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 is not immune. Despite home sales showing Yr/Yr declines ranging between ten and forty percent in 2015, most home prices have not dropped by more than three or four percent. In fact, in the under $500,000 price range, most homes are selling for the same or more than they did in the same period in 2014.
Calgary Real Estate Market: March 2016 Stats
Calgary has a Buyer's Market in all price ranges
- Median Detached Home Sale Price was $480,000, up 1.1% Yr/Yr
- Average Detached home sale price was $538,017 down 1.4% Yr/Yr
- Apartment Median sale price was $275,000 up 1.3% Yr/Yr
- Apartment Average sale price was $298,850 down 2.3% Yr/Yr
- Average Days on Market (DOM) was 41 Days for detached Calgary homes sold vs. 37 days last March. Average DOM for Calgary apartment listings was 48 days vs. 43 days last March.
- There were 1,262 detached homes & apartments sold on the Calgary MLS® System in March 2016, down 9% Yr/Yr.
1,005 detached Calgary homes sold last month, down 7% Yr/Yr. There were 257 Calgary apartments sold, 15% less than the same period last year *Sales reflect residential metro Calgary MLS® system sales only*
- As of March 1st, there are 3.1 months of detached Calgary home inventory on the market, 2% more listings than the same time last year. Apartment condo inventory now has 6.0 months of supply vs. 4.7 months last year. Listing inventory reflects the time required to sell all current listings if no additional listings were added
- Absorption rate for detached Calgary homes was 33% in March vs. 36% last year.
Calgary apartment condos had a 17% absorption rate last month vs. 21% last year.
- 10% of all detached homes sales in Calgary sold for list price or higher last month. By comparison, last March 11% of all detached home sales were at or above list price
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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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