The total sales numbers for February were down 18% from the previous year. The little ray of light was the new listings brought onto the market was also down by 2.2%.
We saw an increase in sales activity at the end of 2017 attributed to the mortgage rate change announcement that took effect January 1, 2018. I think we just saw some people move up their purchase timeline as a result of this change. With the people moving this up to 2017, there is naturally fewer sales in the beginning of 2018. This is a trend we are watching very carefully. We anticipate the sales numbers to stabilize and the total sales for 2018 will be similar to 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 4.76 months of supply.
- Single Family Detached – There is 3.74 months of supply
- Attached Homes – There is 5.5 months of supply.
- Apartment Condominiums – There is about 7.24 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 0.45 sales for every new listing
- Single Family Detached – There are 0.51 sales for every new listing
- Attached Homes – There are 0.42 sales for every new listing
- Apartments – There are 0.36 sales for every new listing
Total Sales: Down 18% versus a year ago
New Listings: Down 2.2%
Total Inventory: Up 15.5%.
We will be watching the sales trend very closely as we hope and expect the sales numbers to normalize for the time of year over the next 60 days.
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.