“Everybody has a plan until they get punched in the face.”
– Mike Tyson
I think the “punch in the face” is the metaphorical piece Mr. Tyson was referring to.
I can have a savings plan and get punched in the face with vehicle trouble.
I can have travel plans and get punched in the face with a natural disaster.
I can have a Real Estate sale or purchase plan and get punched in the face one million different ways.
Just recently, while in Colombia, I had planned for a day and a half at the beach. I ear-marked this beach time directly after completing the Lost City trek (4 days, 3 nights).
After coming out of the Rain Forest on the 4th day of the trek, my group and I went for a night of celebration.
Around 12 AM, my stomach started hurting. Not long after, I made it back to my hostel which was the beginning of a 7 day food poisoning episode.
Day 1-2 were spent in bed. No food. No energy. No fun. 30+ degree heat with no escape.
Day 3-4 were “day’s-of-the-living-dead”. I was starting to function but not myself and still ill. I was also flying home from Colombia.
Day 5-7 were a full on exorcism of my intestines. I was Google searching for a religious deity to help me (kidding).
I was punched in the face!
Plans changed.
I reacted.
I made different decisions under duress.
Like always, and like you, I make it on the other side for the better.
I might have plans to sell my home? Maybe to purchase a home? I might get punched in the face. It happens.
Regardless of what’s going on with you, I want to update you on Calgary’s Real Estate market.
This is important fundamental stuff that no matter what happens, you can lean on for stability.
Detached Calgary Homes:
Sales To New Listings Ratio:
This ratio compares sales and new inventory.
Higher percentages mean less housing is expected to enter the market.
Lower percentages mean more housing is expected to enter the market.
We can see Calgary’s detached sales to new listing ratio is climbing to shrink the distance in it’s 4 year low. It’s up month-over-month but still down year over year. This is a result of increased inventory and lower sales volume.
Absorption Rate:
How long would it take, in months, to liquidate all of Calgary’s detached listing inventory? See the answer in the chart below!
Higher absorption rates indicate a buyers market (good for them).
Lower absorption rates indicate a sellers market (good for them).
Calgary’s absorption rate typically starts to trend higher in Summer months. However, not at this level or pitch.
Buyers seem to have the negotiation table slanted in their favor right now.
Average Price:
Average price is seasonally trending down and higher year-over-year.
Please contact me for a referral to a full-time and professional Real Estate agent for a further market assessment.
Apartment Condo’s:
Sales To New Listings Ratio:
Calgary’s apartment sales to new listings ratio is up month-over-month and up relative to 2016 & 2017.
This is improving the outlook on future apartment supply to help support current price levels.
Absorption Rate:
The absorption rate is seasonally trending up month-over-month and is just below July 2017’s rate of about 7 months.
There are fewer new listings coming up for sale which is being offset by slumping sales. This is reflected in our higher absorption rate despite the sales to new listings ratio improving.
Median Price:
With fewer sales, median price slumped month over month and is at a four year low.
I think this is a buyers market in the apartment sector of Calgary’s home market with lots of opportunity to negotiate the purchase price.
Conclusion:
I have a plan. I get punched in the face. My plans change. This happens to all of us at some point.
Calgary’s Real Estate market ebbs and flows. I hope you find this data empowering and make it a part of your plans.
Thanks for reading!
Chad Moore
P.S
This might be helpful to understand …here is how the Calgary Real Estate Board (CREB) classifies property types:
Detached: A unit not attached to anything else.
Semi-detached: A single dwelling built as a pair that share one common wall.
Row: A single dwelling attached to each other by a common wall with more than two properties in the complex.
Attached: Both row and semi-detached housing.
Apartment: A unit within a high rise or low rise condominium building with access through an interior hallway.
