City of Calgary, August 1, 2019 – For the fourth consecutive month, inventories in the market declined compared to last year. This is due to the combination of improving sales and a decline in new listings.

The market continues to favour the buyer, but a continuation in supply reduction compared to sales is needed to support more balanced conditions.

“We are starting to see reductions in supply across the resale, rental and new-home markets,” said CREB^® chief economist Ann-Marie Lurie.

“This adjustment in supply to the lower levels of demand will support more balanced conditions. It is starting to support more stability in prices. If this continues, the housing market should be better positioned for recovery as we move into 2020.”

Year-to-date sales activity remains just below last year’s levels and well below longer-term averages. However, the reduction in inventory has caused the months of supply in July to ease to 4.5 months, a significant improvement from the 5.5 months recorded last year.

With less oversupply in the market, prices are showing some signs of stability on a monthly basis. This is causing the rate of price decline to ease on a year-over-year basis. Overall, year-to-date benchmark prices remain over four per cent below last year’s levels.

HOUSING MARKET FACTS

Detached

• Sales activity in July was slightly higher than last year’s levels, but it was not enough to offset earlier declines, as year-to-date sales remain just below last year’s levels. Despite overall declines, trends vary significantly by price range. Year-to-date sales for product priced below $500,000 have improved by 11 per cent compared to last year, while sales over $500,000 have declined by nearly 16 per cent.
• New listings continue to ease for detached product, reducing inventory across most price ranges. This is also starting to result in year-over-year declines in the months of supply for all prices ranges except homes over $1 million.
• Adjustments in sales and inventories also vary significantly by district. Year-to-date sales have declined across all districts except the North West and South districts. Easing inventories have not occurred across all districts, with year-over-year July inventory gains occurring in both the City Centre and West districts.
• Buyers’ market conditions persist, with detached benchmark prices at $488,400 in July. This is over three per cent lower than last year’s levels. Price declines range from a high of 5.7 per cent in the South district to a low of 1.4 per cent in the North East district.

Apartment

• Despite improvement in July, year-to-date sales for apartment condominiums eased by over four per cent and remain well below longer-term averages.
• Available rental supply and ample selection in the new-home sector have impacted sales in the resale market. However, inventories continue to adjust, reducing the oversupply in this sector.
• With conditions favouring the buyer, prices continue to edge down. However, year-to-date benchmark price declines are not occurring across all districts, with modest gains occurring in the North East district.

Attached

• The attached sector is the only sector with recorded growth in year-to-date sales, up nearly four per cent. The affordable nature of this product, relative to detached, has likely supported some of these gains.
• The number of new listings continues to ease. This is causing inventory declines and reductions in oversupply. Like the other sectors, this segment continues to favour the buyer, preventing any significant changes in prices.
• Both row and semi-detached prices remain over three per cent lower than last year’s levels and well below historical highs. Attached price declines have been the highest in the City Centre district at over five per cent.

REGIONAL MARKET FACTS

Airdrie

• For the fifth consecutive month, year-over-year sales improved in Airdrie. Year-to-date sales reached 757 units, over three per cent higher than last year. Improving sales combined with declines in new listings have resulted in less inventory in the market compared to last year. This market is moving toward balanced conditions.
• Oversupply is easing, but July benchmark prices remain over three per cent below last year’s levels. There are steeper price declines occurring in the higher density sectors of the market.

Cochrane

• Year-to-date residential sales in Cochrane totalled 376 units, slightly lower then last year’s levels. New listings have been in decline, resulting in the fourth consecutive month with a year-over-year decline in inventory.
• This has caused the amount of oversupply to ease, supporting more stability in pricing. As of July, the benchmark price in Cochrane is $408,300, over four per cent lower than last year’s levels.

Okotoks

• Total residential sales in Okotoks have totalled 321 units so far in 2019. This is similar to last year, but below long-term trends. New listings continue to trend down, supporting inventory declines and easing in the months of supply.
• As the amount of oversupply in the market eases, prices have been showing signs of improvement compared to the previous month. However, year-to-date benchmark prices remain over four per cent lower than last year’s levels.

Click here to view the full City of Calgary monthly stats package.

City of Calgary, July 2, 2019 – New listings coming onto the market continued to decline in June, which is helping to reduce the oversupply of homes in Calgary.

Year-over-year, new listings saw a decrease of nearly 19 per cent. Sales activity slowed this month compared to last year by six per cent, but the pullback in new listings was enough to cause inventories to fall by 13 per cent compared to last year’s elevated levels.

“So far, the housing market has generally behaved as expected this year. Sales activity remains just below last year’s levels, prices have eased and supply is starting to adjust to the lower level of sales,” said CREB^® chief economist Ann-Marie Lurie.

“However, it is mostly product priced under $500,000 that is trending towards more balanced conditions.”

While the market still favours the buyer – with 4.3 months of supply – the amount of oversupply has eased and is slowing the decline in prices. As of June, the benchmark price in the city was $425,700, nearly four per cent below last year’s levels and comparable to unadjusted prices recorded last month.

HOUSING MARKET FACTS

Detached

• Detached sales in June declined by nine per cent compared to last year, causing year-to-date sales to ease by nearly three per cent. The decline in sales was mostly driven by homes priced above $500,000.
• Detached homes priced under $500,000 have recorded improvements in sales and oversupply reductions. The tightening in the lower end of the market will likely start to support price growth in this sector of the market.
• Despite city wide year-to-date sales declines, activity improved in both the South and North West districts of the city. Sales did ease across other districts, but in some of the most affordable districts (North East and East) supply-to-demand ratios are improving compared to last year. This is pushing those markets toward more balanced conditions.
• Despite slower sales activity, the amount of inventory declined by nearly 18 per cent. The reduction in inventories occurred throughout all districts.
• Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices nearly four per cent below last year’s levels.

Apartment

• Apartment condominium sales eased in June, causing year-to-date sales to total 1,292 units. This is over seven per cent below last year’s levels. Over the same time frame, new listings eased by over 15 per cent, helping reduce some of the resale inventory in the market.
• Resale inventory levels have declined, but the months of supply continue to remain elevated at 6.8 months. Combined with elevated inventories in the competing rental and new-home markets, this continues to weigh on resale pricing.
• June’s benchmark price was $250,200, three per cent below last year’s levels. This is resulting in a total price adjustment of over 17 per cent since 2014.

Attached

• Unlike other property types, sales activity for attached product continued to improve in June. Year-to-date sales total 1,955 units, nearly three per cent above last year’s levels. Improvements were driven mostly by growth in demand for semi-detached product. Attached sales improved across all districts except the North West and West.
• New listings have eased compared to last year, which is starting to reduce oversupply in the market. Like all other sectors, the attached market remains oversupplied and this is impacting prices.
• June’s benchmark prices were $399,700 for semi-detached and $286,300 for row product. Respectively, this represents year-over-year declines of 3.3 and 5.4 per cent.

REGIONAL MARKET FACTS

Airdrie

• After the first half of the year, sales activity remained relatively stable. New listings have declined, which is helping to reduce the amount of inventory on the market and move towards more balanced conditions.
• The market may be trending towards more balanced conditions, but oversupply continues to weigh on prices. The benchmark price was $334,800 in June, comparable to last month, but nearly three per cent below last year’s levels.

Cochrane

• Sales activity in the area remained relatively stable compared to last year and consistent with longer-term trends. New listings have eased, helping to reduce inventory in the market and the amount of oversupply.
• Despite some recent adjustments, the market continues to favour the buyer, placing downward pressure on prices. The benchmark price was $404,000 in June, similar to last month and over five per cent below last year’s levels.

Okotoks

• Sales have remained stable compared to last year, but they are still below longer-term averages. However, new listings are starting to adjust, which is continuing to push down inventory levels and cause the market to move towards more balanced conditions.
• As the market moves towards more balanced conditions, this should help create more stability in pricing. As of June, benchmark prices were $414,900, 1.6 per cent higher than last month, but still 4.1 per cent below last year’s levels.

Click here to view the full City of Calgary monthly stats package.

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

• First-quarter sales declined by nearly nine per cent compared to last year and 30 per cent below typical levels of activity.
• Detached sales have varied depending on location and price range, with gains occurring mostly in the most affordable price ranges of each district.
• In March, citywide detached sales improved for all homes priced under $500,000.
• Despite easing in new listings, inventories increased over last year’s levels, pushing months of supply to the highest level ever recorded for the month of March. When considering activity by districts, the North East and East districts have seen the level of oversupply ease compared to last year.
• Oversupply in the detached sector continues to weigh on prices across all districts in the city. Citywide detached benchmark prices eased 5.4 per cent compared to last year for a total price of $475,800.

Apartment

• Resale condominium sales fell by 14 per cent in March, causing first-quarter sales to total 464 units, 17 per cent below last year. The decline did not occur in all districts, as sales activity improved in both the North and West districts of the city. Despite some signs of improvements in those districts, activity remains well below long-term trends.
• Supply in this sector is showing signs of adjusting to the lower levels of demand. New listings eased again this month compared to last year’s levels. Unlike other property types, this adjustment is impacting inventories. Inventory in March was 1,488 units, 12 per cent below last year’s levels.
• The months of supply has edged down from levels recorded earlier in the year, but due to weak sales, it is elevated compared to last year’s levels.
• Citywide, apartment condominium prices fell by 0.7 per cent from last month and 2.6 per cent over last year. However, in both the North East and South East districts, prices posted a modest gain over last year.

Attached

• There was a slight uptick in attached sales in March due to improvements in both the semi-detached and row sectors. Despite the gains in March, year-to-date sales remain four per cent below last year’s levels and 16 per cent below long-term averages.
• Year-to-date sales have eased, but there have been improvements in the South and South East districts.
• Despite some improvements in sales, citywide months of supply remain elevated.
• Prices continued to trend down for semi-detached product. March’s benchmark price was $391,000, nearly six per cent below last year’s levels and 0.4 per cent below last month’s price. However, the North district saw different results, as tightening months of supply supported a modest gain in prices compared to both last month and last year.
• Row prices in March remained relatively flat compared to February levels, but remain more than four per cent below last year’s levels and over 13 per cent lower than previous highs.

REGIONAL MARKET FACTS

Airdrie

• First quarter sales were seven units less than last years levels, but the number of new listings also declined by 47 units over the same period. This prevented any significant change in inventory levels in the market. However, the months of supply remained elevated averaging five months after the first quarter.
• The persistent oversupply in the market has weighed on prices. City-wide benchmark first quarter prices eased by 1.7 per cent compared to the previous quarter and remain 4.6 per cent below levels recorded in the first quarter of last year. While prices eased across all property types, the largest declines occurred in the apartment sector.

Cochrane

• Cochrane’s first quarter sales and new listings were 114 units and 330 units, respectively, both declining over last years levels. However, the relatively steeper pull-back in sales caused inventories to rise and months of supply to average eight months in the first quarter.
• Persistent oversupply in the market has weighed on prices. After the first quarter benchmark prices eased by 1.6 per cent compared to last year and 1.5 per cent compared to the previous quarter. However, year-over-year declines were higher in the attached sector at 2.7 per cent compared to the detached sector which was 1.5 per cent.

Okotoks

• In the first quarter both sales and new listings slowed compared to last year. However, the pull-back in new listings was not enough to reduce inventory levels in the market and months of supply remained elevated averaging 7.7 months in the first quarter.
• The persistent oversupply has impacted prices. The detached benchmark price averaged $413,733 in the first quarter a 4.8 per cent decline compared to last year and 3.8 per cent below the fourth quarter of 2018. Price declines were slightly higher in the attached sector with the benchmark price totaling $376,433 for the first quarter a five per cent decline over the previous year.

Click here to view the full City of Calgary monthly stats package.

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

• After the first two months of the year, detached sales were 1,079 units. This is 13 per cent below last year’s levels and nearly 30 per cent below long-term averages. Sales eased across all city districts except the North West. Activity remained well below normal levels across all districts of the city.

• The adjustments in new listings ranged from a 15 per cent increase in the North West district to a decline of 23 per cent in the North district. Overall, year-to-date new listings were 2,544 units, nearly two per cent below last year’s levels.
• Despite some adjustments in new listings, average inventories in the detached sector so far this year rose by 25 per cent compared to last year. However, some of the most affordable detached areas, including the North East and East districts, have seen inventories fall compared to last year.
• With detached months of inventory remaining above five months, prices continue to trend down. In February, citywide detached benchmark prices were $475.600, 0.2 per cent below last month and over five per cent below levels recorded last February.

Apartment

• Despite the relative affordability of apartment product, sales activity remained slow with 149 sales.

• Unlike the detached sector, the seventh consecutive year-over-year decline in new listings is starting to have an impact on inventory levels.
• In February, inventory levels totalled 1,301 units. This is nine per cent below levels recorded last year. Inventories did ease, but slow sales in February kept the months of supply near nine months.
• Apartment condominium prices were $252,300 in February, a 1.7 per cent decline compared to last year, but similar to levels recorded last month. Apartment condo prices have fallen by 16 per cent over the previous monthly highs.
• Citywide benchmark prices have eased, but some districts of the city have recorded modest gains. This is not enough to erase previous declines, but points toward price stability in parts of the market.

Attached

• Conditions remained relatively unchanged in the attached sector, as months of inventory remained near seven months and prices have remained unchanged from last month, but over four per cent below last year’s levels.
• Like the apartment sector, activity can vary significantly depending on location. Benchmark prices for semi-detached product eased by over five per cent compared to last year, with the steepest declines occurring in the South and City Centre districts.
• Prices slightly improved in the North district.

• Row prices declined by nearly four per cent compared to last year. Unlike the semi-detached sector, prices eased across all districts compared to last year and remain nearly 14 per cent below monthly highs.

REGIONAL MARKET FACTS

Airdrie

• Housing sales in Airdrie have totalled 150 units in 2019. This is 27 units below levels recorded from the same period last year, but comparable to the average activity occurring over the past 10 years.
• Even though new listings have eased compared to 2018, inventory levels increased to 448 units. Higher inventories and low sales activity have caused months of supply to remain elevated at five months.
• Detached prices have totalled $355,200 In February. This is over four per cent lower than the same period in 2018.

Cochrane

• Year-to-date residential sales in Cochrane remained comparable to last years levels, mostly due to gains in detached sales.

• Although new listings levels in the first two months were comparable to the same period in 2018, there were gains in inventory levels. Overall months of supply levels remained just below seven months.
• Oversupply in the market has caused year-to-date prices to decline compared to last year. On a year-over-year basis, the February detached benchmark price of $413,300 was 1.3 per cent lower than 2018 price levels.

Okotoks

• Sales activity in the first two months of 2019 represents a decline of 30 units over last year. New listings in the market also eased compared to last year, but there were still far more new listings than sales activity. This is causing inventories to rise and months of supply to remain elevated at ten months.
• Persistent oversupply has continued to weigh on benchmark prices with detached home prices at $411,500 in February. This is 1.3 per cent lower than last month and 4.6 per cent lower than the same period last year.