June 1-7, 2015 Calgary Real Estate Market Update

As we approach the midway point of 2015 and review the state of Calgary’s real estate market, we see that conditions aren’t as bad as many had feared – or others had hoped.

There’s no denying that sales have taken a massive hit as a result of oil prices and its rippling effects into the job market and consumer confidence.   Buyers have been tentative, cautious; but they are steadily returning.

Home sales in the first week of June were down -18.3% from the same period a year ago, the smallest annual decline to start a month so far in 2015.

Calgary home sales, June 1-7, Y/Y comparison

Calgary home sales, June 1-7, Y/Y comparison

After that surge of new listings in late 2014 and early in January, sellers have calmed and taken a wait-and-see approach upon seeing prices remaining relatively sticky.  New listings year-to-date are down -6.5% y/y and down -23.9% so far this month.

New Listings, June 1-7, Y/Y comparison

New Listings, June 1-7, Y/Y comparison

Sales-to-new-listings-ration, June 1-7 2015

Sales-to-new-listings-ration, June 1-7 2015

There are currently 661 (13.9%) more homes on the market today than a year ago resulting in a much more balanced market than the sales-to-new-listings-ratio suggests on its own.

However, it must be noted that there are varying degrees of activity depending on price range.   Entry level priced homes are a hot commodity and in a seller’s market.  For example, there is only a 0.7 month supply of detached homes available under $400,000, but 6.7 months of inventory for detached homes priced above $800,000.

Active Listings, June 7th, Y/Y comparison

Active Listings, June 7th, Y/Y comparison

Last June the all-time luxury sales record was set with 104 homes selling for $1 million or more.    There’s no chance of a new record this month, but 2014/2013 outliers aside, the 15 high-end sales so far this month is consistent with the past decade.  Expect large y/y average price swings.

Calgary Luxury Home Sales, June 1-7, Y/Y comparison

Calgary Luxury Home Sales, June 1-7, Y/Y comparison

 Calgary Real Estate Stats Summary, June 1-7, Y/Y comparison

Calgary Real Estate Stats Summary, June 1-7, Y/Y comparison

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