What is really happening in the Calgary Real Estate Market?
Calgary Real Estate Absorption Rate
Calgary Real Estate Absorption Rate
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 |
Watch the Trend
On the above graph it is important to see the trends – Especially the apartment condo absorption rate- it is trending downward and is closing the gap with the rest of the sectors.
Current Absorption Rate
The absorption rate for all categories except Attached-Row houses declined this month which in my opinion is a good thing as it shows a little more balance in the market.
| End of | May 2018 | June 2018 | Change |
| Detached | 4.26 | 3.98 | -0.28 |
| Semi Detached | 5.53 | 5.04 | -0.49 |
| Attached – Row | 5.06 | 5.73 | 0.67 |
| Apartment | 6.81 | 6.41 | -0.40 |
| Total City | 4.90 | 4.65 | -0.24 |
Calgary Listing Inventory
In June, our inventory increased in all sectors except apartment condos. This is totally expected at this time of year. July should be an interesting month as the typical July will see listings drop off. The decrease in apartment condos I would contribute to listings expiring as sales were flat.
| Inventory | May 2018 | June 2018 | Change |
| Detached | 4504 | 4817 | 313 |
| Semi Detached | 862 | 922 | 60 |
| Attached – Row | 1163 | 1209 | 46 |
| Apartment | 1921 | 1872 | -49 |
| Total City | 8450 | 8820 | 370 |
Calgary Sales:
Sales were again up in all categories except for Attached Row houses which were down only 19 from May. The percentage looks big at 8.26 due to small numbers in this sector.
Sales for June were 11% down from last year but this is again an improvement as May sales were down 18.4% from last year.
| Calgary Sales | May 2018 | June 2018 | Change | % Change |
| Detached | 1058 | 1210 | 152 | 14.37% |
| Semi Detached | 156 | 183 | 27 | 17.31% |
| Attached – Row | 230 | 211 | -19 | -8.26% |
| Apartment | 282 | 292 | 10 | 3.55% |
| Total City | 1726 | 1896 | 170 | 9.85% |
Calgary Real Estate Sales Prices:
This one has me stumped. In theory the sector with the highest absorption rate should have the biggest decline in price. The opposite took place in June with every sector dropping a little except Apartment Condos which increased in price.
| Sales Prices | May 2018 Benchmark Price | June 2018 Benchmark Price | Change |
| Detached | 504,500 | 503,100 | -1,400 |
| Semi Detached | 419,000 | 418,000 | -1,000 |
| Attached – Row | 303,200 | 302,300 | -900 |
| Apartment | 256,200 | 259,100 | 2,900 |
| Total City | 436,900 | 436,500 | -400 |
Sales Prices “Year to Date”
Same as monthly number
| Sales Prices | Jan 1, 2018 Benchmark Price | June 2018 Benchmark Price | Change
$ |
% Change |
| Detached | 499,600 | 503,100 | 3,500 | 0.70% |
| Semi Detached | 416,600 | 418,000 | 1,400 | 0.34% |
| Attached – Row | 299,500 | 302,300 | 2,800 | 0.93% |
| Apartment | 257,700 | 259,100 | 1,400 | 0.54% |
| Total City | 433,200 | 436,500 | 3,300 | 0.76% |
**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 about Real Estate in general, please feel free to contact us.