Posts Tagged ‘Home Sales’

May 1, 2016 Calgary Real Estate Market Snapshot

Tuesday, May 3rd, 2016

Newsflash – Detached homes enter into a sellers 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! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors.

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

Before we get into this month’s report (for followers) it is important to note that the Calgary Real Estate Board made changes to categories again and this time for the better.  In past they used Attached Homes and now they have broken this into two categories –Semi Detached & Row (Townhouses). This makes more sense to me as they are quite different markets.

*** Absorption Rate***  

In my opinion this is the most critical number to look at.  Detached homes are now back in a seller’s market. Three months in a row the absorption rates have been on a steady decrease.  If you are someone sitting on the fence to see if prices will go down more my suggestion is to get off the fence especially if you are looking for a detached home.

  Mar  2016 April  2016 Change
Detached 3.08 2.76 -0.32
Semi Detached 4.04 3.42 -0.62
Attached – Row 4.87 5.05 0.18
Apartment 6.00 5.85 -0.15
Total City 3.85 3.54 -0.31

 Calgary Listing Inventory

April saw an increase in inventory in all categories and this is very typical for April.

Inventory Mar  2016 April  2016 Change
Detached 3094 3127 33
Semi Detached 582 595 13
Attached – Row 896 930 34
Apartment 1535 1590 55
Total City 6107 6242 135

Calgary Sales:

Sales in all categories increased again this month.  This is very typical for a spring market.  It is important to note that Sales are still down from normal levels but are increasing.

Calgary Sales   Mar  2016 April  2016 Change % Change
Detached 1004 1134 130 12.95%
Semi Detached 144 174 30 20.83%
Attached – Row 184 184 0 0.00%
Apartment 256 272 16 6.25%
Total City 1588 1764 176 11.08%

 

Calgary Real Estate Sales Prices: 

Interesting that all categories decreased in prices.  In my opinion, I believe it is simply because buyers and sellers are not aware of how the market has shifted direction and everyone is still acting like it’s a buyer’s market.  Buyers are bringing low offers, and sellers are happy just to get an offer and are willing to settle a little lower.

  Sales Prices March   2016

Benchmark Price 

April  2016

Benchmark Price

Change
Detached 502400 501500 -900
Semi Detached 385600 383600 -2000
Attached – Row 318500 314800 -3700
Apartment 281300 280400 -900
Total City 442800 441000 -1800

 

 Sales Prices “Year to Date”   

Year to date prices

Sales Prices Dec 31, 2015   Benchmark Price  April  2016

Benchmark Price

Change

$

% Change
Detached 514100 501500 -12600 -2.45%
Semi Detached 393100 383600 -9500 -2.42%
Attached – Row 318500 314800 -3700 -1.16%
Apartment 288000 280,400 -7,600 -2.64%
Total City 452800 441000 -11800 -2.61%

 

 

Price Sensitivity

It is also important to note that homes in the lower price ranges are still moving much quicker than homes in the higher price ranges.

**Please note that these numbers 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.