January 2015 Calgary Real Estate Market Report

creb

Download CREB®’s January 2015 Report: click here pdf

CREB® commentary:  Low oil prices throughout January, combined with a shifting outlook in the energy sector, caused unease for consumers. As a result, calmonthly housing sales activity fell to levels not seen in five years.

“Economic conditions this year are expected to be weaker than original estimates provided in December 2014,” said CREB® chief economist Ann-Marie Lurie.

“This change is partly connected to continued low energy prices, which impact consumer confidence. A lack of recovery in oil has many concerned about their employment status and this concern is reflected through the weaker sales activity in Calgary’s January resale figures,” said Lurie.

Sales levels were over 35 per cent lower than the 10 year average and declined across all three sectors in the city (Attached, detached and apartment). Meanwhile, new listings increased by 39 per cent city-wide, causing inventory levels to rise.

“There are many reasons for consumers to list their home,” said CREB® president Corinne Lyall. “One reason may be that consumers are concerned about what will happen to Calgary’s economy and their personal exposure to this risk,” said Lyall.

While new listing activity increased in every price range this month, the rise in new listings was primarily due to gains in the higher price ranges. In the detached sector, new listings increase by 32 per cent relative to January 2014, all of which occurred in product priced over $400,000.

Despite the recent supply increase in the market, benchmark prices managed to remain relatively stable this month. January benchmark prices totaled $459,100, a 7.7 per cent increase relative to January 2014, but similar to December figures.

Although residential prices remained relatively stable, there was some variation in sectors. The apartment sector recorded the largest gain in new listings relative to sales and inventory levels nearly doubled reaching 1,148 units. The rise in supply relative to demand placed downward pressure on benchmark prices, which fell to $298,700 compared to $300,400 in December.

“It’s important for sellers to set appropriate expectations in this market,” said Lyall. “They need to consider their property type, the competition they may be facing in their community, their reasons for selling and, of course, when they ultimately need their property to be sold.”

Detached benchmark prices totaled $518,600 in January, similar to December levels, but a 7.9 per cent increase relative to January 2014. Meanwhile, the attached unadjusted benchmark price in January totaled $356,200, similar to prices recorded in December.

“Housing decisions will likely continue to be postponed for many consumers until they can see what happens with the economic climate in the spring,” said Lurie.

“Nonetheless, if supply levels continue to rise at levels that exceed the pace of demand growth, we can expect this will start to impact prices in the city.”

8 responses to “January 2015 Calgary Real Estate Market Report

  1. Hi Mike,
    I noticed that CREB is reporting the median for last February as $390K and average as $409K in the total residential category. In reality, the median last February was $424K and average was $482 for the same all residential category. Is the site buggy?

    Thanks! Len

  2. Hi Len,

    Those are the month-to-date stats for February on CREB®’s site (just February 1st sales as of today)

  3. I see what you are talking about Len. The old archived 2014 report for February is very different from what CREB has on their current stats page for Feb 2014. I can see a tiny adjustment here and there as some sales may have fallen thru after the report was generated, but these differences are huge.


    Those are month-to-date figures only. See previous comment.
    -Mike Fotiou

  4. I get it now Mike, thanks for clearing this up.

  5. Thanks Mike for clarifying! Has the reporting changed this month? I could be wrong but I thought they had previously been reporting the average for the whole month of the previous year. There didn’t seem to be daily fluctuations in the average and median. But it makes sense how they are doing.
    Thanks again. Len

  6. Len, average & median MTD prices typically fluctuate wildly early in the month while sales are low and then begin to stabilize towards month-end.

    For example, the MTD average price today is $412,450. As it stands right now, the average price will shoot up to around $489,000 when you check back tomorrow because of a few high priced sales.

  7. Mike, did you notice the change in language and numbers from Jan 2014 to Jan 2015? I am not sure why that had to change? Have you seen a change in language of these stats before?

  8. Hello Chad,

    The stat changes are explained in this post here and the updated historical data with new categories is available here. Hope that helps.

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