“Big John’s” Thoughts on the Calgary Real Estate Market January 2018
Looking back on 2017, it truly was the year of stabilization. All the key indicators stabilized through the year, we have broken down the number for 2017 below. In addition, it is interesting to note the benchmark price changed by -0.17%, the median price by 1.18%, and the average price by 0.93%. All indicating the pricing was basically “flat” for the year. This represents a big improvement over the declines we saw in 2015 and 2016.
With this in mind, let’s look at some of the important real estate numbers from December 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 3.64 months of supply.
- Single Family Detached – There is 2.79 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 3.96 months of supply.
- Apartment Condominiums – There is about 6.7 months of supply. This remains the most challenging market for sellers and the best market for buyers.
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 0.55 sales for every new listing
- Single Family Detached – There are 0.62 sales for every new listing
- Attached Homes – There are 0.53 sales for every new listing
- Apartments – There are 0.40 sales for every new listing
Total Sales: Up 6.1% versus a year ago
New Listings: Up by 5.77%
Total Inventory: Up 3.17%.
Looking ahead to 2018, it is projected we will continue to build on the stability of 2017. As this is being written it looks like, interest rates are going to increase because of a stronger economy, the mortgage rule changes haven’t had a real negative impact on the market, and the price of oil is at it’s highest level in 3 years. Finally, some positive news going into a new year!
If you are thinking of buying, selling, or investing – we are here to help! Please, contact us to discuss your real estate goals so we can set you up for success in today’s market.