The Spread Between Sales And Inventory Grows In September
After seeing some improvement for the first half of 2017, September has brought on some less than desirable market changes. Inventory is outpacing sales, and it could have an impact on home prices in Calgary. Below is a brief summary of some interesting statistics drawn from our local Real Estate Market. If you'd like a copy of the CREB® September Monthly Statistics report, Contact Us to request a copy. We can also send you a Monthly Statistic report for your specific community.
Year to date sales at September month end totalled 15,004, placing us over 7% higher than last year for the same time period (13,995 September 2016 YTD). Despite the improvements in sales numbers this year, September has been a tough month for sellers, with total inventory in September reaching 6,861, a whopping 16.66% higher than last September. The buyers have been watching the market from the sidelines with total September sales coming in at 1,462, which is down a modest 1% from last year.
New Listings Spike
The month of September saw 3,266 new listings come to market in all property types across Calgary. This represents an increase over last September of nearly 10%. Slow sales thus far in the 2017 Fall Market have been putting downward pressure on prices, and will likely increase Days On Market to sell a home, especially when sellers are not recognizing and adapting to the changing market conditions.
Listings and Sales Below Calgary's 10 Year Averages
The year to date numbers for the Calgary market has shown signs of improvement over 2016, however the gap between our current inventory and sales numbers is likely to cause sellers some stress. Buyers, however, have a vast supply of homes to chose from, depressed prices, and despite recent interest rate increases, we are still in a low interest rate environment.
“In some segments, rising new home inventories are also impacting total housing supply. Ultimately, prices are affected. However, this inventory also opens up opportunity for buyers to step up into a home that was financially unattainable.” - CREB Chief Economist Anne-Marie Lurie
Calgary's market segments, including detached homes, attached, and apartment style homes have been experiencing variances in the levels of supply. The apartment and attached segments are still the toughest markets, with these segments reaching the highest inventory levels on record for the month of September.
If you're considering buying or selling in Calgary or the surrounding area - contact us to get some detailed market information on the specific property type and style, and for the specific communities or areas that will impact your transaction. Down markets tend to be a good time to make a move up in real estate, and they are of course a great time for first time home buyers to enter the market. Some are nervous and sitting on the sidelines fearing further declines. CREB is not forecasting any catastrophic market crash, although I know the market statistics give good reason to believe there will likely be some further softening in prices. Any wise investor knows that only a fool tries to time the market. By the time the market has made a recognizable turn to the upside, you will have missed buying at the low you are waiting for.
A good quote to remember: "Real estate is not about timing the market, but TIME-IN the market." - Unknown
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