As of the beginning of December 2018, Calgary home sales are 14 % below sales volume for the same period in 2017, and 20% below long-term averages. New listings declined 7%. Overall higher inventory weaker sales have been the trend. Citywide benchmark price is $422,600, 1% lower than the previous month. The most significant decline in sales is in the $600,000 to $999,999 price range. Sales are slower across all price ranges except properties listed for less than $200,000
Calgary Single Family Homes
For November 2018 only a total of 874 listings of detached single-family homes sold in the City of Calgary. Sales to new listings 77.9%. Total inventory was 2765 detached houses, of them 1122 where new listings. This represents just over three months of supply, and that is what we consider a balanced market in Calgary. Current days on the market for single-family homes is 48 days. Many houses that are priced well will sell quickly while others will have to consider a price reduction.
Calgary Semi-Detached Homes
In November of 2017, only 108 semi-detached homes sold by Realtors in the City of Calgary. The average price is down a whopping 14.36% for the year to date — over 88% of semi-detached homes were condominiums. The average days is also soared from 55 days in 2017 to 63 days in 2018. Months of supply also increased to almost seven months, well into a buyers market.
Calgary Row Housing
Calgary row housing had 144 sales for November 2018 and was down almost 23% of the volume from November the previous year. Year to date sales of row housing are off by 16.97%. Months of supply is sitting in a buyer’s market at 6.56 months. The Median price has dropped 3.76% from the previous year. Typically sellers are getting almost 97% of asking price.
Apartment sales for the month of November totalled 240, this represents an increase of 7.14% over last year. The months of inventory is at 5.49, a buyer’s market still, but gradually improving. New listings decreased 22.87% from last year. If this trend continues the apartment sector will potentially be moving into a balanced market in a matter of time. Average days on the market was at 65 days, holding steady to 66 days for November of last year.
Selling your home in the current real estate market
There are three factors to consider in today’s real estate in Calgary as a seller, your price, presentation, and the realtor. With the price it is simple, buyers are looking for value, so if the price, quality, and location are not competitive, the buyer will go elsewhere. We can rarely sell an overpriced home. There are features that you love about your home, and upgrades, but others may not see the value. The presentation of your home is very important, from smells to the placement of furniture. Some cooking, tobacco, and pet smells can reduce the number of buyers that would be interested. Unless they are custom to a particular smell, the buyer will likely find it offensive. Placement of furniture helps buyers visualize a good flowing layout. Buyer’s also do not want to start fixing things so leaving repairs for a potential buyer is a fail. The final requirement for a successful sale is the proper realtor. Not all real estate agents have a comprehensive marketing plan, good at reading market insights, and trends for best results use a hands-on experienced, full time, active realtor. Many sellers make the mistake of hiring a realtor who simply lists the property, and that is it.
Why buy now?
There are many advantages to buying a property now. One concern most buyers have is if they wait they may get a better deal in a declining market. Similar to the the stock market, it is impossible to predict when the market bottoms out, but there are other things to consider. Rising interest rates, changes in government, changes in the economic outlook of the city or region, and seller’s not willing to attempt to sell their homes in a lower priced market. Rising interest rates would potentially make it more difficult for buyers to qualify to buy the house they would enjoy with a reasonable monthly payment. A change in government could potentially motivate people satisfied with the outcome to move more quickly, now that they feel more positive about their future. As Calgary’s economy slowly improves and moves to resolve issues with the oil glut in Alberta, jobs and migration will take place putting new demands on housing. We have already seen this start to take place in the rental market. Another factor is the willingness of seller’s to list their home in a lower priced market. If a seller does not have a strong motivation to sell they may choose not to list there home. Collectively in the market supply will slowly diminish until the day comes again the seller can get a price of their liking. Now is the best time to act and buy while prices are at their lowest in many parts of the Calgary real estate market in over a decade, and you can take the time to choose a property right for you. After all, you have to live somewhere!
The source of statistics for this information was the Calgary Real Estate Board’s monthly publication. Feel free to contact Stephen McDonald for a copy.