CREB® August 2015 Statistics

August sales activity falls below long-term averages

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Calgary’s residential resale housing market recorded further easing in absorption rates in August due to weaker sales activity.

Sales in the city declined by 27 per cent to 1,643 units last month relative to the same time last year, and 12 per cent below 10-year averages.

“Persistent weakness in the energy sector weighed on sales activity this month, which once again retracted to levels well below the norm for the city,” said CREB® chief economist Ann-Marie Lurie.

The residential unadjusted sales-to-new-listings ratio eased from 67 per cent in July to 60 per cent in August, contributing to a monthly rise in inventory levels to 5,146 units. Combined with weaker sales activity, months of supply pushed up to 3.13 months.

While every price range experienced fewer sales per new listing, homes in the higher price ranges saw the most significant decline in absorption rates compared to last year, noted Lurie.

Year-to-date new listings in the $600,000-plus category increased in share of activity compared to last year. However, sales activity in this price range represented 18 per cent of all the sales last month, down from nearly 20 per cent last year.

“With more options in the higher-end of the market, sellers will need to consider their competition as well as their goals regarding a sell date,” said CREB® president Corinne Lyall. “This will influence the pricing strategy they agree upon with their real estate professional.”

Lurie added that despite challenges near the top of the market, absorption rates in the under-$500,000 detached sector remained relatively tight and is likely causing some price trend discrepancies.

Despite weaker absorption rates, benchmark prices remained relatively stable, totaling $456,300 in August. Lurie credits this steadiness to both the detached and attached sectors, which have remained more balanced relative to the apartment sector.

The apartment sector continued to struggle with increased competition from competing properties during the month, as unadjusted months of supply rose to 4.3. Increased supply is ultimately weighed on pricing, as prices declined on a year-over-year basis by 1.44 per cent in August.

Overall, the combination of price declines and higher inventory levels in some segments of the market are influencing buying patterns in Calgary, said Lyall.

“Improved selection in these segments is giving buyers the opportunity to be discerning about their purchase decisions,” she said. “They may be weighing their options between resale and new product, along with what community fits their lifestyle.”

“Although market conditions affect consumers’ real estate decisions, so do their lifestyles. People move for a number of reasons, including proximity to work and schools, along with changes in family dynamics.”

CARA July 2015 Statistics

Red Deer, Alberta – August 18, 2015 – Residential sales reported through the MLS® System of the Central Alberta REALTORS® Association numbered 509 units in July 2015. While this was a decline of 12.5 per cent from a record for the month last year, sales in July 2015 marked just the third time on record that activity has topped the 500 mark for that month.

Sales activity in all of Alberta fell 14.7 per cent from July 2014, and were running in line with the five and 10-year averages for the month.
New residential listings on the Association’s MLS® System numbered 858 units in July, down 7.9 per cent from levels in July 2014.

There were 2,955 active residential listings on the Association’s MLS® System at the end of July, down 5.4 per cent from levels at the end of July 2014.

There were 5.8 months of inventory at the end of July 2015, up slightly from 5.4 months reported at the end of July 2014 but below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The dollar value of all home sales in July 2015 was $163.1 million, falling 7.9 per cent from the record July in 2014. This was still the second best dollar volume for the month of July. The dollar value of home sales in all of Alberta declined 14.9 per cent from July 2014.

Sales of all types of properties totalled 529 units in July. This was down 13 per cent compared to July 2014. The total value of all property sales amounted to $173.3 million in July, down 10.1 per cent on a year-over-year basis.
The Central Alberta REALTORS® Association is an MLS® listing co-operative, representing more than 560 REALTORS® located in Red Deer and throughout Central Alberta. Details and photos of all Central Alberta REALTORS® Association listings can be found on the national public web sites www.carassociation.ca, www.REALTOR.ca (residential properties) and ICX.CA (commercial and investment properties).

CREB® July 2015 Statistics

Market remains balanced despite easing in absorption rates

Supply gain in apartment sector threatens to impact price

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Declines in residential housing sales activity eased in July, creating, when combined with stable inventory levels, no change to the month-over-month price.

Year-over-year sales fell by 14 per cent to 1,995 units in July, compared to a 17.8 per cent decrease the previous month. Despite the decline, sales activity during the month was consistent with the 10-year average.

While sales decline eased, so too did the decline in new listings, causing the unadjusted sales-to-new listings ratio to edge down to 67 per cent in July and months of supply to increase to 2.53 months.

“As weakness in the energy sector continues, this is trickling into several other aspects of our local economy, including our housing market,” said CREB® chief economist Ann-Marie Lurie.

Despite weaker absorption rates, market conditions remained relatively balanced and helped maintain month-over-month stability in benchmark prices, which remained unchanged from the previous month at $455,400.

“Often, the focus is on home prices. In fact, Calgary has recorded significant gains in home prices over the past several years,” said Lurie. “And despite the recent retraction, we have not seen all those previous gains eroded.”

While benchmark prices exhibited some month-over-month resilience, they still declined by 0.15 per cent annually and one per cent lower than levels recorded in January. It represents the first time since 2011 that benchmark prices have posted a year-over-year decline.

Lurie attributes most of the year-over-year decline to the apartment sector, where prices fell by 1.61 per cent to $293,300 – nearly two per cent lower than the price at the beginning of the year – due to weak demand and growing supply.

Year-to-date new listings in the apartment sector declined by 4.6 per, while sales declined by 29 per cent over the same period, resulting in inventory gains. By July, the months of supply pushed up to 3.77 months compared to three months in June.

“The relatively weak demand for apartment product, combined with rising supply, continued to place downward pressure on prices for the second month in a row,” said Lurie.

CREB® president Corinne Lyall noted Calgary’s housing market is continuing to see some nuances in supply between the different segments of the market.

“These differences are really important to understand as it relates to consumer expectations,” she said. “Some buyers expect they will get major price reductions in this market, but that’s not always the case. In some areas, supply levels are more balanced with demand and that creates price stability.”

Meanwhile, detached home prices remained steady month-over-month at $515,300. While absorption rates eased in the sector, conditions remained relatively balanced.

“Many clients are optimistic about the long-term outlook and are less concerned about short-term fluctuations in the housing market,” said Lyall.

“They’re focused on taking the time they need to make the right choices for their lifestyle. Saying that, it’s important to stay current and become educated with the market dynamics in the communities where they may be making real estate decisions.”

CARA June 2015 Statistics

Red Deer, July 20, 2015 -Residential sales reported through the MLS® System of the Central Alberta REALTORS® Association were down on a year-over-year basis in June 2015.

Home sales numbered 544 units in June, a decline of nine per cent from June 2014. That said, sales have been steadily recovering after hitting a low in January. June sales were back above the five and 10-year averages for the month. They also hit the third highest level on record for the month of June.

Sales activity in all of Alberta fell 14.3 per cent from June 2014.

New residential listings on the Association’s MLS® System numbered 991 units in June, down 2.7 per cent from levels in June 2014.

There were 2,932 active residential listings on the Association’s MLS® System at the end of June, down 5.1 per cent from levels at the end of June 2014.

There were 5.4 months of inventory at the end of June 2015, up slightly from 5.2 months reported at the end of June 2014 but below the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The dollar value of all home sales in June 2015 was $176.8 million, falling 9.2 per cent from the record June in 2014. This was still the second best dollar volume for the month of June. The dollar value of home sales in all of Alberta declined 15.1 per cent from June 2014.

Sales of all types of properties totalled 569 units in June. This was down 10.1 per cent compared to June 2014. The total value of all property sales amounted to $186.6 million in June, down 13.9 per cent on a year-over-year basis.

The Central Alberta REALTORS® Association is an MLS® listing co-operative, representing more than 560 REALTORS® located in Red Deer and throughout Central Alberta. Details and photos of all Central Alberta REALTORS® Association listings can be found on the national public web sites www.cara.ca, www.REALTOR.ca (residential properties) and ICX.CA (commercial and investment properties).

CARA May 2015 Statistics

Red Deer, June 22, 2015-Residential sales reported through the MLS® System of the Central Alberta REALTORS® Association were down on a year-over-year basis in May 2015.

Home sales numbered 506 units in May, a decline of 23.6 per cent from the all-time record May set in 2014. That said, sales have been steadily recovering after hitting a low in January. May sales were back in line with the five and 10 year averages for the month.

Sales activity in all of Alberta fell 22.3 per cent from May 2014.

New residential listings on the Association’s MLS® System numbered 1,014 units in May, down 24.8 per cent from levels in May 2014.

There were 2,842 active residential listings on the Association’s MLS® System at the end of May, down 6.1 per cent from levels at the end of May 2014.

There were 5.6 months of inventory at the end of May 2015, up from 4.6 months reported at the end of May 2014 and slightly above the long-run average for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The dollar value of all home sales in May 2015 was $167.5 million, falling 17.1 per cent from the record May in 2014. This was still the fourth best dollar volume for the month of May. The dollar value of home sales in all of Alberta declined 22.4 per cent from May 2014.

Sales of all types of properties totalled 525 units in May. This was down 23.6 per cent compared to May 2014. The total value of all property sales amounted to $176.4 million in May, down 16.7 per cent on a year-over-year basis.

The Central Alberta REALTORS® Association is an MLS® listing co-operative, representing more than 560 REALTORS® located in Red Deer and throughout Central Alberta. Details and photos of all Central Alberta REALTORS® Association listings can be found on the national public web sites www.carassociation.ca, www.REALTOR.ca (residential properties) and ICX.CA (commercial and investment properties).