What’s Happening in the Calgary Real Estate Market?
Absorption Rate Calgary
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 June 1, 2017
As you can see below the absorption rates for the different categories did not change substantially in May.
- Seller’s Market – Detached and Semi-Detached Homes – No change
- Balanced Market – Row or Townhouses
- Buyer’s Market – Apartment Condo’s
| April 2017 | May 2017 | Change | |
| Detached | 2.09 | 2.13 | 0.04 |
| Semi Detached | 2.25 | 2.78 | 0.54 |
| Attached – Row | 3.92 | 3.49 | -0.43 |
| Apartment | 5.74 | 6.29 | 0.55 |
| Total City | 2.87 | 2.92 | 0.05 |
Calgary Listing Inventory
June saw an increase in inventory levels in all categories. This is a very normal trend for May and we can expect more increases as we get into the summer months.
| Inventory | April 2017 | May 2017 | Change |
| Detached | 2522 | 2941 | 419 |
| Semi Detached | 463 | 518 | 55 |
| Attached – Row | 863 | 949 | 86 |
| Apartment | 1647 | 1780 | 133 |
| Total City | 5495 | 6188 | 693 |
Calgary Sales:
Both Single family and Attached Row houses saw a large increase in sales this month. Semi-Detached saw a sizable decrease and apartment condos saw a small decrease.
| Calgary Sales | April 2017 | May 2017 | Change | % Change |
| Detached | 1204 | 1378 | 174 | 14.45% |
| Semi Detached | 206 | 186 | -20 | -9.71% |
| Attached – Row | 220 | 272 | 52 | 23.64% |
| Apartment | 287 | 283 | -4 | -1.39% |
| Total City | 1917 | 2119 | 202 | 10.54% |
Calgary Real Estate Sales Prices:
Wow, this is the first time in a few years that I can say that all categories saw price increases during the month of May. While this trend seems nice (for homeowners) I cannot see that this can continue. Detached homes should continue to increase but Apartment condos should not (and should be going down) with the high absorption rate.
| Sales Prices | April 2017 Benchmark Price | May 2017 Benchmark Price | Change |
| Detached | 504,100 | 509,000 | 4,900 |
| Semi Detached | 390,200 | 393,100 | 2,900 |
| Attached – Row | 305,900 | 308,300 | 2,400 |
| Apartment | 269,200 | 271,200 | 2,000 |
| Total City | 439,600 | 443,800 | 4,200 |
Sales Prices “Year to Date”
| Sales Prices | Jan 1, 2017 Benchmark Price | May 2017 Benchmark Price | Change
$ |
% Change |
| Detached | 498,300 | 509,000 | 10,700 | 2.15% |
| Semi Detached | 385,400 | 393,100 | 7,700 | 2.00% |
| Attached – Row | 307,900 | 308,300 | 400 | 0.13% |
| Apartment | 269,200 | 271,200 | 2,000 | 0.74% |
| Total City | 435,400 | 443,800 | 8,400 | 1.93% |
Clarification
**Please note that these numbers include only 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.