What really happened in Q1

I’m here today to break down some recent local statistics for you into bite-size nuggets. There are a lot of numbers flying around in the media about the real estate market.

Sometimes you may hear national real estate numbers that sound quite positive. These stats are being heavily influenced by strong markets in Vancouver and Toronto and are not indicative of what is happening in Calgary and all across Alberta.

Other times you may hear statistics that the market has dropped 20-40% or more! These are often isolated statistics looking at the total number of sales in a period for a specific property type compared to a previous period (which is often a busier-than-normal period).

In Calgary, we separate our statistics into distinct categories. Each of these categories are experiencing different market conditions. Below is a little look at two major categories – detached houses and apartments – and how each is faring using the recently-released statistics from the month of March.

Detached Houses:

Benchmark price is DOWN 3.6% from 2015, UP 0.7% from 2014 and UP 11% from 2013

Benchmark price is DOWN 0.4% from last month

Benchmark price is UP 6.7% from the highest levels recorded in 2007 (the last boom)

Number of sales are DOWN 7.1% from 2015, DOWN 34% from 2014 and DOWN 22% from 2013

BUT number of sales are UP 44% from last month!

Apartments:

Benchmark price is DOWN 5.2% from 2015, DOWN 1.1% from 2014 and UP 9.1% from 2013

Benchmark price is DOWN 0.9 % from last month

Benchmark price is DOWN 7.1% from the highest levels recorded in 2007 (the last boom)

Number of sales are DOWN 13.4% from 2015, DOWN 42% from 2014 and DOWN 23% from 2013

BUT number of sales are UP 50 % from last month

The silver lining in all this is that the absorption rate for ALL category types (months worth of inventory) has decreased significantly over the last two months, which is a good thing.

The lower the number, the busier the market. A balanced market is around three months worth of inventory. A seller’s market is anything below that and a buyer’s market is anything above.

The detached absorption rate is 3.42 while the apartment rate is 5.78.

While the number of sales has seen huge fluctuations (even month to month, as evidenced above), prices haven’t been affected as much, especially in the detached house category.

Please contact me for specific statistics on your own area or property type anytime!