After experiencing strong gains in the first half of the year, activity in Calgary has eased in September with a rise in inventory and a drop in sales.
Last month, inventory for all property types (including detached, attached and condos) surged to 6,861 units, up 16.6 per cent from 5,881 units recorded a year ago, according to the Calgary Real Estate Board’s (CREB) latest data, published on Monday.
“The recent rise in inventories is preventing further price recovery as sales activity has moderated over recent months,” says Ann-Marie Lurie, CREB chief economist, in a statement.
“This does not come as a surprise as sales activity is expected to remain modest by historical standards until more substantial economic improvements take hold,” she adds.
A total of 1,462 properties sold in Calgary last month — a 1.15 per cent decrease from the 1,479 homes sold in September 2016.
Although activity last month seems like a pullback, Lurie says the recent trends are balancing out the higher than expected gains seen in the first half of 2017.
Here are 11 more key stats from CREB’s latest market data release explaining how Calgary’s housing market balanced out in September:
1. Thanks to strong activity in the first half of 2017, Calgary’s year-to-date sales was seven per cent above last year’s levels but still remained below the long-term average by 11 per cent.
2. New listings totaled 3,266 units, up 9.74 per cent from 2,976 new listings posted a year ago. CREB president David P. Brown says a reason for the increase may be due to more stability in the market, which has prompted sellers who were on the sidelines to list their homes.
3. Both apartment and attached-style properties saw the highest inventory on record for the month of September.
4. The North and Southeast areas of the city have reached record-high inventory levels. CREB attributes this gain to new construction activity in these districts.
5. The benchmark price of a home in Calgary was $441,500, down 0.2 per cent from August 2017 but roughly one per cent above last year’s price.
6. In the condo sector, the benchmark price was $263,700, roughly three per cent below 2016 levels and 12 per cent under peaks reached in 2014. According to CREB, this sector of the market continues to struggle with an abundance of supply causing prices to continue dropping.
7. City-wide months of supply was 4.69 months — a surge of 18 per cent compared to a year ago.
8. Months of supply in the condo sector sits at 8.42 months, up roughly two per cent from a year ago.
9. Out of all property types covered, detached homes saw the lowest months of supply at 3.79 months, though this was still up 26 per cent from a year ago.
10. The benchmark price of a detached home was $508,900, a one per cent jump from September 2016.
11. In the attached sector, the benchmark price of a home was $336,000 — a 1.54 per cent increase from September 2016.