The stats are in for February from The Calgary Real Estate Board, and at first glance the numbers look very good! This month saw a double-digit gain in sales, but last February was one of the slowest levels of activity since the late ’90s. With the extra day this February, monthly sales totaled 1,197 units. A combination of these two factors resulted in a 23 per cent improvement over last year, but sales remain well below longer-term trends and consistent with the lower levels reported over the past five years.
“However, this should not diminish the fact that conditions are still improving,” said CREB® chief economist Ann-Marie Lurie. “Calgary is continuing to see slow reductions in the amount of oversupply in the market, from modest changes in demand and reductions in supply. This needs to occur before we can see more stability in prices.”
The overall unadjusted benchmark price was $416,900 in February. This is similar to last month, but nearly one per cent below last year’s levels. Overall, prices remain nearly 11 per cent below the monthly high recorded in 2014.
HOUSING MARKET FACTS
- After the first two months of the year, detached sales improved by nearly 12 per cent.
- Improving sales and easing new listings helped reduce inventory levels and reduced months of supply to just below four months in February.
- The benchmark price continued to trend down this month for detached homes, but the pace of decline is easing.
- For the second month in a row, improving sales were met with gains in new listings. This is causing inventory gains.
- Sales levels were high enough to cause the months of supply to ease, but the persistent oversupply in the market continues to weigh on prices.
- February benchmark prices eased compared to the previous month and is over two per cent lower than last year’s levels.
- After the first two months of the year, rising attached sales and easing new listings caused inventories to decline.
- February months of supply is now below five months, an improvement compared to the past two years.
- Conditions continue to favour the buyer, but improvements have helped reduce the downward pressure on prices.
REGIONAL MARKET FACTS
Airdrie – After the first two months of the year rising sales were met with gains in new listings. Months of supply have still eased over last year’s levels, but not enough to cause a significant change in price movements. After the first two months of the year, the benchmark price has remained relatively stable compared to last year.
Cochrane – Trends in the town remain generally consistent with regional trends. Improving sales were met with some reductions in listings, inventory and the amount of oversupply in the market. The market is showing signs of improvement, but prices continue to remain over two per cent lower than last year.
Okotoks – Improving sales in the town were strong enough to offset recent gains in new listings, causing further reductions in inventories and the months of supply. The elevated levels of supply compared to sales continue to cause prices to trend down. However, at a benchmark price of $409,150 so far this year, prices are just above levels recorded over the first two months of 2019.
If you would like more information on this report, or if you have questions about Real Estate in the Calgary area, please call me today!