Detached | 516,000 | 517,200 | +1,200 |
| Attached | 356,700 | 357,000 | +300 |
| Apartment | 294,100 | 290,600 | -3,500 |
| Total City of Calgary | 456,300 | 456,100 | -200 |
Sales Prices “Year to Date”
Year to date prices – Again increases in detached and attached while Apartment condos have decreased.
| Sales Prices | Dec 31, 2014 Benchmark Price | Sept 2015Benchmark Price | Change$ | % Change |
| Detached | 510,900 | 517,200 | +6,300 | +1.2% |
| Attached | 337,300 | 357,000 | +19,700 | +5.8% |
| Apartment | 300,300 | 290,600 | -9,700 | -3.23% |
| Total City of Calgary | 459,000 | 456,100 | -2,600 | -.63% |
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 | Drives prices down |
| Balanced Market | Between 2.8 to 4.0 | Prices typically remain stable |
| Seller’s Market | <2.8 | Drives prices up |
*** Absorption Rate:
In September all categories increased with attached homes increasing the most. As mentioned earlier this will reflect in prices in the upcoming months.
| Absorption Rate | Aug 2015 | Sept 2015 | Change |
| Detached | 2.80 | 3.32 | +.52 |
| Attached | 3.1 | 4.35 | +1.25 |
| Apartment | 4.35 | 4.95 | +.6 |
| Total City of Calgary | 3.13 | 3.82 | +.69 |
Price Sensitivity
It is also very interesting that starter homes are the ones that are still selling in the first day in a lot of circumstances. The higher priced homes are the ones seeing the least amount of activity.
**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.
If you know anyone else who might enjoy seeing our monthly summary please feel free to pass this on. Gord, Eric, Brent, Melissa
TSW Real Estate Group