'Gradual recovery'. That's what the pundits are calling it. The spring market has come to completion and the market is looking quite a bit better than it did a year ago. As we roll in to the dog days of summer, the number of active listings is on the rise (currently sitting over 6600 listings). While this is typical for the summer months, the level of inventory is substantially higher than this time last year - to the tune of 11%. No need to raise the alarm yet, though. Sales have outpaced last year by 12% year to date. While the increase in sales is a good sign, the increase in inventory stands to be monitored. Alberta and Calgary are still dealing with low migration numbers which in previous years has bolstered demand.
So far this year, the detached segment has been carrying the load, however, we are starting to see an increase in sales in the attached properties as well. While semi-detached (non condo) properties have been mirroring the detached segment (more of a seller's market & stable prices), the row housing picked up some steam last month. Sales were up 10% (276 units) and inventory levels remaind flat year over year as new listings were up 14%. Prices in this segment are still 6% lower than peak levels seen in 2014, however, city centre, Northeast and Southeast districts have all seen year over year price gains. Benchmark prices sit at $294,000.
Apartment condo sales year to date are up 9%! Another positive sign for a market segment that needs some love. Months of supply is down to 6.5 putting it at a more reasonable level, however, it is still a buyer's market. The Northeast is where you can find lots of selection and a good deal as benchmark prices are down 1% since last month and the district is running over 7 months supply. There are still plenty of buyers out there (286 sales last month), they are just fishing for a good deal.
Semi-detached homes have seen an increase in value of 7% year over year to an average of $432,100. This is largely in part to the East district where there has been new found interest in the area due to the proximity to city centre. Look for this area to increase in value substantially over the next 5-10 years. We are starting to see quite a few more listings in the segment (up 18%) especially in the South and Northwest districts.
The detached segment is seeing slightly higher inventory levels which is giving consumers a bit more choice in their search. There are still some tight areas though. The East side and Northwest are still running low supply. Sales were up 8% since June last year and inventory levels are up 9% to 3224 homes. Sale price to list price ratios average 98.01% so most homes are selling very close to list price. Average days on market is 32.
Highlights from outside the city:
- Airdrie inventory, sales and new listings are nearly flat from last year, yet benchmark prices are down 1.5% year to date ($350,300).
- Cochrane sales are up 13.5% (above the 10 year average). Out of 353 units sold 330 were detached and attached properties. Prices are flat at $422,350.
- Okotoks year to date sales are up 3% to 306 homes and inventory is 21% down from this time last year. There is 3.4 months supply and prices are $430,100.
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