Happy Canada Day! And welcome to the Summer :) Below you'll find a summary of the Calgary Real Estate Market stats for June 2016. As well, an update from the report I put together at the end of March looking at how the different price ranges for single family homes (no condo fees) are performing.
Calgary sales for all property types totaled 2028 transactions in June. This sales volume is down 7.06% from the numbers posted last June however the average price remains strong at $485,504, this is a fraction higher than this time last year. Listing inventory has declined again from the previous month, we have dropped below the 6000 mark wtih 5973 active listings. The average days on market sits at 45.
Month over month sales posted a decline for yet another month. However, the declines are trending towards matching the sales from the same time last year. A stronger Canadian dollar and support in energy prices have resulted in higher consumer confidence and I believe by the time we get to the Fall months we will see increases in sales numbers month over month.
Back in March I took an in depth look at the Single Family (no condo fees) segment of the market in Calgary. I found that, even though the overall market suggested buyers market conditons, parts of the single family market were displaying balanced and even sellers market conditions. I have updated that report and have found that the Single Family market is still leading the way and is performing even stronger now than it was at the beginning of April.
Keep in mind that a balance market is one in which there is 2.5-3.5 months worth of inventory. Less than 2.5 months of inventory represents a sellers market, conversely, over 3.5 months of supply is a buyers market.
Market Conditions: BUYERS BALANCED SELLERS
SINGLE FAMILY ABSORPTION RATES (MARCH VS JUNE)
|Price||March Months of Inventory||June Months of Inventory|
|$300k and Under||1.89||1.44|
Back in March the most affordable single family homes (under $500k) were performing the best, exhibiting sellers market conditions. The homes $500k-$600k were in balance. The more expensive homes over $600k were struggling, displaying buyers market conditions with depressed sales and an excess of inventory.
In the past 3 months we have seen the single family market get even stronger including a massive imrovement in the homes priced between $600k-$900k.
Homes up to $500,000 are shifting further in to sellers market conditions and even the homes between $500k-$600k are in sellers market territory.
Unlike 3 months ago, where homes between $600k and $900k had as much as 7.4 months of inventory indicating extreme buyers market conditoins, we are now seeing balanced market conditions in this price range.
The homes above $900k and especially over $1million are still experiencing buyers market conditions.
I am happy to see the single family market showing increasing strength. This strength can be attributed to on-going low interest rates and higher consumer confidence boosted by the increase in the Canadian dollar and support in energy prices. I am looking forward to this trend continuing in the coming months.
Have a great Summer!
Kyle Goudie-Century 21 Bamber Realty Ltd.