Calgary Real Estate Market Trends
Calgary has long been considered one of the best cities in Canada to live. In the past 10 years, the strength of the area's oil & gas economy have created an incredible environment for lifestyle and real estate investment, a trend analysts expect will continue as the price of oil recovers.
While Calgary's real estate market is far more resilient to commodity prices than it once was, the city has not been immune. Despite home sales showing Yr/Yr declines ranging between ten and forty percent since 2014, home prices have not dropped by the 10% predicted 2 years ago. In the under $700,000 price range, most homes are selling for low-to-medium single digit percentages less than they did in the same period in 2014.
Past Month Calgary Market Stats - October 2016
Now a Seller's Market in lower price ranges
- Detached Home Median Sale Price $464,500 (-1.2% Yr/Yr)
- Detached Home Average Sale Price $530,636 (+2.2% Yr/Yr)
- Detached Home Benchmark Sale Price $502,200 (-3.2% Yr/Yr)
- Apartment Median Sale Price $250,000 (-12.6% Yr/Yr)
- Apartment Average Sale Price $289,127 (-9.1% Yr/Yr)
- Apartment Benchmark Sale Price $273,800 (-6.3% Yr/Yr)
- Average Days on Market: DOM 42 Days for Detached Calgary Homes vs. 38 days last year. DOM 54 days for Apartments vs. 50 days last October.
- 1,282 detached homes & apartments sold on the Calgary MLS® System in October, up 15.6% Yr/Yr.
- Detached Calgary homes sales were 18.6% higher than last year, while apartment sales were up 5.9% yr/yr.
- Citywide listing inventory is now 2.5 months for detached homes vs. 3.6 months than last year.
- Apartment listing inventory is 6.1 months vs 5.7 months last year. A listing inventory of 2 months or less indicates a Seller's market, 2-4 months a Balanced market, and over 4 months a Buyer's market.
- 10.6% of all homes sold for full price or more in October.
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Calgary Market Forecast 2016
(January 15 2016): Calgary's Real Estate Board CREB® released their Market Forecast for 2016 earlier this week, predicting a sluggish market for the first half of the year.
CREB® predicts sales of Calgary homes and condos will decrease 2.2% this year. Detached home sales are expected to drop 2.5%, attached homes by 1.5%, and apartments by 2.0%.
CREB's annualized benchmark price is projected to fall in all three sectors:
- Detached Calgary home prices to fall by 3.2%,
- Attached Calgary home prices to fall by 3.5%,
- Calgary apartment condo prices to fall by 4.2% from 2015 levels
Until the price of oil finds a bottom, home and apartment prices will be weaker across all price ranges. Higher valued properties will be under more price pressure than more affordable homes.
First-time and move-up buyers have the opportunity to choose from a great selection of properties at historically low interest rates. Timing the bottom of the market is a dangerous game, as analysts expect significantly higher oil prices by the second half of 2016.
Seller's are advised to work with a real estate professional they trust, and strategize as regards to timing and pricing.
It's not just Calgary home for sale listings that are performing well, either. Alberta's booming economy attracts workers from all over the country in the oil and high tech sectors, pushing up demand for all types of property. Calgary is now second in the nation to Toronto for its concentration of corporate head offices, with investment return for downtown property commonly topping 50 per cent. Calgary is also the nation leader for industrial real estate return.
Property Market Trend
With the slower economy, Calgary homes are now selling in about 38 days on market *March 2016*. Just as always, well priced properties only remain on the MLS® System a short time before they are sold, as buyers seek to close the deal with as little competition as possible.
If you're in the market for a Calgary home for sale, you definitely want to have a leg up on other buyers. Working with a member of the Jim Sparrow Team - all experienced Calgary REALTOR's - is a decision that you'll be glad you made.
Please fill out our contact form, or call 403-703-2404 for assistance anytime you need to know more about Calgary real estate or any property that interests you. When you're ready to take the next step toward purchasing a home, we're here to help.
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