Calgary Real Estate in June 2019
As Calgarians and visitors celebrate The Stampede, the month of June shows a lot more activity in the housing market then the months preceding it. As it has become clear earlier this spring that the market has bottomed out, slowly but surely the market has seen increasing percentage of sales with respect to new listings. Most of this improvement has happened in the past month.
The significant stats breaks down as follows: In June there were 13% more sales than June of last year while new listings during the month dropped by nearly 21% leaving 16% less active listings than last years' high of nearly 9000 units on the market (currently around 7480 on the market). Over all prices from last June (only for the month) have dropped around 12% owing to the recent listings being priced well below the average price. This of course points to a lot of first time buyers entering the market with entry price purchases. A small but significant number of renovated houses are making a comeback. Buyers are looking more and more for contemporary updated styles and are willing to pay the price for a job well done.
Year over year sales are down slightly, 1.84%, owing to a brutal fall and winter with very low sales volume. Though this drop seems slight, it must be noted that last years sales were also low compared to the average over decades. Significant though is that listings were also down nearly 14% year over year as sellers seemed to get the message last year was not a good time to put their homes on the market. Average price for all homes was down 5%, reflecting the most significant drop over the years in all types of listings. Of special note here is the days on the market increased a whopping 20%. The tug of war continued with sellers holding onto their list prices and buyers continuing to search for bargains.
In the detached market total sales were down 2.5% while attached (mostly driven by new builds and investors) were actually UP 3.56%. Both home types suffered year over year price drops of 3-5%. The biggest losses continue to be the condo/townhouse market which saw sales drop by nearly 7% and average price drops of 8.6%. It must be noted that these saw the most significant price drops in the years leading up to 2018 so while SF (single family) homes might have only lost 8-10% in value since the peak in 2014, some condo units (particularly the older dated ones) have lost as much as 30% since that same time.
As for the future, there continues to be great debate. There are signs of confidence and perhaps cautious optimism with some, but when the market is in the bottom it sometimes takes factors outside of the market to pull it out. As lately, it remains a buyer's market but the seller resistance to offer bargain prices continues to take hold.
I wish all a very merry Stampede week.