There was a palpable chill in Airdrie’s real estate market as both sales and prices retreated in October.
A total of 93 homes sold during the month, a -42% annual drop and the largest year-over-year decline since July 2010. Granted, the enormity of the drop is partially due to last October’s record 160 sales. However, sales last month were still well below the 5-year average and was the slowest October since 2011.
The benchmark price fell on an annual basis for the first time since July 2012, down -0.8% from the previous October to $370,400.
For low sales volumes, the benchmark price is a more reliable indicator of price trends than other measures as shown in the chart below. Whereas average and median prices were showing y/y spikes throughout the year, the benchmark price clearly showed the slowing trend in price growth.
For what it’s worth, the average price was up 1.9% y/y in October to $394,712, while the median was off slightly by -0.2% to $387,500 .
Similar to Calgary, there is a clear market dichotomy between the lower and higher price brackets. Certain property types and price ranges will see greater downward price pressure than others.
For example, look at the sales/inventory distribution by price for Detached homes in the $400-$499,999 and the $500-$599,999 range.
There were 27 sales in the 400-499k range with 90 listings which translates to an inventory absorption rate of 3.3 months. Bumping up into the next $100,000 bracket, we have only 5 sales with an inventory of 60: a whole year’s worth of supply. Sellers will need to be aware of how their property is positioned in the mix and adjust their pricing strategy accordingly.
Overall inventory for the city remains elevated and hasn’t tapered off as much as it does historically in the fall. The 350 homes for sale at the end of October was the 4th highest inventory level for the month.
Download the CREB stat package for Airdrie: click here