February Housing Statistics 2023
Lowest February Inventory since 2006
Steady with the usual seasonal behaviour sales, new listings and inventory levels all trended up compared to last month. Although, with 1,740 sales and 2,389 new listings, inventory levels progressed only a small amount over the last month and have continued amongst the lowest February levels seen since 2006.
"While higher lending rates are impacting sales activity as expected, we are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gains'' said CREB chief Economist Ann-Marie Lurie. "Prices are still below the May 2022 peak and it is still early in the year. However, if we do not see a shift in supply, we could see further upward pressure on prices over the near term."
Sales and new listings have slowed over the last years reported high for the month. Although sales activity continued more powerful than the long-term trends and levels recorded throughout the 2015 to 2020 period, new listings had fallen below long-term trends.
The market has struggled to move more into more balanced territory forcing more upward pressure on home prices, with a sales-to-new-listings ratio of 73 per cent and a month's supply of under two months. The unadjusted standard price rose nearly two per cent over January levels and last year's prices.
Sales and new listings recorded year-over-year declines over last year's reported high. Levels are still around the lowest seen in February, and the months of supply had fallen below two months, while the seasonal monthly gain did see inventories move up over the last two months.
Further restricted conditions did force the unadjusted standard prices to rise over last month's levels, but at a price of $635,900, it is still below the high recorded in May 2022. We are seeing conditions move into balanced territory for homes priced above $700,000, while supply remains a challenge relative to demand for lower-priced homes.
Sales and new listings had fallen from last year's reported high, like the detached sector despite the seasonal monthly gain. Although inventories are beginning to rise over the levels seen in the past couple months, they continue amongst the lowest levels recorded for February. The extremely low inventory levels forced the months of supply to fall below two months in February, while it is still higher than last year's ultra-low levels, conditions continue to favour the seller.
The unadjusted standard price touched $568,100 in the month of February, almost two per cent higher than last month and a three per cent gain over last February. Extremely tight market conditions assisted to the monthly unadjusted gain in the standard price. However, like detached properties prices continue below the May 2022 peak.
Conditions have continued exceptionally tight in Feburary with only one month of supply and a sales-to-new listings ratio of 87 percent. Row sales have continued relatively strong for February as demand changes toward the affordable product in the market, while they have eased over reported levels.
The constant tight conditions have forced further upward pressure on prices. A monthly gain of over two per cent and a year-over-year gain of nine per cent, the adjusted standard price touched $369,700 in February. Prices have touched a new reported high this month, unlike the other sectors.
Apartment & Condominium
Sales for this sector did not see the same pace of decline as all the other sectors in February mainly due to the level of new listings arriving onto the market. Steady strong sales compared to listings have forced February inventory levels to remain relatively low compared to levels over the past several years and the months of supply had dropped down below two months.
The extreme tight market condition assisted in the upward force on prices. The adjusted apartment standard price touched $286,000, almost three per cent higher than last month and over 11 per cent higher than February 2022. They continue almost seven per cent below the peak levels recorded back in 2014, while prices are still higher than the levels recorded last year in 2022.
Regional Market Facts
The adjusted standard price in February 2023 rose over last month and continue to be comparable to levels seen last year around this time. Although, with a standard price of $487,200, prices continue below the high price of $510,700 recorded back in April 2022.
SImilar to Airdrie, inventory levels have also been on the hike in the city of Cochrane. While February levels are double what was accessible in the market last year. Inventories continue over 40 per cent below long-term trends for the month, Nonetheless, sales and new listings have eased a small amount this year supporting the market change toward more balanced conditions.
The February standard price did improve over last month and it's last year's levels. Although, with an unadjusted price of $492,900, levels are still well below the $522,600 high touched in June of 2022.
Conditions continued extremely tight with sales-to-new-listings ratio of 90 per cent, while both sales and new listings have slowed compared to last year in 2022. With levels coming close to the February 2006 record low, Inventory levels have remained to fall both compared to last month and last year.
As conditions remain to favour the seller, it is not a surprise that we remain to see upward force on home prices. In February, the unadjusted standard price touched $555,000, three per cent higher than last month's and last February's price. Although, similar to other areas, prices continue just shy of the May high of $560,700.