There was a slight rise in home sales in the Calgary market in March but inventory remains elevated.
Demand for affordable detached and attached homes is high according to the latest report from Calgary Real Estate Board which says that stronger sales at the lower end of the market have not outweighed easing across higher priced product.
First-quarter sales dropped to 3,108 units. This is 9% below last year and 28% below typical levels of activity.
The market is struggling with persistent oversupply and even though new listings have eased in recent months, it has done little to address the situation with 6,595 units available, 5 months of supply.
“Inventory is still high. It will still take time for our market to transition towards more balanced conditions and stable pricing,” said CREB chief economist Ann-Marie Lurie.
The stats
Detached
- First-quarter sales declined by nearly 9% compared to last year and 30% below typical levels of activity.
- Detached sales have varied depending on location and price range, with gains occurring mostly in the most affordable price ranges of each district.
- In March, citywide detached sales improved for all homes priced under $500,000.
- Despite easing in new listings, inventories increased over last year’s levels, pushing months of supply to the highest level ever recorded for the month of March. When considering activity by districts, the North East and East districts have seen the level of oversupply ease compared to last year.
- Oversupply in the detached sector continues to weigh on prices across all districts in the city. Citywide detached benchmark prices eased 5.4% compared to last year for a total price of $475,800.
Apartment
- Resale condominium sales fell by 14% in March, causing first-quarter sales to total 464 units, 17% below last year. The decline did not occur in all districts, as sales activity improved in both the North and West districts of the city. Despite some signs of improvements in those districts, activity remains well below long-term trends.
- Supply in this sector is showing signs of adjusting to the lower levels of demand. New listings eased again this month compared to last year’s levels. Unlike other property types, this adjustment is impacting inventories. Inventory in March was 1,488 units, 12% below last year’s levels.
- The months of supply has edged down from levels recorded earlier in the year, but due to weak sales, it is elevated compared to last year’s levels.
- Citywide, apartment condominium prices fell by 0.7% from last month and 2.6% over last year. However, in both the North East and South East districts, prices posted a modest gain over last year.
Attached
- There was a slight uptick in attached sales in March due to improvements in both the semi-detached and row sectors. Despite the gains in March, year-to-date sales remain four per cent below last year’s levels and 16% below long-term averages.
- Year-to-date sales have eased, but there have been improvements in the South and South East districts.
- Despite some improvements in sales, citywide months of supply remain elevated.
- Prices continued to trend down for semi-detached product. March’s benchmark price was $391,000, nearly six per cent below last year’s levels and 0.4% below last month’s price. However, the North district saw different results, as tightening months of supply supported a modest gain in prices compared to both last month and last year.
- Row prices in March remained relatively flat compared to February levels, but remain more than four per cent below last year’s levels and over 13% lower than previous highs.
