Welcome to the Spring Real Estate Market
"We are entering the most active quarters in the housing market with more inventory, which could create some price fluctuation. However, the improving economy is expected to prevent overall prices from slipping by significant amounts." said CREB chief economist Ann-Marie Lurie.
March of this year had 3,447 new listings come to the market in Calgary, a 6.39% increase over last march. Increased listings as we approach the spring market season is expected, but what may hurt prices in Calgary is the slumping sales numbers. Last month there were only 1,374 sales, representing more than a 27% slip in sales compared to March 2017. The addition of the new listings, with slumping sales left us with an inventory of 6,371 listings, 24.34% higher than last year.
Apartments VS Detached VS Attached
Each market segment is behaving somewhat differently, and the market conditions vary throughout different communities in Calgary. The slump in sales was fairly consistent across the apartment, detached and attached segments of the market, all coming in around 26-27% lower than last year. New listings however had larger variations.
The detached segment made up 1,871 of the new listings last month(4.18% higher than last year). Just over 19% increase in attached listings, but apartments were relatively flat with 721 new listings compared to 726 new listings last March.
The chart below breaks down the numbers, clearly showing our increasing inventory, and slower sales.
How is this impacting prices?
A single month of increased inventory is generally not enough to have a material impact on home prices. But, what we do know is that if the trend of increased listings and fewer sales continues, we will see downward pressure on home prices. Thus far, the benchmark price of detached and attached homes has remained relatively flat over last march, while apartments have seen the benchmark price drop by nearly 3% versus last year.
Whats your home worth??
Each community and property type is experiencing differing market conditions. Some communities are seeing detached homes around $400,000 or less selling in a matter of hours. So despite the general news that new listings are up, and sales are down, there is still some healthy activity happening in the market. If really depends on which Calgary community you are in, along with the type of property you own, and its own condition and characteristics.
Remember that you shouldn't rely on your City of Calgary Property Assessment to determine your homes market value. It's important to have a realtor provide you with recent market data, and complete a proper Comparative Market Analysis on your home. As we experienced this past month - the market can change quickly, so contact us for up to date info, and to get a free valuation on your home.