Find out what is really happening in the 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 and ahead of most!
Below are the details along with a few comments, all numbers were taken from the Calgary Real Estate Boards Stats package for Realtors.
Calgary Listing Inventory
In November our total inventory of listings in Calgary declined in all 3 categories. It is very typical for inventory to decrease at this time of year as people start to focus on the holiday season.
| Inventory | Oct 2015 | Nov 2015 | Change |
| Detached | 2922 | 2680 | -262 |
| Attached | 1290 | 1287 | -3 |
| Apartment | 1366 | 1349 | -17 |
| Total City of Calgary | 5578 | 5316 | -262 |
Calgary Sales:
Sales in all categories decreased in November. Again it is typical for us to see a decrease in sales in November with the Holidays quickly approaching. We are down substantially from 2014 (2014 was a huge year) and are down from the long term average. In my opinion seasonal adjustments are a small part of this and it is a bigger reflection of a weakened economy and uncertainty in Alberta.
| Sales | Oct 2015 | Nov 2015 | Change | % Change |
| Detached | 872 | 799 | -73 | -8.4% |
| Attached | 312 | 269 | -43 | -13.8% |
| Apartment | 237 | 195 | -42 | -17.7% |
| Total City of Calgary | 1421 | 1263 | -158 | -11.1% |
Calgary Real Estate Sales Prices:
Prices for all categories decreased this month. The largest decrease is in the detached home sector. The overall price decease for November is .53% . Looking at the Absorption rate I predict that that detached home sector will continue to see small decreases while the attached home sector and apartment condo sector will continue to see higher decreases.
Why you might ask am I predicting a decrease for detached homes while we are still in a balanced market – my answer is simply that the consumer confidence level out there is low.
| Sales Prices | Oct 2015
Benchmark Price |
Nov 2015
Benchmark Price |
Change |
| Detached | 513,800 | 510,700 | -3,100 |
| Attached | 354,100 | 352,400 | -1,700 |
| Apartment | 288,300 | 287,000 | -1,300 |
| Total City of Calgary | 453,100 | 450,700 | -2,400 |
Sales Prices “Year to Date”
Year to date prices – The numbers here speak for themselves. As you can see the largest decrease is in the apartment sector. Overall I am surprised at how well Real Estate has held up so far with all the uncertainty.
| Sales Prices | Dec 31, 2014 Benchmark Price | Nov 2015
Benchmark Price |
Change
$ |
% Change |
| Detached | 510,900 | 510,700 | -200 | -.04% |
| Attached | 357,000 | 352,400 | 4,600 | -1.3% |
| Apartment | 300,300 | 287,000 | -13,300 | -4.42% |
| Total City of Calgary | 459,000 | 450,700 | -8,300 | -1.8% |
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 |
*** Absorption Rate***
In my opinion this is the most critical number to look at. Somehow detached homes in Calgary are holding steady in a balanced market position. Both attached homes and apartment condos are in a buyers’ market. The largest increase is absorption rate is in the apartment condo sector at an increase of 1.15% which is substantial and will reflect in prices in the upcoming months.
| Absorption Rate | Oct 2015 | Nov 2015 | Change |
| Detached | 3.35 | 3.35 | 0 |
| Attached | 4.13 | 4.79 | +.66 |
| Apartment | 5.76 | 6.91 | +1.15 |
| Total City of Calgary | 3.93 | 4.21 | +.28 |
Price Sensitivity
It is also important to note that homes in the lower price ranges are still moving while higher priced homes are the ones seeing the least amount of activity.
**Please note that these numbers do change on a community basis and more so for towns. 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.
If you know anyone else who might enjoy seeing our monthly summary please feel free to pass this on. Gord, Eric, Brent, Melissa
TSW Real Estate Group