Different property types in Calgary are recording a wide range of market conditions, as evidenced in the statistics from the first half of 2016.
The detached house market has experienced a decline of 3.4% in pricing in the past 12 months, while the apartment sector has dropped almost twice that much (5.9%). The attached market which includes townhomes, duplexes and infills is sitting at a 4.9% decrease over the past year.
The number of sales has declined modestly for detached and attached homes (3.7%) but a much larger drop has been recorded by the apartment market with a 22% drop in number of sales – keep in mind, however, this is a smaller category so it may sound worse than it is… the drop was from 399 sales to 311 in the month of June.
The city is now being divided into eight geographical areas for our statistics, as opposed to the four quadrants (NW, SW, NE and SE) that we observed in the past.
These eight areas are also observing their own market conditions. For example, prices for detached houses in the South East area (think McKenzie Towne, etc) have dropped 5.5% year-over-year while detached houses in the North area (think Panorama, etc) have only dropped 1.7%. Much of this can be attributed to the different price categories. Often the most expensive areas have dropped significantly while more affordable neighbourhoods have maintained their value.
The apartment sector in the West area (think Aspen) has dropped 7.9% in price year-over-year while most other areas of the city are between 5% and 6% drops.
One factor that can prove challenging for homesellers right now is how long it takes to sell their home. The detached market has ranged from 34 to 49 days on market over the past 18 months, with June 2016 sitting at a very reasonable 41 days.
The apartment sector has ranged from 40 to 59 days and is currently sitting at that high of 59. Keep in mind this is an average length of time so many listings are actually taking more than 90 days to sell. Our stats also don’t account for listings that terminated or expired and then came back on the market so the number is skewed down slightly.
There are still signs of life in the Calgary real estate market and in the business community, though I’m sure many of you are looking forward to ten days of fun and/or relaxation ahead 🙂 Enjoy whatever your July plans are and, as always, let me know if you want a full statistics package for your own community or quadrant!