Strongest September in 6 Years of Calgary Real Estate
While the expression "THE SKY IS FALLING" has been thrown around for many months now, especially with regards to the Calgary Real Estate Market, the data continues to provide ample contradictions!
September sales were the strongest total since 2014. New listings were up from last month but strong sales continue and the ratio of sales to new listings still hover around 60%, a ratio indicative of a healthy balanced market. Low lending rates are driving sales but also consumer confidence indicates that the worst is over and the market has bottomed out. All markets are improving except for the row house which, while not decreasing in price as much as in the past, still has not found its legs during the recovery period these past few months. At 7% down from last year, row/town houses continue to take it on the chin. Condos are faring better, but with the huge percentage decrease over the years, it will take quite a bit before they see prices like in 2014, if ever. However, with no negligible decrease in value, I'm confident that market can not get any worse.
Recovering slightly but still showing a 1.8% drop in prices is the attached/semi-detached home, old and new. This market has seen improvement simply because of the lack of new builds (builders losing any sort of profit margin has led to a drop in permits). Prices here have generally bottomed out and begun a slow tred upward in the 400-550K range. There is still difficulty in the plus 600K range for new builds in the inner city where the price of building and lots has not caught up to what buyers are willing to pay. As supply diminishes, in this sector, prices will level off and begin a slow upward trend.
Single family detached continue to do very well, again in the sub 600K range and especially in the 400 to 500K range. Overall, this market actually saw an increase in the average price of 1%. Multiple offers and quick sales are very common in almost all locations in Calgary. However, the ones that are selling are the well-priced and spotless, somewhat or majorly renovated houses that immediately catch the eye. For a significant time now how the house shows provides an ample boost over lot value. Gone are the times when in the inner city you get a house for >lot-value< and the house relatively comes for free. Advise for sellers -- PAINT, RENOVATE (WISELY), CLEAN and present your home in the best possible light, and last, but not least, accept we are at the bottom of the market and price accordingly.
If you are a buyer in the 400 to 550K single family detached range, there is competition out there with these historically low interest rates and finding the home you like may mean putting a reasonable offer in quickly. You may have more opportunity to wait on single family and semi-detached in the 600 to 900K range, but you also will not have the greatest selection. Those house are not selling well and often at a financial loss to the owners, and as such, are not being put onto the market in great numbers.
The overall market has been steady price wise, with sales up 25% Year over year, new listings steady year over year, and inventory dropping a significant 12%.