Home – Improvement November marks a rise in sales!
City of Calgary, December 1, 2017 – The November housing market was spurred by a rise in sales, particularly in the lower price ranges. Sales totaled 1,411 units in November, an increase of 15 per cent over last year. This is comparable to longer-term averages for the month of November. Improved sales activity occurred in each of the housing segments, with most of the gains occurring in homes priced under $500,000. “The combination of improved confidence and pending mortgage rule changes have likely contributed to the stronger sales activity this month,” said CREB® chief economist Ann-Marie Lurie. According to Lurie, the last time that sales activity rose to long-term averages for the month was October 2016, when the stress test for high-ratio loans was first announced. “Moving forward, we will continue to monitor shifts in demand as improving economic conditions should help offset the impact to the housing market after the new lending policy comes into force in January,” said Lurie. The largest gains in the detached sector were in the $300,000 – $399,999 price range, while the apartment and attached sectors saw the largest gains among homes priced below $300,000. “We have seen some improvements in confidence with many of our clients. There are some concerns regarding the changes in the lending market, but there is also a significant amount of confusion regarding how it will affect them,” said CREB® president David P. Brown. “For a lot of buyers, they are interested in taking advantage of the choice in the market at all price ranges.” The rise in sales relative to new listings improved this month, helping ease inventory levels over the previous month and keeping the months of supply relatively stable. However, the amount of supply relative to the sales in the market remains elevated. This continues to weigh on prices. Citywide benchmark prices totaled $436,700, 0.50 per cent below last month, but 0.46 per cent above last year’s levels. Both median and average prices recorded a more significant decline compared to last year. This should not come as a surprise, as more sales in the lower price range this year compared to last November would cause a more pronounced drop in average and median prices.
HOUSING MARKET FACTS • Year-to-date detached sales have totaled 11,220 units, 5.5 per cent above last year’s levels. Detached sales have improved across all districts in the city, except for the North East. However, higher supply levels have been impacting the price recovery in the detached market. Year-to-date benchmark prices remain slightly above last year, but remain over three per cent below recent highs.
• Rising condominium apartment sales have not been able to offset the continued rise in new listings, which are contributing to the persistent oversupply in this market. As a result, prices continue to ease. As of November, citywide apartment prices totaled $258,300. This is a 1.3 per cent decline from last month, nearly four per cent lower than last year and nearly 14 per cent lower than monthly highs recorded in 2014.
• Within the attached market, the semi-detached sector has outperformed the row market in terms of price appreciation. However, in both cases, prices remain 3.3 and 7.9 per cent below recent highs.
CREB December 1, 2017 ( Release )
DARYL CARLSON – RE/MAX Realty Professionals
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