Price To Sell
Calgary Real Estate Board (CREB) Activity Report
As expected, slow sales this quarter have persisted through March in the City of Calgary. This is not a surprise, after stronger growth in sales at the end of last year following the announced changes to the lending market.
First quarter SALES totaled 3,423 units, nearly 18 per cent below last year’s levels and 24 per cent below long-term averages. Easing sales and modest gains in new listings caused inventories to rise increasing the supply to remain above four months.
While economic conditions are slowly improving, it has not been enough to outpace the current impact of higher lending rates.
While prices trended down on a quarterly basis, they remained relatively unchanged over last year’s levels due to modest gains in the detached sector offsetting declines in the apartment sector. The citywide benchmark price for detached product averaged $502,000 in the first quarter. This is slightly lower than the fourth quarter of last year, but comparable to levels recorded in the first quarter of last year. In March, the detached price reached $503,800, 3.6 per cent below pre-recession highs, but one per cent above the lows recorded during the recession.
Detached market inventories in the first quarter of 2017 were low compared to historical standards. This year, detached inventories have averaged 2,573 units over the first quarter, 10 per cent below first quarter averages recorded during 2015 and 2016. Spring will have more inventory than last year, slowing progress on price recovery. However, the amount of price adjustment will vary depending on competing supply by location and product type.
We are entering spring which tend to the most active part of the year for real estate. However, there are a lot of homes on the market right now. With the homes that are selling we are seeing that the number of days on the market is longer, and the prices are being reduced.
My advice is to listen to the market and if you want to sell, price it right.
For the entire CREB® forecast, visit creb.com.
Information was last updated April 2018.