Another bump in interest rates saw more buyers shake out of the market last month. That combined with uncertainty with the economic conditions in Calgary have put a few more plans on hold. This July we did fare better than we have so far this year. While sales have been down nearly 20% for the duration of the year, July sales were only off by 5% compared to 2017. Year to date sales are still off 15% compared to last year at this time. Inventory levels are still 26% higher than July of last year (8,450 homes). Months of supply is 5.5 which is getting real close to a buyer’s market. Once again, it depends which segment you look at.
Detached homes have traditionally buoyed the overall market here in Calgary, however, that segment is starting to show signs of slowing down. Currently it is showing more of a balanced market, but it’s slowly slipping to buyer’s territory. While sales seemed to stabilize, inventory levels are still 36% higher than last year. Months of supply is 4.7 and average days on market is 49. We are starting to see the effects of the last 6 months – benchmark prices sit at $501,300 (down 0.4% from last month and nearly 2% from last July). Buyers are cherry-picking and getting good deals from desperate sellers. The Northeast, North and Northwest districts saw year over year price drops of 3-4%, while the South saw prices increase 0.1% month over month.
Apartment sales were flat year over year (253 units) and sales are still down 7.7% year to date (1,649 units). Inventory levels are down 2% (1,774 units). It’s nice to see that segment flatten out. With that being said, there are plenty of people holding a position in an apartment that are waiting for brighter days. There is still a lot of inventory coming on the market with new product. I still maintain that it will take some time to work through all of that inventory. Months of supply is 7 – well in to buyer’s territory. Average days on market is 62 so definitely taking a bit longer to facilitate sales. The Southeast and City Centre districts saw price drops of only 1% year over year while Northeast, North and East districts saw the biggest price drops of 5-7%. There is an increase in sales for apartments priced $100K-$200K. As product becomes more affordable, buyers are getting their foot in the door.
The semi-detached segment is still dealing with high inventory levels (55% year over year – 911 homes). The lack of sales (down 13% year to date) has been putting considerable pressure on prices. Benchmark sits at $416,200 which is 1% lower than last years levels. I expect to see more of a drop over the next few months. There is tonnes of inventory in the inner city, which represents a great selection for buyers. The West and City Centre districts have the highest months supply (over 7) while the Southeast and Northeast have the lowest months supply (less than 4).
Row housing inventory levels aren’t as high as the other segments (up 16%), however, sales have been slow. Last month, sales were down nearly 18% compared to last July and year to date sales are down 17%. Months of supply is just under 7 and average days on market is 59. Benchmark prices are down 2% compared to last July ($300,300). The biggest price drops are in the Northeast and East (over 6.5% year over year) while the highest inventory levels are in the West, North & Northeast. There has been more sales in the $100K-$200K range. Once again, buyers are getting their foot in the market.
- Sales year to date are down 11% to 732 homes
- Benchmark prices are down 1.3% year over year to $372,386
- Sitting at 5.2 months supply
- Sales year to date are down 3% to 380 homes
- Benchmark prices are flat year over year at $425,714
- Sitting at 6 months supply
- Sales year to date are down 16% to 320 homes
- Benchmark prices are flat year over year to $436,786
- Sitting at 5.4 months supply
- Benchmark prices are at $495,600
- Sitting at 5.7 months supply
- Benchmark prices are at $390,800
- Sitting at 7.2 months supply
Here is the latest labour report for Calgary.
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