The summer months continue the trend of weaker demand caused by slower job growth, interest rate increases, and continued government policies looking to “cool” the Canadian housing market. While the numbers still indicate a clear buyer’s market, there are pockets of recovery and the overall market is showing signs of stabilization.
Here are the key monthly numbers to consider:
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 5.5 months of supply.
- Single Family Detached – There is 4.7 months of supply
- Attached Homes – There is 6.5 months of supply.
- Apartment Condominiums – There is 7 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 0.52 sales for every new listing
- Single Family Detached – There are 0.56 sales for every new listing
- Attached Homes – There are 0.47 sales for every new listing
- Apartments – There are 0.47 sales for every new listing
Year to Date Total Sales: Down 15.5% versus a year ago
New Listings: Up 5%
Year to Date Total Inventory: Up 27%.
The month of July continued the trend of weaker demand for Real Estate in Calgary and Surrounding area, the good news is, new listings coming to market and total inventory are starting to level off. The total absorption rates are about 25% higher than last year at this time, but the numbers are starting to level off as well. The Sales to New Listings Ratio which is an indicator of things to come is starting to recover as well.
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.
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