Calgary Real Estate Market Update November 2018
– Tough economic conditions affecting resale market –
Year-to-date, there was 15,349 total units sold, a 14 percent drop comparatively year-over-year and 20 percent below the decade long average. This continues the downward market trend seen in October 2018.
Challenges in the energy industry have taken their toll on consumer confidence this November. Combined with high unemployment rates and further increases in lending interest rates by the federal government, this has created a downward trend of ownership demand.
New listings dropped seven percent in November 2018 compared to the year before. While new listings helped prevent more gains in inventory, the number of units on the market – at 6,501 – remain well above those seen the previous year – at 5,683. This is 32 percent higher than the typical amount of listings seen on the market during the month of November.
Weak sales and high inventories have resulted in benchmark price declines and a continued buyers’ market for Calgary’s residential sector.
November 2018 Real Estate Market Facts & Statistics
- $422,600 city-wide benchmark price, 1 percent lower month-to-month and 3 percent lower year-over-year
- Sales have dropped in all price ranges, save those below $200,000, which has grown to represent almost 6 percent of all units sold
- Largest sales activity drop in the $600,000 to $1 million range
- 16 percent drop year-over-year and 14 percent drop versus long-term averages with 3,344 total attached units sold
- $400,700 semi-detached benchmark price, 0.67 percent drop month-to-month and 3.3 percent drop year-over-year
- $292,900 townhome row benchmark price, 0.2 percent lower month-to-month 3 percent lower on a year-over-year basis
- Attached sales eased for most districts except the North East, where sales have remained relatively stable with slight improvements in townhome activity
- Increasing number of new listings put downward pressure on prices
- 679 city-wide detached homes sold in November, a 21 percent decrease in usual levels for the month
- New listings dropped by 3 percent on a year-over-year basis as a result of declines in the South East, North East and North districts
- $486,000 detached benchmark price, 1 percent lower month-to-month and 3 percent lower year-over-year
- 3,491 total detached inventories, 26 percent higher year-over-year
- Months of supply sitting at 5 months, well above the typical levels for November
- Detached prices have eased across all districts in November, with largest price declines in North and North East districts as a result of increased competition from new homes
- 2,557 total units sold, 5 percent lower year-over-year and 21 percent lower versus the long-term average
- City-centre condominiums represent 48 percent of the total sales in the city
- New listings for condo resale market continue to drop, helping prevent further inventory gains and even resulting in inventory drops in the North East, East and South districts
- Most districts continue to struggle with high inventories and low demand, resulting in price drops between a low of 2 percent in the City Centre and North West districts a high of 6 percent in the East district
Affordable products such as low-priced condos and townhomes are all the hype in today’s market. Meanwhile, dropping benchmark prices have allowed some buyers to purchase a home which would have otherwise been unattainable a few years back.
This also means that home sellers need to be aware of what’s selling in their community and for what price. This will help them to successfully sell their home in the challenging buyer’s market of today.
*Sourced from the Calgary Real Estate Board (CREB®)
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