Is the Calgary Market Improving?

Mon, 03 Jun by sheldonzacharias

Calgary’s May Stats are showing some signs of life in the Calgary Real Estate World. After months of bad stats, this is the second month in a row that Calgary Home Sales have started showing a positive trend, Call me at 403-620-4504 and we can Talk Real Estate.
Media release: Sales activity improves for second consecutive month
City of Calgary, June 3, 2019 – Sales growth in May was met with a decline in new listings. This combination eased the pressure on inventory levels, which finished the month at 7,467 units, a decline of 12 per cent compared to last year.
Improving sales relative to inventory levels caused the months of supply to ease to just under four months. While still oversupplied, this is an improvement from the five months of supply recorded last May.
Citywide sales in May totalled 1,921 units, 11 per cent higher than last year’s levels. However, sales remain 10 per cent below longer-term trends. This sales growth was primarily driven by homes priced under $500,000.
“While sales activity remains low based on historical activity for May, the easing prices have brought some people back to market, while also preventing some others from listing their homes,” said CREB® chief economist Ann-Marie Lurie.
“This has started to push the market towards more balanced conditions. If this trend continues, it could limit some of the downward pressure on prices.”
Citywide benchmark prices totalled $423,100 in May. Prices have shown some signs of improvement month-over-month but remain four per cent lower than 2018 levels.

HOUSING MARKET FACTS
Detached
Detached sales in May totalled 1,182 units. This is a 12 per cent increase over last year, but still 13 per cent below long-term averages. The improvement in sales was driven primarily by gains in homes priced under $500,000.
Sales activity increased across most districts in May. However, year-to-dates sales have only increased in the East, South and North East districts of the city. Citywide sales remain one per cent lower than last year’s levels.
New listings in May pulled back significantly from previous year’s levels. Combined with an improvement in sales, this resulted in inventories declining from 4,504 units last May to 3,921 units this month. This is the first time since May 2017 that year-over-year inventories declined.
Easing inventory and improving sales caused months of supply to ease to 3.3 months. This is still elevated compared to historical levels, but represents an improvement compared to levels from the past year.
Prices have remained relatively stable over the past few months, with some modest monthly improvements. However, the oversupply scenario has left prices four per cent lower than last year and seven per cent lower than 2014 highs.
Apartment
The improvement in monthly sales was not enough to offset previous declines. Year-to-date apartment sales sit at 1,030 units. This is seven per cent lower than last year and 28 per cent lower than longer-term averages. Easing sales were met with fewer new listings, reducing the market inventory. This pushed months of supply to just over five months.
If the reduction in oversupply continues, it will eventually help limit price declines. However, this market remains oversupplied and prices continue to edge down.
May benchmark prices totalled $246,900, 0.6 per cent lower than last month and nearly three per cent lower than last year’s levels. This is resulting in a total price adjustment of over 17 per cent since 2014.
Attached
Attached sales activity continue to improve in May. Year-to-date sales improved by two per cent, making this the only sector to record a year-to-date improvement. Improvements occurred throughout most districts of the city, apart from the City Centre, North West and West districts.
New listings have also pulled back relative to sales. This is causing inventories to ease compared to last year and months of supply to trend down.
Benchmark prices remain five per cent lower than last year’s levels but have seen some modest gains on a month-to-month basis. Despite some signs of improvement, prices remain 10 per cent lower than 2014 highs.

April Stats For Calgary

Wed, 01 May by sheldonzacharias

April brings a slight inventory decline
City of Calgary, May 1, 2019 – There have been no significant changes occurring in sales activity, but the number of new listings coming onto the market continues to ease relative to 2018 levels.
The decline in new listings was enough to start chipping away at overall inventory levels, which have eased slightly compared to last year.
The slight adjustment in supply levels has helped support further reductions in the months of supply, which was 4.6 months in April. While this level still represents oversupply in our market, it does reflect improvement from the nearly seven months of supply that we saw at the start of the year.
“Demand remains relatively weak in the resale market. However, if supply levels continue to adjust, this could help reduce the amount of oversupply and eventually support some price stability,” said CREB® chief economist Ann-Marie Lurie.
As of April, the total residential benchmark price in Calgary was $415,900. This is slightly higher than last month, but still nearly five per cent lower than last year’s levels.
Citywide sales were 1,547 units in April, two per cent higher than last year’s levels. Year-to-date sales remain nearly six per cent lower than last year and are 26 per cent below longer-term averages.
“Sales have been improving mostly in the lower price ranges, causing tighter supply conditions in that segment. This will likely have a different impact on price trends in the lower price ranges depending on location,” said Lurie.
HOUSING MARKET FACTS
Detached
Detached sales improved by nearly three per cent in April compared to last year, due to gains in homes priced under $500,000. However, with 930 sales, activity still remain 24 per cent below long-term averages. Recent gains were also not high enough to offset pullbacks earlier in the year, causing year-to-date sales to fall by over five per cent.
Improving sales did not occur across all districts. In April, there was growth in the North East, North West, South and South East districts of the city. Despite some signs of sales improvement, overall sales activity remains well below 10-year averages throughout every region in the city.
April detached inventories citywide continue to remain just above levels recorded last year. Months of supply remain relatively unchanged at four months.
The amount of oversupply has varied significantly depending on the area of the city. Months of supply has only risen in the City Centre, South and West districts of the city.
Despite some of the adjustments occurring in the detached sector, overall April prices remain lower than last year’s levels across all districts. Year to date, the largest year-over-year declines occurred in in the City Centre, North West and South districts.
Apartment
Despite the affordability of apartment condominiums, sales activity continues to fall across the city and in most districts. There have been 714 apartment condominium sales so far this year, the lowest level since 2001.
The decline in new listings has started to outweigh the sales decline, causing inventories to ease. As of April, resale apartment condominium inventories totaled 1,546 units, 16 per cent lower than inventory levels last April.
The easing inventories have also caused the months of supply to decline to just above six months. While this is still a buyers’ market, this trend could help ease the downward pressure on prices if it continues.
Apartment condominium prices in April totalled $250,400, comparable to last month, but over two per cent below last year’s levels and nearly 17 per cent below 2014 highs.
Attached
Attached sales activity improved compared to last year’s levels for the second straight month, almost offsetting the declines occurring in the first two months of the year. Year-to-date sales were 1,113 units, nearly one per cent below last year’s levels, and 14 per cent below long-term averages.
Year-to-date sales have improved in all districts except the City Centre, North West and West.
Improved sales and easing listings have helped prevent further inventory gains in this sector and overall months of supply have trended down to five months.
Following several months of prices trending down, semi-detached benchmark prices in April rose over the previous month. However, prices remain over five per cent below last year’s levels at $395,300.
Row prices were $284,900 in April, over five per cent below last year’s levels.
REGIONAL MARKET FACTS
Airdrie
Stronger sales in March and April offset earlier declines, causing year-to-date sales to total 363 units, similar to levels recorded last year. New listings continue to decline, causing April inventories to ease compared to last year. Months of supply remain elevated at five months, but this is a notable improvement compared to last year, when months of supply was over six months.
Rising sales and easing inventories helped prevent further price declines in April compared to March. However, overall, April prices remained nearly four per cent below last year’s levels. Prices have eased across all property types, with the largest year-to-date decline in the apartment sector at eight per cent.
Cochrane
Despite improving sales in April, year-to-date sales in Cochrane eased by six per cent compared to last year. However, new listings have also eased, helping reduce some of the inventory in the market. While inventories and months of supply remain elevated, for the first time since June 2018, the months of supply fell below six months.
Some improvement with oversupply has likely prevented further monthly declines in prices. As of April, total benchmark prices remain over three per cent below last year’s levels for a total of $415,100.
Okotoks
Despite some recent improvements in sales, year-to-date sales activity slowed compared to last year. New listings have also eased, but it was not enough to prevent further inventory gains, keeping months of supply above five months.
The amount of oversupply has impacted prices. April residential prices totalled $406,700. This is nearly four per cent below last year’s levels. Price declines were slightly higher in the attached sector, with a year-over-year decline of nearly five per cent.

First Time Home buyers Program

Tue, 19 Mar by sheldonzacharias

The announcement of a new CMHC First-Time Home Buyers Incentive Plan represents a shared equity mortgage program that would give eligible first-time homebuyers the ability to lower their borrowing costs by sharing the cost of buying a home with CMHC.
The incentive would provide funding (equity sharing) of up to five percent of the purchase price of an existing home, or 10 percent of a newly constructed home. No ongoing monthly payments are required. The buyer would repay the incentive, for example at resale. The government has budgeted up to $1.25 billion over the next three years to support this program.
For example, if a borrower purchases a $400,000 home with five per cent down and a five per cent CMHC shared equity mortgage ($20,000), the size of the borrower’s insured mortgage would be reduced from $380,000 to $360,000, helping to lower the borrower’s monthly mortgage bill. This would make it easier for Canadians to buy homes they can afford.
The program limits eligibility to households earning a maximum of $120,000 annually, and lets them borrow no more than four times their annual household income. This limits a home purchase to roughly $505,000. This Incentive Plan will be discussed more fully in the coming days, but it is not expected to begin until fall, 2019. In principle, the increased equity share eligibility for newly constructed homes will help incent new construction and supply across Canada.
Further analysis is needed, however, some aspiring homebuyers, especially at the lower end of the economic ladder, will have greater opportunities to purchase a home with the assistance of this new program.
Also of note is an increase in the eligible RRSP withdrawal amount through the Home Buyers’ Plan (HBP). Previously $25,000, this has been increased to a maximum to $35,000.
The budget included a lengthy defense of the current stress tests but does suggest that adjustments may be made in future. We will continue to discuss this issue with policymakers.
While we did not see immediate movement on the stress tests, and the new Home Buyers Incentive Plan can be seen as an alternate and more targeted response than an insurable 30 year amortization, we are encouraged by the announcements made today.
The forthcoming federal election will provide opportunities to continue the conversations with policymakers and candidates in the coming months. We will continue our ongoing market analysis and maintain our support for a stable housing market for our members and their customers.

Media release: New year kicks off with slow sales

Fri, 01 Feb by sheldonzacharias

January 2019 Stats

City of Calgary, February 1, 2019 –

As economic challenges linger into 2019, housing markets remain on a sluggish pace.
January sales totalled 804 units, 16 per cent below last year and 21 per cent below long-term averages for the month.

“The slow start to the year does not come as a surprise, as concerns about job losses and the state of the energy sector weigh on consumers. We anticipate that the slow market conditions will persist throughout much of the first quarter,” said CREB® chief economist Ann-Marie Lurie.

The number of new listings entering the market remained comparable to last year, but those levels far surpassed sales activity. This is resulted in further gains in inventory levels. Elevated inventories relative to sales caused months of supply to rise to nearly seven months.

Persistent buyers’ market conditions have continued to impact prices. Citywide residential benchmark prices eased to $414,800 in January. This is nearly one per cent lower than December figures and four per cent below January 2018 levels.

HOUSING MARKET FACTS

Detached
Detached sales eased by 17 per cent compared to last year. However, declines did not occur across all districts, as sales activity improved in both the North West and North East districts. The most significant sales declines occurred in the North and West districts of the city.
New listing rose across all districts except the North East, North and South East districts. Only the North East district recorded easing months of supply compared to last year.
Detached benchmark prices totalled $476,500, a one per cent decline compared to December and over four per cent lower than last January.
Prices eased across all districts. The largest year-over-year declines occurred in the South, North West and City Centre districts.
Apartment
Apartment sales totalled 126 units in January. This is 13 per cent below last year and over 20 per cent below long-term averages for the month.
Slower sales and lower new listings helped inventory levels ease. Currently, there are 1,173 units in inventory, which is nine per cent lower than January 2018 levels.
Despite some adjustments in inventory, months of supply remained elevated at nine months, impacting prices. While prices remained relatively flat compared to last month, they declined by two per cent compared to levels from last January.
Prices remain well below previous highs, but there were some price improvements compared to last year in both the North East and South East districts.
Attached
Sales declined for both row and semi-detached product types. New listings rose, causing inventories to rise for both product types.
With the attached sector firmly reflecting buyers’ market conditions, prices eased by over four per cent for a January benchmark price of $313,700.
Semi-detached prices eased by nearly five per cent compared to last year for a total of $393,100. The steepest declines occurred in the City Centre and South districts, with adjustments of over six per cent.
Row prices declined by four per cent compared to last year for a total of $284,300. All districts recorded price declines, but the most notable decline occurred in the City Centre, where prices were nearly eight per cent lower than last year.

Calgary Real Estate Board Annual Forecast Breakfast!

Wed, 30 Jan by sheldonzacharias

MEDIA RELEASE: Economic challenges to affect Calgary’s housing market in 2019
Calgary, Jan. 30, 2019 –
The challenging economic climate in Calgary is expected to persist into 2019.
Easing global oil prices, concerns regarding market access and easing investment activity are weighing on the energy sector and are expected to slow growth prospects in the province this year.
“Slowing growth, weak job prospects and lack of confidence are all factors that are contributing to the expected easing in sales activity this year,” said Ann-Marie Lurie, CREB® Chief Economist.
“At the same time, our market continues to struggle with high inventory levels and further potential rate hikes, all of which is expected to cause additional price declines this year.”
There are signs that supply in the market is starting to adjust to slower sales, but the pace of adjustment is expected to be slow. Overall, it will help reduce some oversupply in the market and put the industry in a more stable position by 2020.
Buyers’ market conditions are expected to persist throughout most of the year, impacting prices across all property types. However, the pace of decline is expected to ease by the end of the year, as concerns over the economy ease.
While further easing in the housing market is expected, this will not likely be the case for all price ranges, as demand for affordable product is expected to continue to improve, given shifts in lending requirements and adjustments in expectations.
“In this market, buyers have the advantage of choice. A REALTOR® can help buyers find a home that best fits their lifestyle,” said Alan Tennant, CREB® CEO.
“For home sellers, knowing all the data and facts surrounding their home is critical to maximize their selling price. Working with a real estate professional can take the guess work out of the process.”

Job market weakness and lending restrictions a common thread in 2018’s housing market

Wed, 02 Jan by sheldonzacharias

Media release: Job market weakness and lending restrictions a common thread in 2018’s housing market

City of Calgary, January 2, 2019 –

As oversupply continues in Calgary’s housing market, December prices eased by one per cent compared to last month and are over three per cent below last December.

“Persistent weakness in the job market and changes in the lending market impacted sales activity in the resale market this year,” said CREB® chief economist Ann-Marie Lurie.

“This contributed to elevated supply in the resale market, resulting in price declines.”
December sales totalled 794 units, a 21 per cent decline over the previous year. Overall year-to-date sales in the city totalled 16,144 units. This is a 14 per cent decline over 2017 and nearly 20 per cent below long-term averages.

Inventory levels in December sat at 4,904 units. This is well above levels recorded last year and 30 per cent above typical levels for the month. Elevated resale inventories in 2018 were caused by gains in the detached and attached sectors.

Throughout 2018, the months of supply remained elevated and averaged 5.2 months. This contributed to the annual average benchmark price decline of 1.5 per cent. Price declines occurred across all product types and have caused citywide figures to remain over nine per cent below the monthly highs recorded in 2014.

“Both buyers and sellers faced adjustments in expectations this year. Sellers had to compete with more choice in the resale market, but also the new-home market,” said CREB® president Tom Westcott.

“With less people looking for a home, it became a choice between delaying when to sell or adjusting the sale price. However, buyers looking for more affordable product did not find the same price adjustments that existed in some of the higher price ranges.”

More information on the 2018 housing market will be released at CREB®’s 2019 Forecast Conference & Tradeshow (www.crebforecast.com) on Jan. 30, 2019.

HOUSING MARKET FACTS
Detached
Detached sales declined across all districts in 2018. With citywide sales of 9,945 units, activity remains 21 per cent below typical levels for the year.
Detached inventories were higher than last year’s levels for each month of the year, including December. Slow sales caused the market to be oversupplied through most of 2018.
Detached benchmark prices totalled $481,400 in December, a one per cent decline over last month and a three per cent decline over last year. Overall, 2018 prices declined by 1.5 per cent compared to last year.
Prices have eased across most districts in 2018. The largest declines this year have occurred in the North East, North West and North districts.

Apartment
Apartment sales totalled 2,663 units in 2018. While the decline is less than other product types, levels are 22 per cent below long-term averages.
The apartment condominium sector has struggled with oversupply for almost three years and 2018 was no exception.
However, supply has been easing, as inventories this year averaged 1,584 units, one per cent below last year’s levels.
Despite slowing supply growth, the market remained oversupplied, causing further price declines. In December, benchmark prices were $251,500, over two per cent below last year. Annually, prices have declined by nearly three per cent for a total decline of 14 per cent since 2014.
Price declines this year have ranged from a high of nearly six per cent in the East district to a low of two per cent in both the City Centre and North West districts.

Attached
Declines for both row and semi-detached product resulted in 2018 attached sales of 3,536 units, a 15 per cent decline over the previous year and 14 per cent below long-term averages.
Slower sales activity prompted some pull-back in new listings, but this was limited to the row sector. Row new listings declined by four per cent and semi-detached new listings rose by nearly 15 per cent in 2018.
Despite some adjustments to new listings, inventory levels remained elevated, keeping the market in buyers’ market territory and putting downward pressure on prices.
In December, the semi-detached benchmark price totalled $397,500. This is a monthly and year-over-year decline of 0.8 and 3.8 per cent, respectively. Recent price declines have caused this sector to erase any of the gains that occurred last year, as 2018 prices remain just below 2017 levels. Overall, annual prices remain 1.4 per cent below 2014 peak levels.
Row prices have also been edging down. As of December, row prices were $288,400, a 1.5 per cent decline from last month and nearly four per cent below last year’s levels. Overall, 2018 prices remain two per cent below last year’s levels and nearly 10 per cent below previous highs.

October Real Estate Stats for Calgary!

Thu, 01 Nov by sheldonzacharias

Media release: Oversupplied market weighs on prices
City of Calgary, November 1, 2018 –

Elevated inventory levels compared to sales, are causing prices to ease further in Calgary’s housing market.

Citywide benchmark prices totaled $426,300 in October, trending down for the fifth consecutive month and resulting in a year-over-year decline of 2.9 per cent.

“Job growth in this city remains a concern, as unemployment levels remain well above levels expected for this year. Rising costs of ownership also continue to weigh on housing demand,” said CREB® chief economist Ann-Marie Lurie.

“At the same time, housing supply levels are not adjusting fast enough to current conditions, resulting in price adjustments.”

Inventories and sales totaled 7,345 and 1,322 in October. This has resulted in months of supply of 5.6, above levels typical for this month. While some easing in new listing growth will help prevent further inventory gains, inventory levels remain near record highs for the month of October.

“With these types of market conditions, many potential buyers should be able to find the home that they are looking for with well priced listings appearing in certain price ranges,” said CREB® president Tom Westcott. “Sellers need to manage expectations and have accurate data in order to be aware of what is selling in their community.”

For each of the property types, sales activity has improved in the lower price ranges, leaving most of those segments relatively balanced. However, the upper end of the ranges has seen significant gains in supply compared to demand, which is likely having more of an impact on prices in those ranges.
HOUSING MARKET FACTS
Detached
• Detached sales in October totaled 829 units, for an 8.6-per-cent decline, resulting in a year-to-date decline of 15 per cent. This is the slowest level of detached sales since the late ’90s.
• Year-to-date, the largest decline in sales occurred in the $600,000 – $999,999 price range, reflecting slow demand coming from move-up buyers.
• For the second month in a row, new-listing growth eased, helping prevent further inventory gains. However, as this segment remains oversupplied, prices continue to trend down.
• Detached benchmark prices totaled $490,200 in October. This is below last month and three per cent below last year. On a year-to-date basis, prices remain one per cent below last year’s levels.
• As of October, year-over-year prices have eased across all districts, with the largest declines occurring in the North East, North West, South and South East districts. This is likely a result of added competition from the new-home sector.

Apartment
• Year-to-date apartment sales have totaled 2,316 units, nearly seven per cent below last year. New listings have also eased by six per cent, helping reduce the amount of inventory in the market.
• Despite the easing inventories, the months of supply remains elevated at 7 months.
• Year-to-date apartment condominium prices have eased by 2.8 per cent and remain 14 per cent below 2014 highs. Declines occurred across all districts, with the steepest declines occurring in the North East, East and South districts.

Attached
• The attached sector has recorded year-to-date sales of 3,098. This is 15 per cent below last year and 14 per cent below long-term averages.
• Meanwhile, despite recent easing in new listings, October inventories are the highest level on record.
• The oversupply is affecting both the semi-detached and row sectors, which have seen prices trend down over the past 5 months.
• Year-to-date, row benchmark prices have averaged $298,140 this year, nearly two per cent below last year and nine per cent below previous highs. However, prices have remained relatively flat in both the City Centre and North West districts.
• As of October, semi-detached prices were $403,400, one per cent lower than last month and nearly three per cent lower than last year. Despite recent declines, year-to-date citywide prices remain relatively flat compared to last year. This was most due to gains in the City Centre, North East and East districts offsetting declines in the North West, South and South East.

Calgary Market Update

Wed, 03 Oct by sheldonzacharias

Media release: Persistent buyers’ market continues

City of Calgary, October 1, 2018 – With no change in the economic climate, Calgary’s sales activity totaled 1,272 units in September, a 13 per cent decline over the previous year and well below long-term averages. There was a pullback in sales across all product types, most notably the detached market.
“Calgary’s economy continues to struggle with unemployment, which rose again last month to over eight per cent. Concerns in the employment market, higher lending rates and shaken confidence are weighing on housing demand,” said CREB® chief economist Ann-Marie Lurie.
“At the same time, supply levels continue to remain high, resulting in persistent oversupply and price declines.”
Inventories totaled 7,941 units, pushing the months of supply to 6.25. This continuation in oversupply is placing downward pressure on prices. The unadjusted citywide benchmark price totaled $428,700 in September. This is nearly one per cent below last month and three per cent below last year’s levels.
“This is the new normal of Calgary’s real estate,” said CREB® president Tom Westcott.
“Some potential buyers may want to take advantage of the market conditions, but they face difficulties selling their existing home based on their expectations. This prevents them from purchasing something else.”
September sales have dipped, but third quarter figures generally point towards a slower decline in sales and some easing in new listings growth. This was not enough to impact inventory levels this quarter.
The Calgary economy continues to struggle, but there are some signs of improvement in the rental market, which could contribute to a slow reduction in overall housing supply,

HOUSING MARKET FACTS

Detached
Year-to-date sales eased to 7,945 units, over 20 per cent below the 10-year average. Sales eased across all price ranges, except properties under $300,000, which posted a modest gain.
Easing sales were met with some adjustments in new listings in September. However, inventories remain elevated and are higher than long-term averages in most districts.
Months of supply rose to 5.5 months in September and continue to weigh on housing prices across all districts.
Detached benchmark prices totaled $493,100 in September. This is a 0.8 per cent decline over last month and three per cent below the previous year.
Prices have trended down in most districts in September. However, on a year-to-date basis, benchmark prices remain above last year in both the City Centre and West districts.
Apartment
The apartment sector has seen the slowest decline in sales at six per cent so far this year. Like the detached sector, activity remains over 20 per cent below long-term averages, totaling 2,103 sales.
For the fourth month in a row, new listings have generally trended lower than levels recorded last year. This has helped reduce some of the inventory in the market compared to the previous year.
However, even with some reductions in inventory levels, the market continues to remain firmly in buyer’s territory when compared to the reduction in sales.
With more supply than demand, benchmark prices for apartment condominium continued to ease in September, declining by 0.4 per cent over last month and 2.7 per cent compared to last year.

Attached
The attached sector has recorded year-to-date sales of 2,814. This is 15 per cent below last year and 14 per cent below long-term averages.
With no significant reduction in new listings, inventory levels remained elevated, pushing up months of supply to over seven months.
Elevated levels of supply compared to demand persisted for both row and semi-detached product types. Like all other sectors, the oversupply has weighed on prices across all districts, except the City Centre, North East and East.
While September semi-detached benchmark prices eased, year-to-date prices remained just above last year’s levels. The recent oversupply has eroded some of the steps made toward price recovery last year.
Row benchmark prices have averaged $298,667 this year, nearly two per cent below last year and nine per cent below previous highs. Despite the citywide pullback, row prices have remained relatively stable in the City Centre, North West and South East districts.

REGIONAL MARKET FACTS
Airdrie
Airdrie’s housing market has exhibited buyer’s market conditions so far this year. This is largely due to weak economic conditions that have hindered growth in demand. This does not help alleviate excess supply and has led to a downward pressure on benchmark prices for detached homes.
Year-to-date total residential sales in Airdrie have declined compared to last year and sit at levels comparable to activity recorded in 2012. Meanwhile, new listings have remained elevated, causing inventories to reach new highs for September.
Elevated months of supply have continued to place downward pressure on prices. The year-to-date detached benchmark price averaged $371,244. This is a 1.7 per cent decline from 2017 levels and five per cent below previous highs.
Cochrane
Affected by similarly weak economic conditions, the housing market in Cochrane has also experienced slight supply-side imbalances.
Year-to-date sales in the town were recorded at 477 units, 59 units lower than 2017. Sales growth has been trending downward for most of the year. However, levels in 2018 are still higher than those recorded in 2015 and 2016.
New listings in Cochrane have been persistently growing for most of the year and year-to-date levels are 269 units higher than long-term averages. Inventories have now reached a new September peak at 360 units, leading to elevated months of supply.
The oversupply in the market has started to cause prices to trend down in the third quarter. However, it has not been enough to erase earlier gains, leaving year-to-date benchmark prices just above last year’s levels. So far this year, detached prices remain four per cent below recent highs.
Okotoks
Okotoks is facing supply pressures in the market due to slowing sales and increases in new listings.
Despite the presence of oversupply, benchmark prices have managed to remain relatively stable in the third quarter compared to the previous quarter. At $436,422, year-to-date detached benchmark prices have averaged nearly one per cent higher than the previous year, but remain three per cent below previous highs.

CMHC on Deck to Make Things Easier for Self-Employed Borrowers

Tue, 21 Aug by sheldonzacharias

Qualifying for a mortgage is the first step when looking for Calgary homes for sale, as this is an integral part of the process that prepares you to obtain the keys to your beautiful new home. Canada Mortgage and Housing Corp. is now making changes that will make it much easier for the self-employed to effectively qualify for a mortgage. Self-Employment has long been a dream for many: you can set your own hours, be your own boss, and leverage the daily functions of your business in ways that profit you and your family.
You may be a freelancer, PR agent, designer, or owner of your own fully-fledged construction business. This has long been a roadblock for those wanting to buy: you have to document endless amounts of income, and since your income may be less predictable, qualifying for a mortgage can immediately become more difficult. There are many factors that can be used to support the lender’s decision to lend to certain borrowers who have only been in business for less than two years, or chiseling out their living dutifully in their chosen line of work for the same amount of time.
There will also be a provision for a broader range of documentation options to increase flexibility for the ultimate satisfying of income, and requirements regarding the all-important proof of employment. The changes are slated to go into effect October 1, and chief commercial officer Romy bowers said that self-employed Canadians are a very vital part of the workforce. Benefiting from the current competitive interest rates is of great importance for anyone, and as more and more in authority are recognizing that the self-employed are some of the most important contributors to the workforce, and they create, design, and distribute some of the coolest products and services in existence.
When someone who is self-employed sets out on their journey, they may be afraid, intimidated, and wondering how they will make ends meet. Success stories abound just as do failures, and if you are working from the crack of dawn to make sure you succeed, all of us here at Tost Realty Professionals Calgary want you to have access to the home of your dreams. We are excited to see just how this change in tolerance will help all of you who are self-employed, and ramp things up to closing for you and your family. We know that entrepreneurs usually have to work even harder than the average employee, sometimes carrying their hours on late as others are winding down and relaxing.
All of us on staff here believe that having a vision should never be penalized, and that the rewards for hard work and entrepreneurship should be celebrated with the promise of owning a fantastic new home. The process of qualifying for a mortgage has worried many, and for those who have chosen to be their own boss, these new provisions will most certainly pave the way for peace of mind, and an uptick in market vitality right here in Calgary!
Thank you to Crystal Tost and her Team for sharing!!

July Market Stats for Calgary

Thu, 02 Aug by sheldonzacharias

City of Calgary, August 1, 2018 –

Recent struggles in the job market, accompanied by yet another interest rate increase, is piling on to the decisions potential purchasers have to make in the housing market.
The month of July saw 1,547 units sold in Calgary, nearly five per cent below last year. New listings eased to 2,964 units, causing inventories to total 8,450 units. With more supply than demand, prices continued to edge down, with a citywide average of $435,200. This amounted to a month-over-month price decline of 0.30 per cent and year-over-year decline of 1.89 per cent.
“Despite some positive momentum in some aspects of our economy, our job market has continued to struggle as of late, with some easing in total employment levels over the past few months and persistently high unemployment rates,” said CREB® chief economist Ann-Marie Lurie.
“Also, the Bank of Canada raised rates again in July. Rising costs, combined with a slow recovery, are weighing on the demand for resale homes in the city. At the same time supply remains high and is resulting in an oversupplied market.”
Citywide months of supply have risen for each property type and currently range from nearly five months in the detached sector to seven months in the apartment sector. These elevated levels have been placing pressure on prices in the city.
Detached benchmark home prices totaled $501,300 in July, down 0.4 per cent from last month and over two per cent from last year’s levels. Year-to-date average benchmark prices in the detached sector remain just below levels recorded last year.
The apartment ownership sector continues to see the steepest declines, with year-to-date benchmark prices averaging $257,343, three per cent below last year and nearly 14 per cent below 2014 highs.
“In a buyers’ market, it’s critical for all parties to have the most up-to-date information to make a fully informed decision, whether you are buying or selling,” said CREB® president Tom Westcott.
“A REALTOR® can help make an accurate determination on how much to sell a home for or how much is too much when purchasing one.”

HOUSING MARKET FACTS
Detached
Oversupply issues continue to worsen in each district of the city compared to last year. However, compared to historical conditions, conditions today remain better than in 2016 in both the West and City Centre districts.
Year-to-date, the West and City Centre areas have recorded prices higher than last year’s levels and continue to edge towards price recovery. Benchmark prices in the West have averaged $733,329 this year, comparable to previous highs.
City Centre benchmark prices have averaged $693,243, nearly three per cent below previous highs. Most districts have recorded detached prices that remain over four per cent below previous highs.
Apartment
Easing new listings in the apartment condominium sector have prevented any further gains in the amount of inventory in the market.
Supply levels remain elevated compared to sales, keeping year-to-date prices three per cent below last year’s levels and nearly 14 per cent below previous highs.
Citywide inventory levels remain just below last year. July inventories edged down in the North East, North, North West, South and East areas of the city compared to the previous year.
Levels remain elevated by historical standards, but any reductions in inventory can help reduce oversupply.
Attached
Like the other sectors, attached sales have been easing this year, with 2,225 sales this year representing a 15 per cent decline over the previous year.
Gains in new listings pushed up inventory levels and months of supply compared to last year.
Citywide year-to-date semi-detached prices have eased by nearly one per cent compared to last year. Benchmark price changes have ranged from a three per cent decline in the North West district to a six per cent increase in the South district. Despite the annual gain this year in the South district, semi-detached prices remain nearly five per cent lower than that district’s peak.
Year-to-date benchmark row prices have increased on a citywide basis due to gains in the City Centre, North and North West districts. The annual gain is a positive move towards recovery, but row prices remain well below previous highs in every district of the city.

REGIONAL MARKET FACTS
Airdrie
2018 Airdrie residential sales have totalled 732 units so far, which is 11 per cent lower than the same period last year. Sales are at the lowest level when compared to the same period in the past six years.
Year-to-date new listings remain just above last year’s levels, totalling 1,600 units and reaching a new peak when compared to the same period in previous years. Total inventories in Airdrie have averaged 544 units this year, approximately 100 units higher than the same period in 2017.
The rise in inventory, combined with easing sales, has caused months of supply to average over 5.2 months for the year, impacting prices.
Detached benchmark prices have averaged $372,386 so far this year. This is 1.29 per cent lower than in 2017.
Cochrane
Year-to-date residential sales in Cochrane totalled 380 units. Compared to the same period in 2017, this number has declined compared to last year. However, total sales continue to be above long-term averages and levels during 2015-16.
New listings are also at historical highs and have reached a new peak of 862 residential units. This has pushed year-to-date average inventory levels up to monthly levels of 390 units and causing months of supply to average six months for this year.
Despite gains in supply on the market, detached benchmark prices in Cochrane remain relatively stable. Year-to-date detached prices averaged $425,714, just above last year but still nearly four per cent below peak levels.
Okotoks
Total residential sales in Okotoks have totalled 320 units so far in 2018. A decline over the previous year and below long-term trends.
New listings remain elevated and comparable to periods in previous years. This has kept inventories at near-record levels, with year-to-date average levels being totalling 248 units.
Months of supply have averaged 5.4 months this year, higher than historical standards. However, the elevated levels have not prevented prices from starting to recovery.Overall, year-to-date detached benchmark prices have averaged $436,786 this year, just above last year but nearly three per cent below peak levels.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.