Calgary Real Estate Statistics for June 2020
Amidst COVID-19 pandemic sales decline by two percent from last year
Following the three months of COVID-19 weighing profoundly on the housing market, June sales activity shows an increase over the previous month, totalling 1,747 units.
Caution continues, as monthly sales are almost two percent less than the activity reported last year. Yet this represents a notable improvement in comparison to the past several months, where declines year-over-year surpassed 40 percent.
“Recent price declines, easing mortgage rates and early easing of social restrictions are likely contributing to the better-than-expected sales this month,” said CREB® chief economist Ann-Marie Lurie.
“However, the market remains far from normal. Challenges, such as double-digit unemployment rates, will continue to weigh on the market for months to come.”
Total of 3,335 new listings in June, which was a six percent increase over last year. Causing inventories to increase, but remained considerably below levels last year.
Sales activity was remarkable enough to prompt the months of supply to drop below four months for the first time following May 2019 despite some current monthly increases. It should help to lessen the downward pressure on prices if this course continues.
Benchmark prices for residential are similar to last month, although they remain almost three percent less than levels last year.
HOUSING MARKET FACTS
- June sales activity totalled 1,092 units. Which is only somewhat less than levels last year and an increase over the past few months.
- Year-over year sales activity increased, despite citywide declines, in the City Centre, North East, North, South East, and East zones.
- New listings also saw an increase in June, with that monthly increases in inventory. Improved sales offset the growth in new listings, causing the months of supply to trend toward more balanced conditions.
- Benchmark prices for detached were two percent less than levels last year, yet remained nearly consistent compared to the previous month. Price decreases year-over-year recorded for most of the zones, with the most notable declines in the North West, North East and City Centre zones.
- Apartments sales in June totalled 227 units. Almost 13 percent less than levels last year and 30 percent below averages longer-term, yet an improvement from last month of 136 units.
- Increase in new listings in comparison to the previous year and the last month. Generating monthly inventory increases; still, inventory levels remain lower than levels last year.
- Months of supply has decreased from the elevated levels reported over the last few months.
- Benchmark prices recorded a year-over-year decrease of almost four percent, as it continued to trend down this month, totalling $240,900.
- In terms of relative reductions in both sales and prices, the resale apartment sector continues to be affected the greatest.
- The attached sector has been the least impacted by the COVID-19 pandemic. With this sector generally offering a more affordable alternative to detached. Sales for June were almost three percent more than levels last year and remain comparable to averages longer-term.
- Like the detached, the attached sector observed new listings increase in comparison to both the previous month and last year. Yet, the months of supply improved from levels last year and shows movement to more balanced conditions.
- Benchmark prices continue to remain relatively constant compared to last month, yet fell by almost four percent compared to last year. Declines in the higher prices in this sector could contribute to the improved activity in sales.
REGIONAL MARKET FACTS
- June sales climbed above levels last year, following the previous three months declines. Though the monthly increase was substantial, this was not enough to compensate for the previous pullback, as sales year-to-date remained almost eight percent under levels last year.
- New listings in Airdrie also increased, but inventory levels remained considerably less than levels last year. The months of supply are lower than pre-COVID-19 levels, dropping below three months. If the balance of supply/demand remains in this range, we may begin to observe some of the downwards pressure on price ease.
- Benchmark price for Airdrie in June was $327,400, a decrease in comparison to last month and more than two percent less than levels last year. Prices year-to-date continue just under levels last year.
- Cochrane sales improved over levels last year this month. New listings also increased, creating some growth in inventory levels. Yet sales improved, outpacing the increases in inventory, helping the months of supply to trend down.
- The balance of supply/demand is improving; however, it takes time to reflect this in prices. The benchmark price for June was $394,900. Almost four percent less than last year and somewhat less than the previous month. Before observing any impact on home prices, it will possibly take months of balanced conditions.
- Sales in June remained moderately stable in comparison to levels last year. With abrupt decreases in April and May, sales year-to-date sales remained well below both longer-term trends and the previous year's levels.
- Monthy increases in inventory levels with the current additions to new listings. Though not enough to compensate for the increase in monthly sales, causing the months of supply to trend down to three months.
- Prior to the COVID-19 pandemic, benchmark prices were falling, but the decline increased during the past several months. Benchmark prices in June remained moderately stable in comparison to the previous month but remained over four percent less than levels last year.