Kens Take On – CREB’s YYC Stats for Sept-2017

Mon, 02 Oct by Ken MacAulay

The Big Picture – According to CREB’s Latest Stats – Sept-2017 

Inventory increases and sales drop in September, but overall sales for the year remain higher than last year.  ( Kens Comments ) 
Strong gains in the first-half of 2017 has put the Calgary year-to-date sales at seven per cent above last years’ levels and 11 per cent below long-term averages, but challenges remain with easing sales and rising new listings. ( pent up demand from 2016 ) 
Inventories rose across all property types to 6,861 units, while both apartment and attached-style properties saw the highest inventory on record for the month of September.
“The recent rise in inventories is preventing further price recovery as sales activity has moderated over recent months. This does not come as a surprise as sales activity is expected to remain modest by historical standards until moresubstantial economic improvements take hold,” said CREB® chief economist Ann-Marie Lurie.
“Some may consider this a setback, but it is important to note that recent movements are balancing out the higher than expected gains that occurred in the first-half of the year.”
“There are several factors influencing new listings. Given the falling prices over the past two years, some sellers were waiting for market conditions to improve prior to listing their homes. More stability in the market hasprompted many of those sellers to no longer delay their listing decision,” said CREB® president David P. Brown.
New listings in September totalled 3,266 units, a year-over-year gain of nearly 10 per cent.( Sellers are finally realizing after a 2 year drop the YYC RE Market is not bouncing back like they thought )
“In some segments, rising new home inventories are also impacting total housing supply. Ultimately, prices are affected. However, this inventory also opens up opportunity for buyers to step up into a home that was financially unattainable.” ( Especially first time or move-up Buyers ) 
As of September, unadjusted benchmark prices totaled $441,500. This is 0.2 per cent below last month, but nearly one per cent above last year. Downward price pressure this month occurred across most product types.However, year-to-date benchmark prices in the detached sector remain comparable to last year. ( This is the indicator CREB & I like to use on a monthly bases , which means the detached market is relatively flat)  
Prices in the detached sector remain relatively stable compared to last year.
Condominium apartment prices remain4% below2016 levels and twelve per cent below 2014 highs.This sector continues to struggle with price declines resulting from excess supply as months of supply pushed above eight months.
Prices in the detached sector remain relatively stable compared to last year.
Condominium apartment prices remain four per cent below 2016 levels and twelve per cent below 2014 highs. This sector continues to struggle with price declines resulting from excess supply as months of supply pushed above eight months. (According to the Aug 2017 stats from CMHC .. the new condo starts in YYC , 2745 units  in 2016 & 2520 units  in 2017 with another 1028 un-occupied, may make you believe there maybe a glut of condos on the Market soon … )

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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.