Here’s what’s important to understand about Calgary Real Estate:
(all info from the Calgary Real Estate Board CREB)
Detached Housing Update:
Sales To New Listings:
Calgary’s detached home sales to new listings ratio is seasonally down month over month, but higher year over year.
I see this as an indicator of less future inventory. The remainder of 2019 should see less new inventory coming online for the Winter months. Demand remaining constant, this helps support pricing.
Absorption Rate:
Detached absorption rate is higher month over month, but significantly down year over year.
I think this is still a relatively high number for Calgary’s detached market. An absorption rate over 4 months indicates a “buyers market”. Throughout the Fall we should see this number edge lower.
Overall, buyers seem to still have more leverage in negotiations.
Average Price:
Calgary’s detached average price has increased for the past two months.
I think you know this …Real Estate is hyper local. Each property type, area, price point, condition of home etc etc influences the market.
I’ve reported in previous market updates that detached homes less than $500K seem to be consolidating and finding a market bottom. In general, I think this process is still unfolding at higher price points. #newnormal.
Apartment Condos:
Sales To New Listings Ratio:
For the last couple of months this ratio has been decreasing, indicating more inventory is on the market. However, we are well above previous years data.
Overall, this is an indicator there will be fewer apartments for sale.
Absorption Rate:
The absorption rate is seasonally climbing higher, but far below most recent years data.
For me, these two indicators help support a bottoming condo market.
Median Price:
In 2019 the median price for Calgary condos has basically been flat. If I strung together previous years data into one long line I would see a downward trend with current signs of bottoming. Think a wide, long letter “U”. Not a “V”. A “U”. In previous market cycles, 2008-2010 the market was more a “V”. This market cycle 2014-Current seems more like a “U”.
Conclusion:
I’m seeing indicators of Calgary’s market searching for bottom. For many reasons, data year over year in many categories, has improved. Remember though, 2018 was a statistical disaster for CREB in many respects.
I’m seeing the glass half full! What a great time to enter the market, trade a home for more potential upside value and more!
I’ve also been helping many people retain their existing home as a rental property so they can buy at such a great time.
Ask me how to do this with as little as 5% down payment on your new home!!
Talk soon,
Chad Moore
