Calgary Real Estate September Market Report
Summer seems to have cooled off recently but the housing market seemed to stay cool all summer long. August was very slow even in comparison to last year with sales dropping by 6%, The number of listings has also dropped as people are thinking twice about listing during an overly saturated market. Listings have dropped to the low 8000s from over 8600 earlier in the summer. Sales have helped, but some properties have just been taken off the market. There is still a lingering reticence from some sellers to "give their houses away".
The Kinder Morgan TransMountain Pipeline issue is sure to impact the fall and winter months but it will be hard to say how much as we are already entrenched in a buyer's market. There are bargains out there for those looking, but well priced homes in good areas still seem to fetch decent prices for sellers who are patient.
Overall the market is somewhat stagnant as the oil Industry is slow to recover, unemployment stays relatively high and new mortgage rules continue to have an impact. While 2017 was slow in terms of total sales, 2018 is even slower with a 16% drop Year to Date volume of sales. New listings have dropped recently, helping with some recovery but the days on market for all homes have increased by 22% for detached homes and roughly 12% for condos/townhouses and attached. The benchmark price and average price have stayed relatively stable for single family homes with only a minute drop in price, while condos/townhouses have seen a further 3% decline. Attached homes have fared in between with an average drop in price of around 1.5%. The positive news is that condos and attached houses have dropped far less than in previous years and new attached houses are selling at increased prices in the inner city from the years previous.
While houses have stayed on the market for a while, in some instances there have a sudden interest in well priced, well located homes and we've been privy to yet another multiple offer situation. It seems late August brought about a micro-burst of activity as summer winds down. It may or may not continue depending on the impact of the court ruling on Kinder Morgan.
In the meantime, Cochrane has become a mini tech hub suddenly for a growing company, Garmin Canada, and it may take a few of these alternative businesses to kick start our real estate market before a full fledged recovery is in sight. We stay entrenched in a plateau where a relative lack of activity indicates the buyer's market is far from over.