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Media release: Oversupply is slowing, but a buyers’ market remains



City of Calgary, July 2, 2019 New listings coming onto the market continued to decline in June, which is helping to reduce the oversupply of homes in Calgary.

Year-over-year, new listings saw a decrease of nearly 19 percent. Sales activity slowed this month compared to last year by six percent, but the pullback in new listings was enough to cause inventories to fall by 13 percent compared to last year’s elevated levels.

“So far, the housing market has generally behaved as expected this year. Sales activity remains just below last year’s levels, prices have eased and supply is starting to adjust to the lower level of sales,” said CREB® chief economist Ann-Marie Lurie.

“However, it is mostly product priced under $500,000 that is trending towards more balanced conditions.”

While the market still favours the buyer – with 4.3 months of supply – the amount of oversupply has eased and is slowing the decline in prices. As of June, the benchmark price in the city was $425,700, nearly four percent below last year’s levels and comparable to unadjusted prices recorded last month.

HOUSING MARKET FACTS

Detached
Detached sales in June declined by nine percent compared to last year, causing year-to-date sales to ease by nearly three percent. The decline in sales was mostly driven by homes priced above $500,000.
Detached homes priced under $500,000 have recorded improvements in sales and oversupply reductions. The tightening in the lower end of the market will likely start to support price growth in this sector of the market.
Despite citywide year-to-date sales declines, activity improved in both the South and North West districts of the city. Sales did ease across other districts, but in some of the most affordable districts (North East and East) supply-to-demand ratios are improving compared to last year. This is pushing those markets toward more balanced conditions.
Despite slower sales activity, the amount of inventory declined by nearly 18 percent. The reduction in inventories occurred throughout all districts.
Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices nearly four percent below last year’s levels.

Apartment
Apartment condominium sales eased in June, causing year-to-date sales to total 1,292 units. This is over seven percent below last year’s levels. Over the same time frame, new listings eased by over 15 percent, helping reduce some of the resale inventory in the market.
Resale inventory levels have declined, but the months of supply continue to remain elevated at 6.8 months. Combined with elevated inventories in the competing rental and new-home markets, this continues to weigh on resale pricing.
June’s benchmark price was $250,200, three percent below last year’s levels. This is resulting in a total price adjustment of over 17 percent since 2014.

Attached
Unlike other property types, sales activity for attached product continued to improve in June. Year-to-date sales total 1,955 units, nearly three percent above last year’s levels. Improvements were driven mostly by growth in demand for semi-detached product. Attached sales improved across all districts except the North West and West.
New listings have eased compared to last year, which is starting to reduce oversupply in the market. Like all other sectors, the attached market remains oversupplied and this is impacting prices.
June’s benchmark prices were $399,700 for semi-detached and $286,300 for row product. Respectively, this represents year-over-year declines of 3.3 and 5.4 percent.


REGIONAL MARKET FACTS

Airdrie
After the first half of the year, sales activity remained relatively stable. New listings have declined, which is helping to reduce the amount of inventory on the market and move towards more balanced conditions.
The market may be trending towards more balanced conditions, but oversupply continues to weigh on prices. The benchmark price was $334,800 in June, comparable to last month, but nearly three percent below last year’s levels.

Cochrane
Sales activity in the area remained relatively stable compared to last year and consistent with longer-term trends. New listings have eased, helping to reduce inventory in the market and the amount of oversupply.
Despite some recent adjustments, the market continues to favour the buyer, placing downward pressure on prices. The benchmark price was $404,000 in June, similar to last month and over five percent below last year’s levels.

Okotoks
Sales have remained stable compared to last year, but they are still below longer-term averages. However, new listings are starting to adjust, which is continuing to push down inventory levels and cause the market to move towards more balanced conditions.
As the market moves towards more balanced conditions, this should help create more stability in pricing. As of June, benchmark prices were $414,900, 1.6 percent higher than last month, but still 4.1 percent below last year’s levels.
 
 
 
 
 
Ryan McBride
RE/MAX House of Real Estate 
Cell - 403-919-1399
Email - ryanmcbride@shaw.ca
 
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With the summer season firmly upon us, people are now looking to get away from their busy lives and get away to relax with friends and family for a much-earned vacation.   While for some, this means booking a trip to an exotic destination where they leave the comforts of home to be pampered like a king in some sort of resort or hotel setting.   For others, this is the time of year where they can pack up with the family and head out to their “home away from home”.

 

Recreational properties are becoming a more attractive option for people because they don’t have to hop on a plane and leave for an extended period but rather just hop in the car and head out for a few days of peace and relaxation.  There are many types of recreational properties out there that could fit the bill.   First and foremost, when thinking of a recreational property, most people would think of a cabin by a lake.   This is a very popular option in and around Calgary because of its proximity to many lakes in and around the city.   These types of properties offer families an ideal place to kick back and unwind while still being able to live in a similar way to which they have become accustomed to in the city.

 

Families can get out for a weekend and enjoy the weather and participate in a variety of activities such as water skiing or boating during the day and then come back to a cozy cabin in the evening to enjoy their family time around a fire.  One drawback of these properties can be affordability.   Some simply don’t have the resources to own and maintain a cabin property along with their main home and other responsibilities.

 

With that said, RV lots are becoming a very popular and more affordable option for people looking to vacation while still owning a place where they can get away.   These properties are popular not only because of the affordability but because they build upon the popular “Campers Communities”.  These communities are a very attractive mix between cabin life and camping because they offer the users the ability to enjoy traditional camping activates such as campfires and fishing while the RV gives most of the comforts of home that people enjoy.

 

Regardless of the type of property that one would choose, there are many options that can fit the needs and wants of anyone looking to acquire a second home.   We are very experienced in helping families find a new property and have a variety of tools available to us to help them find the place of their dreams.   If you are looking into getting a second property for recreation, please don’t hesitate to contact us.   We are top recreational property Realtors who have great partners in all provinces and towns across the country.

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On September 30, 1981, Calgary was awarded the 1988 Winter Olympic Games.   This announcement transformed Calgary from a small oil and gas city in the province of Alberta that was best known for the Calgary Stampede, into an international destination that would soon become known throughout the world.

 

Beginning almost immediately, Calgary started construction on many of the venues that would be needed to be built to accommodate 1423 athletes from around the world that would be coming to our city to participate in 46 events.   Among the biggest venues that would need to be completed were the iconic Saddledome as well as the Olympic Oval, which would be completed on the campus of the University of Calgary.   This construction boom helped Calgary become known as an international destination for everything from tourism to trade to new residents coming to our city for new opportunities.

 

In the years after the hugely successful Olympic Games, many large corporations such as CP Rail moved their head offices to Calgary because it was an ideal city to work and live.   As such, the population of Calgary grew extensively.   With this new growth in population, many new accommodations were needed for the many new citizens flocking to the city.   New communities were built, extending the city lines.   Record numbers of new apartment style condominiums were also started with many helping to change the look of the Calgary skyline into what we enjoy today.

 

Now that there is talk of bringing the 2026 Winter Olympics to Calgary, there is much anticipation as to whether Calgary can recreate the 1988 “Magic” not just for a successful Olympics, but also for the economic benefits that were experienced after the 88 games.

 

There is hope among many citizens that any new venue or housing project would again continue to be used after the games end and help the city of Calgary user in a new era of prosperity in business, housing, and population growth.

While it might be too early to anticipate what will happen with this new Olympic bid, the hope among many of our peers is that this will again transform the landscape of Calgary for generations to come.

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Located a short 10-minute drive from downtown Calgary, is the community of Marda Loop.   This reinvigorated and trendy neighborhood is a popular destination point for people from all across the city.   Marda Loop is home to approximately 130 restaurants and shops as well as hosting a multitude of other businesses and is located right off of Crowchild Trail in SW Calgary.

 

 

The history of this now inner-city community dates back to 1909 when Marda Loop was once a trolley car loop that carried people to downtown Calgary as well as to outlying areas.   In 1953 the Marda Theater was built and quickly became a major attraction and landmark.   The theatre was popular with the community and served the residents as well as the nearby Canadian Forces Base, until it closed in 1988 and was eventually demolished in 1990.

 

In the early 1990’s, the Canadian Forces Base closed and the population in the area was dramatically affected by the exit of military personnel and their families from the area.   Soon after this, a well thought-out revitalization and redevelopment plan for the surrounding areas was started and it created Garrison Woods and Currie Barracks.   This helped create a resurgence and revitalization of Marda Loop.    With a newfound popularity, newer higher income residents started to notice, and a construction boom started replacing older detached homes with newer high density infills and multi-family condominiums.  This led to an increase in the neighborhood population.

 

New families and residents are moving into Marda Loop at record rates and the neighborhood continues to attract attention with a variety of community-based events like the yearly Stampede Breakfasts that can be found along 33rd Ave or the Marda Loop Mardi Gras which is going into its 33rd year.   This event attracts over 35,000 people from all over Calgary and features live music, unique shopping and lots of great food.

 

Marda Loop is a must-see when looking to get out and about in Calgary!

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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
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