The projections have come out for 2018 and it looks like we will have more of what 2017 offered us in the Calgary and Area real estate market.
Projections are for prices to remain stable, the only exception is in the apartment condominium market where there could still be further downward pressure on prices due to high supply numbers. In addition to stable pricing, total sales numbers and inventory numbers are all looking to be stable through 2018.
With this in mind, let’s look at some of the important real estate numbers from January 2017 as compared to January 2018: (2017/2018)
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 4.4/4.8 months of supply.
- Single Family Detached – There is 3.2/3.7 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 4.7/5.0 months of supply.
- Apartment Condominiums – There is about 8.4/8.9 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 0.4/0.39 sales for every new listing
- Single Family Detached – There are 0 .47/0.45 sales for every new listing
- Attached Homes – There are 0.4/.4 sales for every new listing
- Apartments – There are 0.24/0.24 sales for every new listing
Total Sales: Up 1.6% versus a year ago
New Listings: Up by 3.15%
Total Inventory: Up 12.5%.
Overall sales were down a little in January, this may be attributed to the mortgage rule changes. We saw a little spike in sales during November and December because of the announcement. Many people may have just shifted their timeline a little quicker because of the announced changes. We are likely to see this stabilize as well.
Stability isn’t a bad thing. It gives both buyers and sellers time to do their research, put a plan into place and make the best decisions possible.
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.
“Big John’s” Thoughts on the Calgary Real Estate Market (February 2018)