The trend still shows a sharp decline in new listings coming to market with continued stabilization of sales. This combination of decreased inventory and stable demand has reduced the absorption rate by about a full month! This is a strong indication we are moving towards more balanced market conditions. You will see the trends very clearly in the detailed numbers below.
Absorption Rate: (0 to 2 months of supply is a seller’s market, 2 to 3.5 months of supply is balanced, and 4 or over becomes a buyer’s market)
- City of Calgary: 2019 – 4.4 versus 2018 – 5.5 months of supply
- Single Family Detached: 2019 – 3.8 versus 2018 – 4.7 months of supply
- Attached Homes: 2019 – 4.9 versus 2018 – 6.5 months of supply
- Apartment Condos: 2019 – 5.7 versus 2018 – 7 months of supply
Sales to New Listings: (Ratio of under 0.6 indicates more of a buyer’s market, 0.6 to 0.8 indicates a balanced market, and over 0.8 indicates movement towards a seller’s market)
- City of Calgary: 2019 – 0.61 versus 2018 – 0.52 sales for every new listing
- Single Family Detached: 2019 – 0.62 versus 2018 – 0.56 sales for every new listing
- Attached Homes: 2019 – 0.57 versus 2018 – 0.47 sales for every new listing
- Apartments: 2019 – 0.59 versus 2018 – 0.47 sales for every new listing
July Total Sales: Up 6.4% versus 2018
Year to Date Total Sales: Down 1%
July New Listings: Down 8% versus 2018
July Total Inventory: Down 15%
July Benchmark Pricing: Down 3.5% depending on the product category
Sales are up a little from last July with the inventory numbers down substantially. This balancing of the market is good news and if the trend continues, could signal a coming shift in the market. We are seeing more showing activity in certain segments of the market and more optimism in the market for the first time in 5 years.
Looking for deals, now may be the last opportunity before some recovery starts! Buyers are realizing the combination of low mortgage rates and some great buying opportunities means NOW IS THE TIME TO BUY!
All the money is made in your purchase! We are telling all our clients this right now. There are AMAZING deals in this market. If you want to find the best deals and negotiate a great purchase contract, call us! We can help you achieve your real estate goals. DON’T TRY AND BUY WITHOUT GETTING THE BEST ADVISE AND DON’T BUY WITHOUT YOUR OWN INDEPENDENT REPRESENTATION LOOKING OUT FOR YOUR BEST INTERESTS!
If you are thinking of buying, selling, or investing in Calgary and the Surrounding Area we are here to help you achieve your real estate Goals!