Calgary Real Estate July Market Report
With the highly publicised price drops in housing in recent weeks, Calgary seems to be quickly heading to a balanced market as purchases (both investors and mostly first time home buyers) seem to be getting off the fence. For the past few weeks, there have been a healthy ratio of sales to new listings, coming in around the 60-70% mark.
Price drops across the board have levelled off and in the case of apartments, improved. Starting with detached homes, sales have dropped off slightly by 2%, but new listings are down a whopping 13%. Days on the market (DOM) has increased by 23%, mostly due to buyers knowing they can take their time to make decisions. Price drops of 5% year over year are carried forward, but definitely levelled off. Most detached homes in good areas have lost no more than a total of 8-10% since the peaks of 2014. So the bulk of the decrease happened in the last year. Again, much of this is due to the stress test forcing buyers to buy lower priced houses. That and a combination of first time buyers getting into the market with starter homes have lowered the medium price of houses sold.
Condos and townhouses are definitely fairing better. While sales are still down 14.5%, inventory has dropped a significant 12%. While we were seeing price drops nearing the double digits in recent years, it has now levelled off to detached rates of 5-7%. Some of this could also be attributed to new builds coming on the market at highly competitive rates.
Attached homes seem to be doing even better with sales UP 4% and new listings DOWN 10%. On my drive abouts, it seems there is plenty of inventory but the statistics do not support it. DOM for detached has increased though by 8.5% and prices year over year are down about 4 to 5%.
The CALGARY REAL ESTATE BOARD is predicting 2020 to be a recovery year based on the direction of the market. Again, depending on outside forces (Federal Election), the market can swing to a balanced market even sooner than that. Most of the 5% price drops happened between last summer and this winter and has throughout the spring basically stopped. So all indications are the market has already levelled off. And with the reduction of inventory and new builders building, it is likely we will see steady prices until next spring.