June Continues to Show Signs of Stability
The Calgary and Area real estate market continues to show signs of stability. The single family detached market is doing quite well in the starter and first move up market segments. The apartment sector is still showing signs of over supply with new projects continuing to come to completion.
With this in mind, let’s look at some of the important real estate numbers from June 2017:
- Absorption Rate: (0-2 months of supply is a seller’s market, 2-3.5 months of supply is balance, and 4 or over becomes a buyer’s market)
- City of Calgary – There is 3.11 months of supply.
- Single Family Detached – There is 2.33 months of supply. Some of the detached home markets are starting to see very tight supply, some specific price ranges and areas are even seeing multiple offers!
- Attached Homes – There is 3.33 months of supply, representing the high end of balanced market conditions.
- Apartments – There is 6.55 months of supply. This specific market continues to have very high inventory versus the current demand. There will be continued downward pressure in this market segment.
- Sales to New Listings: (Ratio of under 0.6 indicates more of a buyer’s market, 0.6-0.8 indicates a balanced market, and over 0.8 indicates movement towards a seller’s market)
- City of Calgary – There are 0.57 sales for every new listing
- Single Family Detached – There are 0.64 sales for every new listing
- Attached Homes – There are 0.55 sales for every new listing
- Apartments – There are 0.39 sales for every new listing
- Total Sales – are up about 5.5% versus a year ago
- New Listing – are up by 21%
- Total Inventory – is up 11%.
What does this mean?
The market is very different depending on the type of property you are looking for and the price range. We are seeing more properties starting to come onto the market, but for different reasons depending on the market segment. Single family homes are coming onto the market as sellers see prices inch up and the market stabilizes. Many apartments are coming onto the market as investors are not able to achieve the rental income they were looking for and many of the new buildings started prior to the downturn in the market are just coming to completion now. This creates 2 very different buying opportunities!
There are buying and selling OPPORTUNITIES in EVERY MARKET. You just need to know where to look. That is what we are here for. My team and I want to understand your real estate goals and put a plan together so you can achieve them!