Calgary Real Estate Market Update April 2019

Slight change of pace after the election:

The City of Calgary Real Estate market is starting to show positive signs compared to this time last year.  Inventory levels are down from this time last year coupled with a slight uptick in sales leading to a long road of recovery.

As per the Calgary Real Estate Board’s most recent report for April:

“There have been no significant changes occurring in sales activity, but the number of new listings coming onto the market continues to ease relative to 2018 levels. 

The decline in new listings was enough to start chipping away at overall inventory levels, which have eased slightly compared to last year.

The slight adjustment in supply levels has helped support further reductions in the months of supply, which was 4.6 months in April. While this level still represents oversupply in our market, it does reflect an improvement from the nearly seven months of supply that we saw at the start of the year.

“Demand remains relatively weak in the resale market. However, if supply levels continue to adjust, this could help reduce the amount of oversupply and eventually support some price stability,” said CREB® chief economist Ann-Marie Lurie.

As of April, the total residential benchmark price in Calgary was $415,900.; this is slightly higher than last month, but still nearly five percent lower than last year’s levels.

Citywide sales were 1,547 units in April, two percent higher than last year’s levels. Year-to-date sales remain nearly six percent lower than last year and are 26 percent below longer-term averages.

“Sales have been improving mostly in the lower price ranges, causing tighter supply conditions in that segment.  This will likely have a different impact on price trends in the lower price ranges depending on location,” said Lurie.

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Calgary Real Estate Market:

Detached Homes in Calgary

• Detached sales improved by nearly three percent in April compared to last year, due to gains in homes priced under $500,000. However, with 930 sales, activity still remains 24 percent below long-term averages.  Recent gains were also not high enough to offset pullbacks earlier in the year, causing year-to-date sales to fall by over five percent.
• Improving sales did not occur across all districts. In April, there was growth in the North East, North West, South and South East districts of the city. Despite some signs of sales improvement, overall sales activity remains well below 10-year averages throughout every region in the city.
• April detached inventories citywide continue to remain just above levels recorded last year. Months of supply remain relatively unchanged at four months.
• The amount of oversupply has varied significantly depending on the area of the city. Months of supply has only risen in the City Centre, South and West districts of the city.
• Despite some of the adjustments occurring in the detached sector, overall April prices remain lower than last year’s levels across all districts. Year to date, the most significant year-over-year declines occurred in the City Centre, North West and South districts.

Apartments for sale in Calgary

• Despite the affordability of apartment condominiums, sales activity continues to fall across the city and in most districts. There have been 714 apartment condominium sales so far this year, the lowest level since 2001.
• The decline in new listings has started to outweigh the sales decline, causing inventories to ease. As of April, resale apartment condominium inventories totalled 1,546 units, 16 percent lower than inventory levels last April.
• The easing inventories have also caused the months of supply to decline to just above six months. While this is still a buyers’ market, this trend could help ease the downward pressure on prices if it continues.
• Apartment condominium prices in April totalled $250,400, comparable to last month, but over two percent below last year’s levels and nearly 17 percent below 2014 highs.

Attached Homes for Sale in Calgary

• Attached sales activity improved compared to last year’s levels for the second straight month, almost offsetting the declines occurring in the first two months of the year.  Year-to-date sales were 1,113 units, nearly one percent below last year’s levels, and 14 percent below long-term averages.
• Year-to-date sales have improved in all districts except the City Centre, North West and West.
• Improved sales and easing listings have helped prevent further inventory gains in this sector and overall months of supply have trended down to five months.
• Following several months of prices trending down, semi-detached benchmark prices in April rose over the previous month. However, prices remain over five percent below last year’s levels at $395,300.
• Row prices were $284,900 in April, over five percent below last year’s levels.”

If you have been waiting for any positive signs to jump into the market, this may be it. A change in provincial policy and an upcoming federal election set for October the road to recovery could be well on its way. There are some great deals to be had contact your Calgary Realtor Jesse Davies and get your home search started today.