What is really happening in the Calgary Real Estate 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 with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.
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 2.4 to 4.0 |
Prices typically remain stable |
| Seller’s Market |
<2.4 |
Drives prices up |
*** Absorption Rate***
The absorption rate for all of Calgary increased this month meaning listings outpaced sales. Detached Homes and Row Homes (Townhouses) increased marginally and we saw larger increases in Semi-Detached and apartment condos.
|
December 2016 |
January 2017 |
Change |
| Detached |
3.01 |
3.17 |
0.16 |
| Semi Detached |
3.83 |
4.61 |
0.78 |
| Attached – Row |
4.75 |
4.73 |
-0.02 |
| Apartment |
7.59 |
8.40 |
0.81 |
| Total City |
4.04 |
4.34 |
0.31 |
Calgary Listing Inventory
January saw an increase of listings over December and this is to be expected as very few people want to list during the holidays. Normal trends would predict that over the next few months we will continue to see more listings so a further increase in inventory.
| Inventory |
December 2016 |
January 2017 |
Change |
| Detached |
1719 |
1849 |
130 |
| Semi Detached |
368 |
383 |
15 |
| Attached – Row |
570 |
610 |
40 |
| Apartment |
1108 |
1269 |
161 |
| Total City |
3765 |
4112 |
347 |
Calgary Sales:
January saw an increase in sales in all categories except Semi Detached which is down by 13 sales. This increase is fully expected as there are always more people buying in January than in December. What comes as a surprise to me is that the increase over December is only 14 more sales. Personally I thought the increase would be more substantial. The interesting and possibly good news here is that our sales were up 24% from January of 2016.
| Calgary Sales |
December 2016 |
January 2017 |
Change |
% Change |
| Detached |
571 |
584 |
13 |
2.28% |
| Semi Detached |
96 |
83 |
-13 |
-13.54% |
| Attached – Row |
120 |
129 |
9 |
7.50% |
| Apartment |
146 |
151 |
5 |
3.42% |
| Total City |
933 |
947 |
14 |
1.50% |
Calgary Real Estate Sales Prices:
Prices did not change substantially this month. Detached homes made the largest gain. I find it surprising that Apartment Condos gained a little this month. With such a high absorption rate I would predict apartment condos will lose more in the upcoming months.
| Sales Prices |
December 2016 Benchmark Price |
January 2017 Benchmark Price |
Change |
| Detached |
498,300 |
500,400 |
+2,100 |
| Semi Detached |
385,400 |
384,600 |
-800 |
| Attached – Row |
307,900 |
307,100 |
-800 |
| Apartment |
269,200 |
269,900 |
+700 |
| Total City |
435,400 |
437,400 |
2,000 |
Sales Prices “Year to Date” – Same as Above
**Please note that these numbers include on Calgary homes and 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.