Calgary home sales in the opening week of November were down 29% y/y and below the 5 & 10 year average by -11.1% & -5.7% respectively.
Glancing at the chart below, you’ll see the outliers in November 2006, 2013 & 2014 to the upside, and 2008 – when the financial crisis was in full swing – to the downside. Overall sales this past week have been about par with 2007, 2009-2012 levels. All that to say that it was a “meh” start to the month.
There are 25.5% or 1,154 more homes on the market than one year ago. The 650 new listings month-to-date is the highest since 2008.
The sales-to-new-listing ratio for Calgary sits at a very comfortable 50.92%, but that masks the disparity among different housing categories.
To the far left of the market strength spectrum are Apartments with a buyer’s market ratio of 35.21%. Last month, Apartment prices were the hardest hit with the benchmark price falling to $288,300, nearly a -4% drop year-over-year.
Detached homes are at a 62.86% sales-to-new-listings ratio…but again, when you dig deeper into that housing category you see that market strength is dependent on the price range:
“More than half of detached sales in October occurred below $500,000,where demand relative to supply remained relatively tight –thereby potentially offsetting some of the price losses in the higher end of the segment… while some price adjustments have occurred in the higher-end detached category, this is less likely for the under-$500,000 detached segment” – CREB®
These diverging trends highlight why it’s important to look at each property on a case-by-case basis when considering how much to offer or list it for. General trends don’t always reflect what’s happening to individual homes on the market.