February 2023 Calgary & Area Real Estate Stats
The Calgary and area real estate market is still a seller’s market with less than 2 months inventory available for current buyers. In fact, all of my last offers have been between $20k-$50k over the asking price. It’s really important to pay attention to local statistics as the national real estate news is just not accurate for Calgary. With that, the Calgary Real Estate Board stats for February were released saying, the level of new listings in January fell to the lowest levels seen since the late 90s. While new listings fell in nearly every price range, the pace of decline was higher for lower-priced properties. Read the full blog here
At the same time, sales activity did slow compared to the high levels reported last year but remained consistent with long-term trends. However, there has been a shift in the composition of sales as detached homes only comprised 47 per cent of all sales.
“Higher lending rates are causing many buyers to seek out lower-priced products in our market,” said CREB® Chief Economist Ann-Marie Lurie. “However, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for lower-priced homes. This is causing differing conditions in the housing market based on price range.”
With 2,451 units available in inventory, levels remain 43 per cent lower than long-term trends for the month. While overall inventory levels are slightly lower than last January, there is significant variation by price range. Homes priced under $500,000 reported year-over-year inventory declines of nearly 30 per cent while inventory levels improved for homes prices above that level.
Although conditions are not as tight as last year, lower supply levels are preventing a significant shift toward balanced conditions and prices did trend up slightly over last month breaking the seven consecutive month slide. As of January, the benchmark price reached $520,900, 5 per cent higher than last January, but still well below the May 2022 high of $546,000.
January sales eased over last year’s record high but remained consistent with long-term trends for the month. The pullback in sales did outpace the pullback in new listings causing inventory levels to improve over the exceptionally low levels reported last year. Despite the inventory gain, levels remain over 50 per cent lower than long-term trends for January
These shifts in the market have caused the months of supply to rise over last January’s 2022 record low. However, with less than two months of supply, conditions continue to remain relatively tight and supported a modest monthly price gain. In January, the benchmark price reached $480,200, nearly eight per cent higher than last January, but still below the monthly peak of $510,700 achieved in April 2022.
January sales eased over last year’s record high but remained comparable to long-term trends for the month. At the same time, new listings also slowed, but not at the same pace as sales. Inventory levels also rose from the near record lows reported last January. While improving inventories is likely welcome news to most buyers, inventory levels are still nearly 40 per cent below long-term trends.
Shifts in both sales and inventory have caused the months of supply to rise to nearly three months. This has taken some of the pressure off home prices which have seen exceptional gains over the past two years. Overall, the benchmark price in January was $488,900, over one per cent lower than last month but still seven per cent higher than January 2022 levels.
Both sales and new listings slowed in January compared to last year, preventing any significant addition to inventory compared to what was available in the market at the end of 2022. While there is more supply in the market compared to last January’s record low, with only 56 units available, this is still 61 per cent below long-term trends for the town.
The persistently tight market conditions have supported significant price growth over the past several years. While recent shifts have taken some of the pressure off the pace of price growth, prices did see some further gains this month. In January, the benchmark price reached $539,000, an increase from December and a year-over-year gain of nearly seven per cent.
Read the full release here https://www.creb.com/News/Media_Releases/2023/March/Lowest_February_inventory_since_2006/ and connect with me if you want to chat more about the Calgary market and join me on Facebook and Google to be a part of the action!