After the month of April and the market is still on track for recovery. Although it’s been the detached and semi-detached market that has been buoying the numbers over the last year, row housing looks to be rebounding as well. That segment’s inventory numbers are down 8.5% to 863 units and sales were up 19% compared to last year. Benchmark prices have jumped up 0.59% since last month, however, prices are still down 2.8% from last year. There is higher supply in the NW and SE districts while the West & NE have seen price gains since last month of approximately 2%. Overall inventory levels for the city are down 12% to 5,500 units.
Prices in the city stayed flat from last month and are down 0.9% since this time last year. The market is showing signs of stabilization. Prices in the detached segment stayed flat ($504,100) while apartments sagged slightly (0.2% since last month to $269,200). Semi detached prices are up 1.7% since last April sitting at $390,200 and row housing is down 2.8% year over year to $305,900.
Sales overall for the city saw an 8% increase year over year. While we can take this as a positive, last April’s sales were near historical lows for the city. Detached sales were up 6%. Semi-detached and row housing sales were up nearly 20%. Particularly interesting is the row housing segment. Characterized by high supply for the last 12 months, buyers are now finding the price is right for them to make a move. Months of supply now sits at 3.9 which puts it in more of a balanced territory. The best deals are in the East district as year over year prices are down 8.3%. I have also seen an increase in sales activity in the $2M+ range. Luxury home prices have come down enough and people see an opportunity to get a deal before prices start going in the other direction.
Different areas of the city and segments have quite different stories when it comes to supply. Currently there isn’t much new product available for single family homes in the SE so it is putting pressure on already tight inventory situation (less than 2 months supply). I have helped a couple buyers get in to the market and have seen properties sell quick and sometimes with multiple offers. The NW and South districts are in the same boat. The apartment segment’s inventory is up 4% to 693 units. The NE and East districts have plenty of stock to choose from while most of the other districts sit at 4-6 months supply. This is quite an improvement to what we have seen over the last couple years in this segment. While selling a condo isn’t impossible (there were 287 sales last month), you have to be better than your competition.
Here are some highlights outside of Calgary:
Airdrie – currently 3.5 months supply and benchmark prices are $356,500. Sales are above the 10 year average.
Cochrane – sales are up. This is the 3rd year in a row that sales have been above the 10 year average for April. Prices have been flat since last fall.
Okotoks – has been seeing lower inventory levels.
Chestermere & Strathmore – year over year price growth
Overall, the recovery period is expected to be slow and drawn out. Prices gains for 2017 are expected to be modest. It is a great time to take advantage of a stable market before we hit our next uptick in the city.
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