Calgary Real Estate Update September 2019
If I copied and pasted last month's newsletter, the details would not be too far off. We've had a third straight month improvement in sales from last year, though figures are still tame and in favour of buyers. What is definite, not to repeat myself too much, is that the market is in "plateau" mode; a period of time after hitting bottom wherein not much changes and prices stay relatively stable month to month.
Year to year, there is a consistent improvement from 2018. Inventory is 13% lower than this time last year, sitting around 6700. That however, is still above the long term average of 5500-6000. This makes for a slight overabundance of listings which of course leads to downward pressure on prices. Also, significantly, it leads to buyers taking their time in making decisions; as a result DOM (days on the market) remains higher even than last years levels. With Condos, it has increased the least (only 11% from last year), however levels have been high there for years. Detached days on the market has significantly increased by a whopping 17%, matching increases felt by attached housing. Reasons are likely the higher prices which are impacted by a continual trend by buyers to move towards low priced homes.
For detached homes, supply compared to last year is down 6.54% and like last month, there's been a collective 3-5% reduction in Benchmark, Medium and Average prices year over year. To reiterate, this loss reflects higher in the average/medium range because of a lot of first time buyers jumping in a lower prices and investors taking advantage of lower prices.
Attached home listings, despite new ones popping up in the inner city everywhere, are still down year over year at 9.4% with current inventory 6% less than what it was last September. Price wise, detached matches the 3 to 5% reduction that's felt with attached homes. Condo/Apartment listings have taken a huge price drop since 2014 but only slipped around 2-3% since this time last year, thereby taking less of a drop than attached and detached homes. This smaller drop is indicative that the condo scene, while still in rough waters, may have finally bottomed out.
Poor weather might continue to hamper sales in the coming months. Buyers also seem fixated on the upcoming election. We may see some significant shifts in the market in the months to come. October sales will be very unpredictable though, with good weather, might see increased activity.
Conclusively, the market is slow, showing improvement, but still in a somewhat stagnant state and still in favour of buyers.