Calgary Real Estate Update 03/18

Calgary housing market prices hold, but sales fall 02/18

City of Calgary, March 1, 2018–Residential home sales declined in February, but a decline in new listings helped keep prices steady this month.
Sales totalled 1,094 units in February, 18 percent below last year’s activity. Easing sales occurred across all property types this month, which outpaced the sales growth that occurred in January. After the first two months of the year, sales activity remains well below longer-term averages.
“Housing market conditions are still adjusting to rising lending rates and changes in lending requirements. This process is expected to be bumpy, with demand adjustments leading the changes,” said CREB® chief economist Ann-Marie Lurie.
“However, it is important to remember that it is early in the process and the impact on prices will ultimately be dependent on the supply response.”
A decline in new listings was not enough to prevent further gains in inventory levels, but it offset some of the activity. In the detached sector, action in the $600,000 -$999,999 range recorded the most substantial gains in supply relative to sales.
“This is a market where the fundamentals of a sound pricing strategy need to be understood by sellers. At the same time, savvy buyers typically have a clear understanding of how much of a mortgage they can get,” said CREB® president Tom Westcott.
“With all the recent changes, potential purchasers should be obtaining pre-approvals, to understand what buyers can afford. It also provides buyers flexibility in this market.”
Citywide benchmark prices totalled $434,300 in February, which is just above levels recorded last month, but comparable to 2017 levels. While year-over-year price growth remained relatively stable in both the detached and attached markets, apartment prices remained three percent below last year’s levels.
Information provided by the Calgary Real Estate Board.

*The rest of the story.
* Most snow in 20 years
* Coldest winter in years
* Inventory is increasing
* Interest rates are creeping up
* New mortgage qualifying standards for buyers 
* The first snowmelt usually kick starts the real estate market
 * Condo sales improve slightly
* The price of crude is above $60 a barrel
* Alberta is looking at an election in just over a year

Have a great March and we will be in touch in April. Please call or email us today if e can help. Thank you, Rod Forsythe.