December Market Update for Calgary Real Estate

December sales totalled 794 units, a 21 percent decline over December 2017. Overall year-to-date sales in the city totalled 16,144 units. This is a 14 percent decline over 2017 and nearly 20 percent below long-term averages. This can be attributed to a persistent weakness in the job market and changes to the stress test and increases in mortgage rates.

As oversupply continues in Calgary’s housing market, December prices eased by one percent compared to last month and are over three percent below last December. 

Inventory levels in December sat at 4,904 units. This is well above levels recorded last year and 30 percent above typical levels for the month. Elevated resale inventories in 2018 were caused by gains in the detached and attached sectors.

Throughout 2018, the months of supply remained elevated and averaged 5.2 months of supply which puts us in a buyer’s market. This contributed to the annual average benchmark price decline of 1.5 percent. Price declines occurred across all product types and have caused citywide figures to remain over nine percent below the monthly highs recorded in 2014.

“Both buyers and sellers faced adjustments in expectations this year. Sellers had to compete with more choice in the resale market, but also the new-home market,” said CREB® president Tom Westcott.

“With fewer people looking for a home, it became a choice between delaying when to sell or adjusting the sale price. However, buyers looking for more affordable product did not find the same price adjustments that existed in some of the higher price ranges.”

For the full report visit www.creb.com or click here to contact us directly for a free Calgary home evaluation or to speak to Jesse Davies about getting your home search started today.

 Detached Homes FOR SALE in Calgary

• Detached sales declined across all districts in 2018. With citywide sales of 9,945 units, activity remains 21 percent below typical levels for the year.
• Detached inventories were higher than last year’s levels for each month of the year, including December. Slow sales caused the market to be oversupplied through most of 2018.
• Detached benchmark prices totalled $481,400 in December, a one percent decline over last month and a three percent decline over last year. Overall, 2018 prices declined by 1.5 percent compared to last year.
• Prices have eased across most districts in 2018. The largest declines this year have occurred in the North East, North West and North districts.

Condos For Sale in Calgary

• Apartment sales totalled 2,663 units in 2018. While the decline is less than other product types, levels are 22 percent below long-term averages.
• The apartment condominium sector has struggled with oversupply for almost three years and 2018 was no exception.
• However, supply has been easing, as inventories this year averaged 1,584 units, one percent below last year’s levels.
• Despite slowing supply growth, the market remained oversupplied, causing further price declines. In December, benchmark prices were $251,500, over two percent below last year. Annually, prices have declined by nearly three percent for a total decline of 14 percent since 2014.
• Price declines this year have ranged from a high of nearly six percent in the East district to a low of two percent in both the City Centre and North West districts.

 Attached

• Declines for both row and semi-detached product resulted in 2018 attached sales of 3,536 units, a 15 percent decline over the previous year and 14 percent below long-term averages.
• Slower sales activity prompted some pull-back in new listings, but this was limited to the row sector. Row new listings declined by four percent and semi-detached new listings rose by nearly 15 percent in 2018.
• Despite some adjustments to new listings, inventory levels remained elevated, keeping the market in buyers’ market territory and putting downward pressure on prices.
• In December, the semi-detached benchmark price totalled $397,500. This is a monthly and year-over-year decline of 0.8 and 3.8 percent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as 2018 prices remain just below 2017 levels. Overall, annual prices remain 1.4 percent below 2014 peak levels.
• Row prices have also been edging down. As of December, row prices were $288,400, a 1.5 percent decline from last month and nearly four percent below last year’s levels. Overall, 2018 prices remain two percent below last year’s levels and nearly 10 percent below previous highs.

If you’re looking to buy or sell a Calgary home in 2019 make the right choice. With Jesse Davies and Associates, an award-winning Re/Max Team on your side, you’ll be worry and hassle-free. Contact us today and see how we can make your next Real Estate transaction a success!
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