A good update from CREB on the Real Estate activity in Calgary
HOME SALES RISE ALONG WITH SUPPLY
City of Calgary - October 1, 2020
September inventory levels were nearly 21% lower than last year, the largest percentage decline in inventory among all property types. This shift in supply, along with improving sales, has started to help reduce the oversupply in this sector and ease the downward pressure on prices.
September prices remain nearly 2% lower than last year's levels, but prices have started to improve in the South, South East and East districts of the city.
Sales in this sector have continued to trend up for the past several months and September sales were significantly higher than last year's levels.
While it was not enough to offset the pullback that occurred during the COVID-19 shutdown, row sales activity is 4% lower than last year's levels. The growth in sales could be related to the significant price adjustment that has occurred in this sector.
Prices in this sector have eased by 7% compared to last year and remain nearly 17% below previous highs.
All other sectors have seen some recent year-over-year gains in sales, but this sector continues to trend in the other direction. Year-to-date sales declined by 16%, the largest decline among all property types.
At the same time, new listings continue to rise, which is causing further inventory gains. This is keeping the months of supply above seven months.
There have been some districts showing signs of price stabilization, but overall, year-to-date prices have eased by more than 2%, amounting to a total adjustment from 2014 highs of over 18%.
REGIONAL MARKET FACTS
For the fourth consecutive month, year-over-year sales improved. As a result, year-to-date sales for the city total 1,055 units, a 9% increase over the previous year.
While new listings did rise this month, the improvement in sales outpaced the gains in new listings, preventing any significant shift in monthly inventory levels. However, inventory levels are over 20% lower than last year's levels. And the months of supply has fallen to levels not seen since 2015. While prices remain below previous highs, tighter market conditions over the past four months have supported several months of price growth and September price levels are nearly 1% higher than last year. These price gains were enough to cause year-to-date levels to stabilize relative to last year.
A reduction in new listings limited sales growth in September compared to August. However, September sales remain higher than last year and contributed to a year-to-date gain of nearly 9%.
Rising sales and easing inventories have kept the months of supply below four months, the lowest level seen since 2014. Tighter market conditions have supported an upward trend in prices over the past three months. The recent price gains did translate to year-over-year gains in September, but were not enough to offset earlier pullbacks, as year-to-date prices remain nearly 2% lower than last year's levels.
September sales continued to improve from the low levels recorded earlier in the year and levels recorded last September.
However, recent improvements were not enough to offset earlier pullbacks. Sales remain 3% lower than last year's levels, but this could be related to reduced inventory in the market.
Reductions in supply relative to demand have caused the months of supply to decline to three months. The tighter market conditions have caused prices to trend up over the past four months. However, both September and year-to-date prices remain lower than previous year's levels.
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