Calgary's Real Estate Market Continues to Show Signs of Improvement
The Calgary area is holding it's ground in the movement to stronger market conditions. April 2017 saw 1917 sales, which is up 8.43% from April of 2016. The average price of a home in Calgary climbed 3.87% to $495,387 when compared year over year. The price stabilization is in part due to the reduced inventory we have seen thus far. Inventory numbers for the month of April sat at 5,495 - which is 12.09% less inventory compared to last April.
The current inventory levels reflect 2.8 months of supply - meaning our market is balanced, with a slight advantage to sellers.
Creb identifies 3 months of supply on the market to be a balanced market. Less than 3 months indicates a sellers market, and more than 3 months indicates a buyers market. The current inventory levels reflect 2.8 months of supply - meaning our market is relatively balanced, with a slight advantage to sellers. This is a recognizable change in the market conditions, when compared to April of 2016, which saw 3.54 months of supply.
Many buyers that I am working with are recognizing that they need to act fairly quick when they find a property they like. Some buyers have been repeatedly disappointed when I have to tell them that a property they were interested in is now conditionally sold, or firmly sold.
The average days on market to sell a home has also reduced, taking 32 days to sell a detached property. This is down from 44 last April. Well priced homes however, are often selling in a matter of days or even hours in some cases. Multiple offer situations are a surprisingly common occurrence in this market - though it's rare for the final sale price to be higher than the list price. That being said, of the 1917 total sales, 178 sold for over list price, while an additional 66 sold for exactly list price. That means in April, 244 homes sold for list price or higher - representing about 12.7% of total sales.
Many buyers that I am working with are recognizing that they need to act fairly quickly when they find a property they like. Some buyers have been repeatedly disappointed when I have to tell them that a property they were interested in is now conditionally sold, or firmly sold.
Year To Date Statistics Also Point to a Stronger Market
At the end of April, year to date sales sat at 6093, which is an impressive 15.99% increase over the same period of 2016. The increased sales activity, combined with a 5.87% reduction on total new listings (year to date), is helping with strengthening of prices.
We still have an oversupply of apartment style condos, and we are still seeing adjustments to the down side in that segment. We have seen an increase in apartment sales activity(17.78% YTD), however that has been dulled by a modest increase in apartment inventory. New apartment listings are actually up 1.82%YTD when compared to 2016, which is a heavy contrast to the inventory adjustments we have seen in the rest of the market.
The detached and attached segment has seen a reduction year to date in new listings, down 8.27%, and 7.20% respectively. Sales activity year to date is up with a 14.58% increase in YTD sales for detached homes, and an impressive 18.83% increase in attached sales when compared to the same period of 2016.
Stability in the market is great to see, but we are not out of the woods yet. I am cautiously optimistic that our real estate market will continue to improve. Only time will tell.
“Improvements in the employment situation were necessary to prevent further declines in the housing sector. However, economic recovery is still expected to be slow, impacting the pace and quality of job growth. Based on current expectations this should translate into a more prolonged period of recovery in the housing market.” - Ann-Marie Lurie, CREB Chief Economist.
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