Detached sales activity boosts February housing market.
After the first two months of the year, Calgary's detached sector continues to drive a slow transition in the housing market. February's sales totaled 1,342 units, which is still 19% below long-term averages, but an improvement over the past two years.
As sales kept trending upward, detached inventory continued to ease in February. These conditions caused months of supply to fall to 2.4 months, putting less downward pressure on pricing. Unadjusted detached becnhmark prices totaled $501,900 in February, which is 1% lower than prices recorded last year, but still slightly higher than January figures.
There seems to be a new sense of optimism these days. Some sellers are feeling upbeat about the changing landscape and the improved chances of selling their home. Other people are looking at the spring market with caution and wondering if we're going to see a higher than expected surge of listings. While there's less product on the market right now, sellers still need to be realistic with their pricing.
With sales improving and new listings and inventories contracting-two key measures of market balance, there's good evidence to show that the housing market has started a trend toward more balanced conditions.
The transition in the housing market appears to be underway. However, it is important to note that this change is primarily being driven by improvements in the detached market and stability in the labour market.
It will take some time for these conditions to translate into all housing segments and achieve price recovery, but all indicators continue to point toward a slow transition from contracting market toward one that is stabilizing at lower levels.
For the entire CREB® forecast, visit creb.com.