Status Quo for Calgary’s Housing Market Prices remain similar to last year, but ease in October.
City of Calgary, November 1, 2017 – October’s housing market conditions closely echoed previous month’s trends with easing sales, rising inventories and downward price pressure. Like last month, the monthly activity was not enough to derail gains that occurred earlier in the year.
October sales and inventories totaled 1,467 and 6,463 units for a month of supply of 4.4. Several months of elevated supply in comparison to demand has weighed on pricing over the past several months. The city-wide unadjusted benchmark price in October totaled $438,900, 0.6 per cent below last month, but comparable to last year.
“While economic activity has improved in 2017, it will take some time for this to translate into housing market growth. There have been employment gains, but most of this has occurred in areas with traditionally lower income,” said CREB® chief economist Ann-Marie Lurie.
“We also continue to face weak migration, higher lending rates and changes to lending policy. The combination of these factors is impacting housing demand, which is prolonging the pace of recovery.”
Resale inventory gains occurred in each product type and across most districts in the city. The largest gains were in districts with substantial new development growth.
In the detached segment, the largest number of units added to inventory occurred in the $300,000 – $500,000 price range. This represents nearly 42 per cent of all detached inventory. 62 per cent of the inventory in the city-wide market is priced below $500,000.
“There is far more product availability in the lower price ranges now compared to several years ago,” said CREB® president David P. Brown.
“This provides more options for potential buyers concerned about their purchasing power given all the changes in the lending market.”
The largest monthly price change occurred in the apartment condominium sector which recorded an unadjusted monthly decline of 0.8 per cent, resulting in a 13 per cent spread over monthly highs recorded in 2014.
Despite some recent adjustments, prices in the attached and detached segments remain relatively stable compared to last year.
HOUSING MARKET FACTS October 2017 • Slower detached sales in October was not enough to derail earlier gains, as year-to-date sales improved in almost all districts in the city. • On average, detached prices this year have improved in most districts of the city. The largest gains were in the west district, pushing prices to levels comparable with previous highs. • Apartment condominium product continues to see more supply than demand with October months-of supply figures remaining just above seven months. Most of the inventory is located within the city center, but there has been gains in most districts causing excess supply in all areas of the city. • The semi-detached segment of the market continues to see the best annual price improvement. As of October, prices totaled $419,400, which 0.10 per cent below last month and three per cent above last year’s levels. This is partially due to the improved demand for this type of product. While year-to date sales have improved, this is the only sector that has seen sales rise above longer-term averages
CREB November 1, 2017 ( Release )
DARYL CARLSON – RE/MAX Realty Professionals
Please email, text or call, if you have any questions.
(403) 650 – 7400 darylcarlson@shaw.ca
Have a great day!