Calgary Real Estate Statistics for June 2019
Media release: Buyers' market continues with oversupply decreasing
Declines in new listings coming onto the market in June, helping to scale down the oversupply of homes in Calgary.
Roughly a 19 per cent decrease in new listings year-over-year. Compared to last year sales activity slowed this month by six per cent, but the decline in new listings caused inventory to decrease by 13 per cent in comparison to elevated levels last year.
As CREB® chief economist Ann-Marie Lurie states “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."
“However, it is mostly product priced under $500,000 that is trending towards more balanced conditions.”
With the market still in favour of the buyer - showing 4.3 months of supply - oversupply has decreased and is lessening the reduction in prices. The benchmark price in the city as of June was $425,700, almost four per cent down from levels last year and comparable to last month unadjusted recorded prices.
HOUSING MARKET FACTS
- Sales in June for detached decreased by nine per cent in comparison to last year, which caused sales year-to-date to lessen by almost three per cent. The sales decrease was seen chiefly in homes valued above $500,000.
- Recorded improvements in sales and reductions in oversupply for detached homes valued under $500,000. With the lower end of the market tightening this will likely start to support this sector of the markets price growth.
- Activity improved in both the North West and South zones of the city despite year-to-date city wide sales declines. Easing sales across other zones, although in some of the more affordable zones (East and North East) ratios for supply-to-demand improved in comparison to last year. Causing those markets to be pushed towards more balanced conditions.
- Amount of inventory decreased by almost 18 per cent, despite slower sales activity. The inventory reductions developed throughout all city zones.
- With some moderate monthly improvements, prices have continued to be comparably balanced over the past few months. Nonetheless, the scenario of oversupply has left prices almost 4 per cent less the levels last year.
- Sales for June in apartment condominiums eased, causing sales year-to-date to total 1,292 units. Which is more than seven per cent below levels seen last year. New listings eased by more than 15 per cent, over the same time frame, which helped to reduce a portion of the resale market inventory.
- Months of supply remain elevated at 6.8 months, despite resale inventory levels declining. In conjunction with elevated inventories in the new-home and competing rental markets, this continues to weigh on pricing in the resale market.
- Benchmark price for June was $250,200, which is below levels last year by three per cent. Resulting in a total price adjustment of more than 17 per cent since 2014.
- Attached sales activity continued to improve in June, distinct from other property types. Sales year-to-date was a total of 1,955 units, almost three per cent more than levels last year. With a gain in demand for semi-detached product driving most of the improvements. Sales in attached improved across all zones except the West and North West.
- An easing in new listings compared to last year is helping to reduce market oversupply. Similar to all other sectors, the attached market continues to be oversupplied which is effecting prices.
- Benchmark prices for June was $286,300 for row and $399,700 for semi-detached product. Representing year-over-year decrease of 5.4 and 3.3 per cent respectively.
REGIONAL MARKET FACTS
- Sales activity continued to be relatively steady after the first half of the year. A decrease in new listings, which helps to reduce the supply of inventory on the market and shows movement towards further balanced conditions.
- Oversupply continues to weigh in on prices despite the market trending towards further balanced conditions. June's benchmark price was $334,800, nearly three per cent less than levels last year, but comparable to last month.
- Easing of new listings have helped to reduced inventory on the market and amount of oversupply. Consistent with longer-term trends, sales activity in Cochrane continued to remain steady in comparison to last year.
- Benchmark price for June was $404,000, which was very much alike last month and more than five per cent less than levels last year. There is a descending pressure on prices, with the market continuing to favour the buyer, despite some recent adjustments.
- Although still below longer-term averages, sales have continued to remain stable compared to last year. New listings however are starting to adjust, which continues to drive down inventory levels, causing the market to move in the direction of further balanced conditions.
- Benchmark price as of June was $414,900, 4.1 per cent less than levels last year and 1.6 per cent more than last month. As the market is moving in the direction of further balanced conditions, this may help create more strength in pricing.