Calgary Real Estate Market Trends
Calgary has long been considered one of the best cities in Canada to live. In the past 15 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 the city was not immune to the recent economic downturn, Calgary's real estate market has proven to be more resilient to lower commodity prices than it was in the early '80's. Despite lower property sales volume, the majority of homes have seen only single digit declines in value.
While oil prices have returned to $60/barrel range, an oversupply of listings has put downward price pressure on all segments of Calgary real estate. 2019 benchmark prices are running 5% lower than last year.
If you have any questions about our current market please give us a call.
What Happened Last Month
Calgary Sales Stats - May 2019
Buyer's Market Continues with Declining Listings
- Detached SF Benchmark Sale Price $487,900 (down 3.9% Yr/Yr)
- Detached SF Median Sale Price $480,500 (down 3.9% Yr/Yr)
- Condo Benchmark Sale Price $248,200 (down 2.5% Yr/Yr)
- Condo Median Sale Price $242,000 (down 2.9% Yr/Yr)
- Days on Market: Detached 50 days; Condos 70 days
- Detached home sales: up 12% Yr/Yr
- Condo sales: up 12% Yr/Yr
- Detached Sales to New Listing ratio: 59% (up from 40% last year)
- Detached Sales to Active Listing ratio: 30% (up from 24% last year)
- Condo Sales to New Listing ratio: 50% (up from 36% last year)
- Condo Sales to Active Listing ratio: 19% (up from 15% last year)
- Detached home Listing Inventory: 3.3 months vs 4.3 months last year
- Condo listing inventory is now 5.3 months vs 6.8 months last year
(Listing inventories of less than 2 months indicates a Seller's market,
2-4 months is a Balanced market, while over 4 months is a Buyer's market)
- 8% of all Calgary homes sold for full price or more in May vs. 11% last year
Search for Calgary Homes:
Third Quarter 2017 Update
To no one's surprise, third quarter 2017 sales were marginally lower than 2016 *with the exception of attached / semi-detached homes*. The Alberta economy turned the corner in the second half of last year, and Calgary's real estate market finished 2016 with a strong second half.
2017 Third Quarter numbers vs 2016:
- Single family detached home sales down 4.0%
- Attached home sales up 2.0%
- Condo (apartment) sales down 1.5%
Year over year benchmark prices have risen in all three property segments with the exception of condo (apartments):
- Single family detached home price up 1.1%
- Attached home price up 1.54%
- Apartment (condo) price down 2.8%
Calgary Market Forecast 2017
(January 14 2017): Calgary's Real Estate Board CREB® released the 2017 Market Forecast yesterday, and they're predicting signs of an economic recovery and stabilization of the citiy's housing market.
Total city MLS® sales volume are forecast to increase 3% over last year:
- Single family detached home sales to rise 3.0%
- Attached home sales to rise 3.5%
- Apartment (condo) sales to rise 2.0%
Calgary's economic recovery is expected to accelerate in 2017. Home prices are expected to stabilize or perhaps show small gains; the apartment sector will continue to show downward pressure on prices.
Overall City of Calgary MLS® sale prices are expected to rise 0.3%:
- Single family detached home price to rise 0.8%
- Attached home price to rise 0.5%
- Apartment (condo) price to decline 2.0%
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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