If you’ve noticed that there seems to be a lot of “For Sale” signs around Calgary lately, well, you’re right. With the Spring rush many people decided to put their house on the market, pushing supply levels well past sales. So we continue on with a persistent Buyers’ market in Calgary.
The Calgary Real Estate Board (CREB) recently released housing statistics for June and sales activity continued to be pretty weak. There were 1,896 total units sold in June, down 11 % from last year and 12 % below long-term averages. Through all of this, more new listings were added and we are sitting at 4.7 month’s worth of supply for all property types.
Naturally, this is causing prices to drop. The city-wide benchmark price in June totaled $436,500. This is just below last month and 1.13 % below last year’s levels.
I always look closely at what detached homes are doing because they make up the brunt of sales and inventory. In June, detached homes accounted for over 60 per cent of overall sales activity and over 54 per cent of the inventory, with 4,817 units. There is one exception to this oversupply trend, as inventory levels for homes priced under $500,000 remain in sharp demand. Apartment sales totaled 1,396 units, nearly 9% below last year and 24% below the long term average.
Just so you don’t think this report is all doom and gloom (which I don’t think it is) CREB did say they are seeing oversupply easing in some districts already and expect the drop in benchmark prices to ease up in the coming months.
So what does this mean for you – the consumer? Well, if you’re on the hunt for a new place, first of all make sure you get pre-approval for an appropriate mortgage so you don’t look at places you can’t afford, especially in the current climate of increasing interest rates. Once you settle on a budget, you’ll find that this market gives you more options to consider and the pressure to buy quickly is lessened. With a little patience, buyers can find a great-valued home and not feel like they have to compromise on what they want when it comes to the location, amenities or condition of the home. Take advantage of that, take your time and the home you really want will emerge.
If you’re listing your place, then patience is also definitely recommended. Have a long and thorough discussion with your Realtor and be sure to ask for as much specific neighbourhood market data as possible so you can be realistic and competitive with your list price. Be flexible. The Average Days on Market in Calgary for June was 41 for detached homes and 59 for apartments. If you want to sell your place, be open to price reductions and buyers’ conditions. The recent mortgage rule changes and higher lending rates are making some buyers even more cautious so if you have an offer, be open to it and make it work.
Also, ask your Realtor how they will market and promote your listing so it is seen by serious, targeted buyers. On top of the MLS system, Amie and I use multiple social media channels, Open Houses, targeted advertising and our network of realtors, investors, developers and service providers to get the word out on your listing.
If you’d like to chat about the market – or anything else for that matter – give me or Amie a call or text. We’d love to hear from you.
For now, get out there and enjoy this beautiful Summer, wherever it may take you!