What is really happening in the Calgary Real Estate Market?
Absorption Rate for 2017
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: 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 the Real Estate Board made some changes to what fits into each category and then made the stats changes retroactive. This shows up as a large increase in Semi-Detached homes ($39,000) a large decrease in Row homes (14,300) and a decrease in Apartment condos of $5,400. In my report I am using their new, year to date numbers so you can still see the change from May to June. _____________________________________________________________________________________________________________________________________
*** Absorption Rate
The Absorption rate for June saw all categories increase very slightly. The highest increase is in the apartment condo market where it increased by .26 which happens to be where we need it the least.
| May 2017 | June 2017 | Change | |
| Detached | 2.13 | 2.33 | 0.19 |
| Semi Detached | 2.78 | 2.90 | 0.12 |
| Attached – Row | 3.49 | 3.63 | 0.14 |
| Apartment | 6.29 | 6.55 | 0.26 |
| Total City | 2.92 | 3.11 | 0.19 |
Calgary Listing Inventory
In June we saw a fairly large increase in our inventory level. Detached homes were the highest showing an increase of 283 listings.
| Inventory | May 2017 | June 2017 | Change |
| Detached | 2941 | 3224 | 283 |
| Semi Detached | 518 | 560 | 42 |
| Attached – Row | 949 | 1001 | 52 |
| Apartment | 1780 | 1874 | 94 |
| Total City | 6188 | 6659 | 471 |
Calgary Sales:
Can you say consistent? Sales in June were almost identical in numbers to May. As you can see sales remain strong in the detached sector and weak in the apartment condo sector.
| Calgary Sales | May 2017 | June 2017 | Change | % Change |
| Detached | 1378 | 1385 | 7 | 0.51% |
| Semi Detached | 186 | 193 | 7 | 3.76% |
| Attached – Row | 272 | 276 | 4 | 1.47% |
| Apartment | 283 | 286 | 3 | 1.06% |
| Total City | 2119 | 2140 | 21 | 0.99% |
Calgary Real Estate Sales Prices:
For June all sectors showed price increased with the exception of Apartment Condos which showed a slight decrease. I believe that you will continue to see this trend for apartment condos for quite some time as there are several new buildings coming to completion stage and it’s just going to increase our inventory.
| Sales Prices | May 2017Benchmark Price | June 2017 Benchmark Price | Change |
| Detached | 506,700 | 509,400 | 2,700 |
| Semi Detached | 427,900 | 432,100 | 4,200 |
| Attached – Row | 292,400 | 294,000 | 1,600 |
| Apartment | 266,600 | 265,800 | -800 |
| Total City | 439,300 | 441,500 | 2,200 |
Sales Prices “Year to Date”
| Sales Prices | Jan 1, 2017 Benchmark Price | June 2017 Benchmark Price | Change
$ |
% Change |
| Detached | 498,700 | 509,400 | 10,700 | 2.15% |
| Semi Detached | 406,800 | 432,100 | 25,300 | 6.22% |
| Attached – Row | 302,600 | 294,000 | -8,600 | -2.84% |
| Apartment | 265,000 | 265,800 | 800 | 0.30% |
| Total City | 433,400 | 441,500 | 8,100 | 1.87% |
**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.