Elevated sales guided by affordable product and inventory decline
The third-quarter hustle continues to show signs of growth. Comparable to last quarter, a great deal of the advancement in the market has been guided by supply corrections.
Nonetheless, the housing market has also improved this quarter from solid year-over-year growth in sales activity. A decline in prices has likely supported some of the boosts in demand. Additionally, sales growth has been guided by products priced less than $500,000.
“This is a market with divergent trends. The lower end of the market is recording improving sales and easing supply. This is supporting more stability in prices. However, at the higher end of the market we continue to see slower sales and rising supply,” said CREB® chief economist Ann-Marie Lurie.
“Persistent struggles in the overall economy have caused a shift in salary expectations, along with adjustments...
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Media release: Sales improving and inventory declines for fourth month in a row
Compared to last year, inventories in the market declined for the fourth consecutive month. Due to the declines in new listings and improving sales.
A continuation in supply reduction compared to sales is needed to aid more balanced conditions, but the market continues to support the buyer.
“We are starting to see reductions in supply across the resale, rental and new-home markets,” said CREB® chief economist Ann-Marie Lurie.
“This adjustment in supply to the lower levels of demand will support more balanced conditions. It is starting to support more stability in prices. If this continues, the housing market should be better positioned for recovery as we move into 2020.”
Sales activity year-to-date remains well below longer-term averages and just below levels last year. Yet the inventory reduction has made the months of supply...
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...
Media release: Improvements in sales activity for the second consecutive month
A decrease in new listings and sales growth in May. Easing the pressure on inventory levels, finishing the month at 7,467 units, a decrease of 12 per cent in comparison to last year.
Months of supply down to just under four months due to improved sales and relative inventory levels. Although improved from five months of supply recorded last May, oversupply remains.
May citywide sales totalled 1,921 units, an 11 per cent increase over levels last year. Yet, sales maintain at 10 per cent below trends longer-term. Growth in sales was chiefly directed by homes worth under $500,000.
CREB® chief economist Ann-Marie Lurie states, “While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes.”
“This has started to...
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Soft Job Market and Restrictions on Lending Influenced 2018's Real Estate Market
City of Calgary, Tost Realty Group, January 2, 2019
As oversupply is still a pertinent issue, prices during December slowed by one per cent, and are currently situated at over three percent below this time last year.
CREB chief economist Ann-Marie Lurie stated last month that “Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year”. This definitely contributed to a heightened supply in the resale market, resulting in a decline in price.
Sales in December sat at a total of 794 units, a 21 per cent decline over the previous year. Overall year-to-date sales in the city sat at a total of 16, 144 units, a 14 per cent dip from two years ago, and 20 percent below previously standing long-term averages.
The Inventory levels statistic for December sat at 4,904...
Economic Conditions Continue to Challenge Vitality of Resale Market
City of Calgary, Dec. 3, 2018
Sales during the month of November sat at a total of 1,171 units, remaining below long-standing averages.
For the year up to this point, monitored sales activity has rang in at 15,349 units, displaying a 14 per cent decline over last year, and nearly 20 per cent below standing averages.
During November, New listings eased by seven per cent compared to last year. Due to this substantial shift in new listings, further inventory gains have been prevented. Overall inventory is currently at 6,501 units, remaining slightly above the 5,683 units in inventory seen last year, and 32 percent higher than in a typical November.
Throughout the month of November, the citywide benchmark price was $422,600, hovering near one percent lower than last month, and at 3 percent lower than levels seen during 2017. Across...
Oversupplied Market Ultimately Weighs on Prices
City of Calgary, November 1, 2018
Inventory levels are elevated when compared alongside sales, which is causing Calgary housing prices to ease a bit more.
Benchmark prices in the entire city during October totalled $426,300, which is a downward trend for the fifth month in a row. This resulted ultimately in a year-over-year decline of 2.9 percent.
Chief economist Ann-Marie Lurie of CREB claimed avidly that job growth in the city remained a dire concern, as unemployment levels remain well above expected. The overall cost of ownership continuing to rise also will ultimately provide a burden of weight on the housing market and demand.
Overall sales and inventories totaled 7,345 and 1,322 during the month of October. Typical monthly levels usually hover around 5.6, and while there is a bit of slowing in listing growth, this ultimately prevents further inventory risings. Currently the month of October, levels...