Calgary sales growth in October driven by detached home sales
October sales in the city reached 1,764 units, with substantial gains in the detached sector. Well above longer-term averages and a 23 percent increase over last year.
The gain in citywide residential sales outpaced the growth in new listings, supporting tighter market conditions and improving prices.
"Over the past several years, higher lending rates and the stress test pushed many out of the detached housing market. However, recent declines in rates, combined with prices that are lower than several years ago, have brought back some of that demand," said CREB® chief economist Ann-Marie Lurie.
"This is helping support more balanced conditions and price improvements in the market. However, price improvements are not occurring across all product type and price ranges and downside risk still hangs over future conditions."
Improving sales over the past four months was not...
Home sales climb along with market supply
Sales activity in September surged to 1,702 units, the most active September since 2014.
September's new listings increased over the month, but levels were comparable to the prior year. The market supply is down 12 percent compared to last year, with the increase in sales relative to new listings, preventing any monthly gains in inventory levels.
"The recent rise in new listings, combined with low lending rates and softness in prices, has helped support some of the recent upward trend in sales," said CREB® chief economist Ann-Marie Lurie.
"However, conditions vary significantly based on the price range and property type."
Supply adjustments relative to demand is causing the housing market to shift toward more balanced conditions. Currently, 3.7 months of supply represents the most balanced conditions observed in September for over five years. Helping support some of the more recent monthly gains in prices....
The strength of the Canadian real estate market has continued to prove itself throughout the pandemic. RE/MAX Canada expects growth for the remainder of 2020. However, we're not out of the woods yet, with an active market for the foreseeable future and balanced conditions at the national level into 2021, which is great news for Canadians.
The Canada Mortgage and Housing Corporation's Chief Economist Bob Dugan told reporters at a press conference that the agency stands by its previous forecast in May that warned of a drop in Canadian house prices between nine and 18%.
"I'm not convinced that we have a sustainable basis for housing demand in the economic disturbance that's going on related to COVID-19," Dugan said. "That's why I say I stand by the forecasts."
RE/MAX expressed their opposition over CMHC's forecasts in the spring. Dugan's statement continues to raise eyebrows – RE/MAX's and other industry members as well, as the...
Home sales in August held steady despite the continued impact of COVID-19
In August, total residential sales were relatively stable compared to last year with year-over-year gains in the detached and row sectors, which offset declines in the semi-detached and apartment products.
August sales were reported at 1,573, which in comparison to the past five years remained consistent. Sales activity year-to-date remained almost 13 percent less than last year.
“Recent national reports have shown a bounce back to new record levels over the past several months. Calgary has seen improvements over the lows recorded during the lockdowns but is far from record levels,” said CREB® chief...
Economic uncertainty continues while detached and semi-detached home sales report an increase
With higher sales for detached and semi-detached properties, July sales total increased over levels last year. Year-to-date sales persist at 15 percent lower than last year's levels, despite the improvements in July.
"There have been improvements relative to the lowest sales levels caused by COVID-19, but it is too early to say things are shifting back to pre-pandemic levels," said CREB® chief economist Ann-Marie Lurie.
"We are still facing record-high unemployment rates, significant government aid, and uncertainty throughout the business community....
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...
Impact of COVID-19's on the Calgary housing market continues
In May, Calgary's housing market activity remained slow, though sales surpassed the lows from April, which saw fewer than 600 sales.
May sales totalled 1,080 units, a 44 percent decrease from last year's totals.
"The initial shock of COVID-19 and social distancing measure is starting to ease. This is bringing some buyers and sellers back to the market. However, this market continues to remain far from normal and prices are trending down," said CREB® chief economist Ann-Marie Lurie.
"Activity has also shifted toward more affordable product, which is likely causing differing trends depending on product type and price range."
Sales have declined in all price ranges, but a more significant percentage of sales are below $500,000.
The drop in inventory in the higher price ranges has not been enough in comparison to the decrease in sales. The months of supply is higher than the already elevated...
Impact of COVID-19 on Calgary real estate market
With social distancing measures in place, the housing market is adjusting to the effects of COVID-19.
April sales were 573 units, a decrease of 63 percent over last year.
"The decline in home sales does not come as a surprise. The combined impact of COVID-19 and the situation in the energy sector is causing housing demand to fall," said CREB® chief economist Ann-Marie Lurie.
"Demand is also falling faster than supply. This is keeping the market in buyers' territory and weighing on prices."
Eased sales activity seen in all price ranges, but the largest decreases occurred in homes priced over $600,000.
With more of the sales seen in the lower price ranges, the average price decrease was higher than eight percent. Average prices for homes are also declining, indicated by the benchmark price, that dropped by almost two percent in comparison to last year.
New listings for April recorded 1,425 units,...
COVID-19 weighing against the housing market
Following a solid start to 2020, economic circumstances have dramatically shifted, as COVID-19 is affecting all aspects of society.
The economic impact is across many industries, including the housing market.
Sales activity for March began the month strong only quickly turned, as concerns regarding the spread of COVID-19 brought about social distancing measures, which caused a substantial impact on businesses and employment.
"This is an unprecedented time with a significant amount of uncertainty coming from both the wide impact of the pandemic and dramatic shift in the energy sector. It is not a surprise to see these concerns also weigh on the housing market," said CREB® chief economist Ann-Marie Lurie.
By the end of March, sales activity had fallen 11 percent compared to last year. This is 37 percent lower than long-term averages. The drop in sales pushed March levels to the lowest recorded since 1995.
Home Sales Observe a Boost
This February shows an increase in sales in the double-digits, although last February was one of the lowest activity levels since the late '90s.
With the additional day this February, sales for this month totalled 1,197 units. With these two factors combined resulted in a 23 percent growth over last year, though sales persist well below trends longer-term and are similar to more moderate levels recorded over the past five years.
"However, this should not diminish the fact that conditions are still improving," said CREB® chief economist Ann-Marie Lurie.
"Calgary is continuing to see slow reductions in the amount of oversupply in the market, from modest changes in demand and reductions in supply. This needs to occur before we can see more stability in prices."
The unadjusted benchmark price overall for February was $416,900. Comparable to last month, yet about one percent less than levels last year. Overall, prices continue at almost 11...