Calgary Real Estate Market Update April 2019 – Absorption Rate is 5+ months despite improved sales activity for Under $500,000 Product
Tuesday, April 9th, 2019
Calgary – Sales were down 9% compared to the same 1st quarter last year, and 28% below trending levels.
At the same time, this price decline and relatively slow sales activity are impacting peoples interest in putting their properties on the market for sale. New listings were down to 6,595 in March … the absorption rate being 5 months. This is an improvement over the past several months, but still considered oversupplied when compared to levels traditionally recorded in March.
Of course, the oversupply in Calgary has caused further price declines. As of March, benchmark prices eased to $413,900, five per cent below last year.
HOUSING MARKET FACTS
Detached
First-quarter sales declined by nearly nine per cent compared to last year and 30 per cent below typical levels of activity.
Detached sales have varied depending on location and price range, with gains occurring mostly in the most affordable price ranges of each district.
In March, citywide detached sales improved for all homes priced under $500,000.
Despite easing in new listings, inventories increased over last year’s levels, pushing months of supply to the highest level ever recorded for the month of March. When considering activity by districts, the North East and East districts have seen the level of oversupply ease compared to last year.
Oversupply in the detached sector continues to weigh on prices across all districts in the city. Citywide detached benchmark prices eased 5.4 per cent compared to last year for a total price of $475,800.
Apartment
Resale condominium sales fell by 14 per cent in March, causing first-quarter sales to total 464 units, 17 per cent below last year. The decline did not occur in all districts, as sales activity improved in both the North and West districts of the city. Despite some signs of improvements in those districts, activity remains well below long-term trends.
Supply in this sector is showing signs of adjusting to the lower levels of demand. New listings eased again this month compared to last year’s levels. Unlike other property types, this adjustment is impacting inventories. Inventory in March was 1,488 units, 12 per cent below last year’s levels.
The months of supply has edged down from levels recorded earlier in the year, but due to weak sales, it is elevated compared to last year’s levels.
Citywide, apartment condominium prices fell by 0.7 per cent from last month and 2.6 per cent over last year. However, in both the North East and South East districts, prices posted a modest gain over last year.
Attached
There was a slight uptick in attached sales in March due to improvements in both the semi-detached and row sectors. Despite the gains in March, year-to-date sales remain four per cent below last year’s levels and 16 per cent below long-term averages.
Year-to-date sales have eased, but there have been improvements in the South and South East districts.
Despite some improvements in sales, citywide months of supply remain elevated.
Prices continued to trend down for semi-detached product. March’s benchmark price was $391,000, nearly six per cent below last year’s levels and 0.4 per cent below last month’s price. However, the North district saw different results, as tightening months of supply supported a modest gain in prices compared to both last month and last year.
Row prices in March remained relatively flat compared to February levels, but remain more than four per cent below last year’s levels and over 13 per cent lower than previous highs.
REGIONAL MARKET FACTS
Airdrie
Absorption rate is 5 months and prices remain 4.6 per cent below levels recorded in the first quarter of last year with the largest declines occurring in the apartment sector.
Cochrane
Cochrane’s absorption rate is 8 months and prices have eased 1.6 % from last year.
Okotoks
Sales and new listings slowed compared to last year. Current Absorbtion rate is 7.7 months in the first quarter.
