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Sales activity improves for second consecutive month
City of Calgary, June 3, 2019 – Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12 per cent compared to last year. Improving sales relative to inventory levels caused the months of supply to ease to just under four months. While still oversupplied, this is an improvement from the five months of supply recorded last May. Citywide sales in May totalled 1,921 units, 11 per cent higher than last year’s levels. However, sales remain 10 per cent below longer-term trends. This sales growth was primarily driven by homes priced under $500,000. “While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes,” said CREB® chief economist Ann-Marie Lurie. “This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.” Citywide benchmark prices totalled $423,100 in May. Prices have shown some signs of improvement month-over-month but remain four per cent lower than 2018 levels. HOUSING MARKET FACTS Detached
REGIONAL MARKET FACTS Airdrie
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May 1, 2019 – There have been no significant changes occurring in sales activity, but the number of new listings coming onto the market continues to ease relative to 2018 levels.
The decline in new listings was enough to start chipping away at overall inventory levels, which have eased slightly compared to last year. The slight adjustment in supply levels has helped support further reductions in the months of supply, which was 4.6 months in April. While this level still represents oversupply in our market, it does reflect improvement from the nearly seven months of supply that we saw at the start of the year. “Demand remains relatively weak in the resale market. However, if supply levels continue to adjust, this could help reduce the amount of oversupply and eventually support some price stability,” said CREB® chief economist Ann-Marie Lurie. As of April, the total residential benchmark price in Calgary was $415,900. This is slightly higher than last month, but still nearly five per cent lower than last year’s levels. Citywide sales were 1,547 units in April, two per cent higher than last year’s levels. Year-to-date sales remain nearly six per cent lower than last year and are 26 per cent below longer-term averages. “Sales have been improving mostly in the lower price ranges, causing tighter supply conditions in that segment. This will likely have a different impact on price trends in the lower price ranges depending on location,” said Lurie. HOUSING MARKET FACTS Detached
REGIONAL MARKET FACTS Airdrie
Media release: Oversupply persists despite improved sales activity for affordable product
City of Calgary, April 1, 2019 – March saw a modest decline in city wide sales activity compared to last year. However, sales have been rising for more affordable product in the detached and attached sectors. Shifts in the lower end of the market have not outweighed easing across the higher priced product. First-quarter sales dropped to 3,108 units. This is nine per cent below last year and 28 per cent below typical levels of activity. Price declines and relatively slow sales activity are impacting the number of new listings. For the second consecutive month, new listings eased compared to last year’s levels and long-term trends, but it was not enough to prevent inventory growth. “If new listings continue to slow compared to sales, it could start to help with the persistent oversupply scenario weighing on our housing market,” said CREB® chief economist Ann-Marie Lurie. “However, inventory is still high. It will still take time for our market to transition towards more balanced conditions and stable pricing.” With 6,595 units in inventory in March, the months of supply eased to five months. This is an improvement over the past several months, but still considered oversupplied when compared to levels traditionally recorded in March. The oversupply in the Calgary market has caused further price declines this month. As of March, benchmark prices eased to $413,900, five per cent below last year’s levels and just below levels recorded last month. HOUSING MARKET FACTS Detached
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REGIONAL MARKET FACTS Airdrie
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City of Calgary, March 1, 2019 – The effects of Calgary's economic climate continue to create weak sales activity and elevated inventory in the city's housing market.
As a result, prices are being affected. “It is not a surprise that slowing activity in the housing market has persisted into February,” said CREB® chief economist Ann-Marie Lurie. “There has been no substantial change in the economic climate and concerns regarding potential layoffs in the energy sector are weighing on confidence.” As of February, citywide benchmark prices were $414,400. This is nearly five per cent below last January, slightly lower than last month’s figures and over 10 per cent below highs recorded in 2014. While the market remains oversupplied, slower sales and price declines do appear to be influencing sellers. New listings this month eased by eight per cent compared to last year for a total of 2,211 units. However, the 976 sales this month were not enough to substantially impact inventories levels, which remain elevated at 5,885 units. HOUSING MARKET FACTS Detached
Airdrie
Media release: New year kicks off with slow sales
City of Calgary, February 1, 2019 – As economic challenges linger into 2019, housing markets remain on a sluggish pace. January sales totalled 804 units, 16 per cent below last year and 21 per cent below long-term averages for the month. "The slow start to the year does not come as a surprise, as concerns about job losses and the state of the energy sector weigh on consumers. We anticipate that the slow market conditions will persist throughout much of the first quarter," said CREB® chief economist Ann-Marie Lurie. The number of new listings entering the market remained comparable to last year, but those levels far surpassed sales activity. This is resulted in further gains in inventory levels. Elevated inventories relative to sales caused months of supply to rise to nearly seven months. Persistent buyers' market conditions have continued to impact prices. Citywide residential benchmark prices eased to $414,800 in January. This is nearly one per cent lower than December figures and four per cent below January 2018 levels. HOUSING MARKET FACTS Detached
REGIONAL MARKET FACTS Airdrie
Calgary, Jan. 30, 2019 – The challenging economic climate in Calgary is expected to persist into 2019. Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year. "Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year," said Ann-Marie Lurie, CREB® Chief Economist. "At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year." There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020. Buyers' market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease. While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations. "In this market, buyers have the advantage of choice. A REALTOR® can help buyers find a home that best fits their lifestyle," said Alan Tennant, CREB® CEO. "For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guess work out of the process."  |
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