Calgary Housing Sales Down 10% Year Over Year
The Calgary housing market is a dynamic environment that requires keen observation and understanding. As we dive into the latest updates for July 2024, we’ll explore pricing trends, inventory levels, and sales statistics. Whether you are a buyer or a seller, this information is crucial for making informed decisions in today’s real estate landscape.
Overview of the Calgary Market
In the current Calgary real estate market, there are several trends and changes worth noting. The Chief Financial Officer at the Calgary Real Estate Board (CREB) highlighted ongoing supply challenges, particularly for lower-priced homes. However, the increase in options available in both new and resale markets has alleviated some pressure on home prices.
Sales figures show a complex picture. While total sales reached 2,380, this represented a 10% decrease compared to the previous year. Conversely, new listings saw an 11% increase, rising from 3,604. This surge in new listings is encouraging for buyers, indicating more choices are available.
Inventory and Supply Trends
Inventory levels have also seen a significant increase, with a rise of nearly 19% to 4,158 homes. The months of supply have started to trend upwards, currently sitting at 1.75 months. This marks a 32% increase year-over-year, suggesting a shift towards a more balanced market.
Price Trends in Calgary
When examining price trends, the total residential benchmark price has risen by 7.7% year-over-year, now standing at approximately $606,000. This growth indicates a more stable pricing environment, with some categories experiencing substantial increases:
Detached homes: Up 11% to $767,000
Semi-detached homes: Up 12% to $688,000
Row townhouses: Up 14.6% to $464,000
Apartments: Up 177% to just over $346,000
Such increases reflect ongoing demand, particularly in certain districts of Calgary. The East and Northeast districts remain key drivers of this market due to their affordability, continuing to attract buyers.
Comparative Analysis: Year-over-Year Stats
When comparing the current month to the same time last year, sales figures show a drop of nearly 300 units. However, the increase in new listings by 400 units is a positive sign for buyers. The sales-to-new-listing ratio has also changed, moving from 81.5% last year to 66%, indicating that homes are taking longer to sell.
The sales-to-list-price ratio remains around 100%, meaning sellers are still achieving their asking prices despite the increase in inventory. This stability indicates that while homes may be sitting longer on the market, buyers are still willing to pay the listed price.
Community Insights and District Performance
Calgary is divided into eight districts, and the performance across these areas varies. While many sectors are experiencing positive growth, some areas are beginning to show signs of decline. For instance, the Northwest, West, and Southeast districts of detached homes are witnessing negative growth, which may offer opportunities for buyers.
In contrast, the apartment market is primarily affected by competition, particularly in the city center, where negative growth has been observed. This trend suggests that affordability and inventory levels are impacting buyer behavior.
Long-Term Market Trends
Analyzing total sales over the past 14 years, July's figures align closely with the busy market of 2021 but fall short of the peaks seen in 2022. The increase in total inventory compared to last year is promising, suggesting a potential shift towards a more balanced market environment.
When looking at benchmark prices over recent months, we can see a pattern of stability. The benchmark price has fluctuated slightly, hovering around the $606,000 mark. This flatlining indicates a seasonal trend rather than a dramatic decrease in prices.
What to Expect Moving Forward
As we look ahead to the fall market, it is likely that prices will continue to hover around the current benchmark. Seasonal trends suggest that activity may pick up in September and October, but significant price drops are not anticipated.
Interest rates have seen a slight decrease this year, but high prices and limited inventory in certain segments will continue to challenge buyers. The market's overall health remains strong, with many buyers still actively seeking homes in Calgary.
Implications for Buyers and Sellers
For buyers, the increase in inventory provides more options than in recent months. However, it is essential to remain strategic, as the market is still competitive. Understanding your budget and having a clear plan will help navigate potential multiple offer situations effectively.
For sellers, the increased competition necessitates a more careful approach to pricing. Homes must be priced realistically based on current market conditions and comparable sales. Ensuring that your property stands out through cleanliness and curb appeal is essential.
Understand your home’s value
Enhance curb appeal
Be ready to adjust your price
Conclusion
The Calgary housing market in July 2024 presents a mix of challenges and opportunities for both buyers and sellers. With increased inventory and stable pricing, both parties must adapt to the evolving landscape. Buyers can take advantage of more options, while sellers need to be mindful of pricing strategies to remain competitive.
Staying informed about market trends and data will be crucial for success in the Calgary real estate market. Whether you are looking to buy or sell, understanding these dynamics will empower you to make the best decisions for your real estate journey.
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