The first quarter of 2018 saw a persistent slower pace of sales versus 2017. Much of this is attributed to the mortgage rule changes that came into effect January 1, 2018. This rule change caused many buyers to speed up their purchases at the end of 2017. The 4th quarter of 2017 was stronger than expected as a result.
The economic conditions in Alberta are improving…. slowly. But, the government-imposed changes to lending, combined with increased interest rates are offsetting any of these positive gains.
Overall, sales in the 1st quarter of this year are down 18% from last year and we are 24% below the long-term averages for total number of sales.
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 4.64 months of supply.
- Single Family Detached – There is 3.61 months of supply
- Attached Homes – There is 5.27 months of supply.
- Apartment Condominiums – There is about 7.72 months of supply.
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 sales for every new listing
- Single Family Detached – There are 0.45 sales for every new listing
- Attached Homes – There are 0.36 sales for every new listing
- Apartments – There are 0.30 sales for every new listing
Total Sales: Down 27% versus a year ago
New Listings: Down 6.4%
Total Inventory: Up 24.34%.
Now we are through the 1st quarter of 2018 we expect the sales numbers to start to normalize. This, combined with some spring weather (we hope!) should result in some increased sales activity over the next 30-60 days.
If you are thinking of making a move, timing is very important right now. Let my team and I guide you through this changing market. We look forward to helping you achieve your real estate goals.
We are just a call or email away!