Absorption Rate Graph
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 |
Important Disclaimer: ***Error*** For those who regularly follow my Market Snapshot you may notice the numbers from last month do not jive with the numbers from this month. It appears to me that this is a correction reversing last month’s numbers from the Real Estate Board.
The chart below shows the change in Sales Price numbers for June and July, so you can see it’s a numbers correction and not what’s really happening. Hopefully this is the last error!
These numbers also reflect what I am seeing in the Market with infills rising and townhouses declining in price.
| June Prices | July Prices | Net Change 2 Months | |
| Semi-Detached | +39,000 | (11,300) | +27,700 |
| Row – Townhouses | (14,300) | +12,700 | (1,600) |
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August Market Snapshot Report
*** Absorption Rate
The Absorption rate for July saw all categories increase. This is somewhat normal for this time of year as the majority of summer vacations are taken between July 15th to Aug 15th. Our scorching weather may have played a factor in this as well.
| June 2017 | July 2017 | Change | |
| Detached | 2.33 | 3.21 | 0.88 |
| Semi Detached | 2.90 | 4.05 | 1.15 |
| Attached – Row | 3.63 | 4.63 | 1.01 |
| Apartment | 6.55 | 7.07 | 0.52 |
| Total City | 3.11 | 4.08 | 0.97 |
Calgary Listing Inventory
In July we saw an increase in all categories except apartment condos. I’m speculating the only reason we saw a decline in apartment condos is that many of the listings that are not selling are starting to expire.
| Inventory | June 2017 | July 2017 | Change |
| Detached | 3224 | 3268 | 44 |
| Semi Detached | 560 | 596 | 36 |
| Attached – Row | 1001 | 1001 | 0 |
| Apartment | 1874 | 1810 | -64 |
| Total City | 6659 | 6675 | 16 |
Calgary Sales:
As you can see sales declined in all categories in July. Once again I believe this change to be mostly seasonal and also partially due to the hot weather. This is the first month in a while where we have seen such large decreases.
| Calgary Sales | June 2017 | July 2017 | Change | % Change |
| Detached | 1385 | 1018 | -367 | -26.50% |
| Semi Detached | 193 | 147 | -46 | -23.83% |
| Attached – Row | 276 | 216 | -60 | -21.74% |
| Apartment | 286 | 256 | -30 | -10.49% |
| Total City | 2140 | 1637 | -503 | -23.50% |
Calgary Real Estate Sales Prices:
For July we saw small increases in price with the exception of the data errors mentioned above.
Moving forward I expect that detached and semi-detached will remain flat, townhouses may decrease a little more and apartment condos will continue to decrease.
| Sales Prices | June 2017 Benchmark Price | July 2017 Benchmark Price | Change |
| Detached | 509,400 | 512,100 | 2,700 |
| Semi Detached | 432,100 | 420,800 | -11,300 |
| Attached – Row | 294,000 | 306,700 | 12,700 |
| Apartment | 265,800 | 266,200 | 400 |
| Total City | 441,500 | 443,600 | 2,100 |
Sales Prices “Year to Date”
| Sales Prices | Jan 1, 2017 Benchmark Price | June 2017 Benchmark Price | Change
$ |
% Change |
| Detached | 498,700 | 512,100 | 13,400 | 2.69% |
| Semi Detached | 406,800 | 420,800 | 14,000 | 3.44% |
| Attached – Row | 302,600 | 306,700 | 4,100 | 1.35% |
| Apartment | 265,000 | 266,200 | 1,200 | 0.45% |
| Total City | 433,400 | 443,600 | 10,200 | 2.35% |
**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.
TSW Real Estate Group
Gord Piper & Brent Wilcox
Tags: Calgary House Prices, Calgary Real Estate Market Snapshot Aug 2017, What is happening in calgary real estate market?