Newsflash – Detached homes enter into a sellers market.
Stay ahead of everyone else 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 most importantly the relationship between the two and how it affects the price of Calgary Real Estate. A simple way to keep up to date and ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors.
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 |
Before we get into this month’s report (for followers) it is important to note that the Calgary Real Estate Board made changes to categories again and this time for the better. In past they used Attached Homes and now they have broken this into two categories –Semi Detached & Row (Townhouses). This makes more sense to me as they are quite different markets.
*** Absorption Rate***
In my opinion this is the most critical number to look at. Detached homes are now back in a seller’s market. Three months in a row the absorption rates have been on a steady decrease. If you are someone sitting on the fence to see if prices will go down more my suggestion is to get off the fence especially if you are looking for a detached home.
| Mar 2016 | April 2016 | Change | |
| Detached | 3.08 | 2.76 | -0.32 |
| Semi Detached | 4.04 | 3.42 | -0.62 |
| Attached – Row | 4.87 | 5.05 | 0.18 |
| Apartment | 6.00 | 5.85 | -0.15 |
| Total City | 3.85 | 3.54 | -0.31 |
Calgary Listing Inventory
April saw an increase in inventory in all categories and this is very typical for April.
| Inventory | Mar 2016 | April 2016 | Change |
| Detached | 3094 | 3127 | 33 |
| Semi Detached | 582 | 595 | 13 |
| Attached – Row | 896 | 930 | 34 |
| Apartment | 1535 | 1590 | 55 |
| Total City | 6107 | 6242 | 135 |
Calgary Sales:
Sales in all categories increased again this month. This is very typical for a spring market. It is important to note that Sales are still down from normal levels but are increasing.
| Calgary Sales | Mar 2016 | April 2016 | Change | % Change |
| Detached | 1004 | 1134 | 130 | 12.95% |
| Semi Detached | 144 | 174 | 30 | 20.83% |
| Attached – Row | 184 | 184 | 0 | 0.00% |
| Apartment | 256 | 272 | 16 | 6.25% |
| Total City | 1588 | 1764 | 176 | 11.08% |
Calgary Real Estate Sales Prices:
Interesting that all categories decreased in prices. In my opinion, I believe it is simply because buyers and sellers are not aware of how the market has shifted direction and everyone is still acting like it’s a buyer’s market. Buyers are bringing low offers, and sellers are happy just to get an offer and are willing to settle a little lower.
| Sales Prices | March 2016
Benchmark Price |
April 2016
Benchmark Price |
Change |
| Detached | 502400 | 501500 | -900 |
| Semi Detached | 385600 | 383600 | -2000 |
| Attached – Row | 318500 | 314800 | -3700 |
| Apartment | 281300 | 280400 | -900 |
| Total City | 442800 | 441000 | -1800 |
Sales Prices “Year to Date”
Year to date prices
| Sales Prices | Dec 31, 2015 Benchmark Price | April 2016
Benchmark Price |
Change
$ |
% Change |
| Detached | 514100 | 501500 | -12600 | -2.45% |
| Semi Detached | 393100 | 383600 | -9500 | -2.42% |
| Attached – Row | 318500 | 314800 | -3700 | -1.16% |
| Apartment | 288000 | 280,400 | -7,600 | -2.64% |
| Total City | 452800 | 441000 | -11800 | -2.61% |
Price Sensitivity
It is also important to note that homes in the lower price ranges are still moving much quicker than homes in the higher price ranges.
**Please note that these numbers do change on a community basis and more so for towns. This report does not include rural properties. If you would like to find stats on your community just let me know. If you have any questions about this summary or Real Estate questions please feel free to contact us.
Tags: Calgary House Prices, Calgary Real Estate Market, Home Sales, YYC House Stats