Calgary Real Estate Market Analysis October 2020
The market continues to be buoyed by very low interest rates and confidence in mid range housing (400-600K). Some days this month saw more sales than new listings which is unprecedented in this type of market. And with a slew of terminated or expired listings leaving the market over past few weeks the ratio of active listings to sales keeps dropping. However, sales are down substantially in the 700+ range. In fact, 700-800K sales barely represent 5% of the figures. Of course, this hits the high middle end homes and new detached builds in the inner city or larger homes in the suburbs especially.
In general, the market is moving in a very positive direction. Total sales are up 27% from November of last year, new listings have dropped by nearly 13% and the median price is up 1.3%. Even days on market (DOM) is down nearly 18%. The detached market has virtually the same improvements except active listings which is even down over 23% contributing to DOM down 23%. There have been quick sales here and multiple offers on well priced detached homes. It does mean the good well priced homes in the 400 to 600K range are figuratively flying off the shelves so it makes it tough for buyers in that market. There have been sales above the 950K mark as well as people take advantage of expensive homes with very attractive prices. The down side here is that medium and average prices of detached homes are down between 7 and 9% from last year, the biggest drop yet.
Row and townhouses continue to take a hit. While sales are up 20% and new listings are down 27%, the medium price has dropped by 8% and the average price has dropped nearly 20%! While semi-detached has shown a great improvement over last year, it was these that suffered the worst coming into this year, especially the new ones in the inner city that were priced high because of the cost of land. While builders continue to take a hit, the average price has increased because buyers are moving from the older, worn listings to the newer ones to take advantage of the competitive prices.
Even apartment/condo sales are up by nearly 29% though new listings and active listings continue to rise. But for the first time in a long time, the medium and average price of these units has risen between 1.5 and 5.4% respectively. DOM continues to rise as the rise of active listings and buyers selectivity keeps the units on the market longer.
If something could be extrapolated from this it's two things: low interest rates will continue to drive the market; and consumer confidence has returned - we have signs of a balanced market though I would proceed with cautious optimism moving forward. After brisk sales in late summer and early fall, will the stampede to buy continue? Only time will tell.