Calgary Market Update

Dated: 11/06/2018

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The story of October continues to be the over supply of inventory which is causing it to be a buyers market across the board. This is a result of new inventory coming onto the market maintaining the pace that is equivalent to the 10 year average, where the total sales continue to be well below the 10 year average. This over supply is having downward pressure on prices. Those who need to sell should price aggressively. Every market needs to be examined as an individual micro market within the macro market, and some notable numbers in the Calgary market, is that the YTD sales numbers in the $800,000+ condo market are out pacing last 4 years sales numbers in the same price range.  This is a sign of consumer confidence, and a great example as to why it is imperative that every client knows the market they are operating in.

 
Typically, the majority of the buyers within the current market also have a home to sell in order to make a move.  There are a few factors that could have a positive impact on the market, and obviously the main one is migration.  Until there is a larger trend of migration into Calgary, we won't see significant improvements in the number of sales. Another factor that could come into play that would have a positive impact on the move up market is if tenants start making the move into home ownership. If the rental market continues to improve, as it has over 2018, then it will become more competitive making home ownership a more appealing option for some.  A third factor to be aware of is the rising interest rates, as this has had an impact on the affordability for buyers entering the market place. The interest rates could be an interesting trend to watch as buyers adapt to "the new normal", and what they can afford.  If the starter home and condo markets in the lower price points improve, that will in turn help the entire property ladder.   Across the Province we are seeing slight growth in migration, employment and weekly earnings. The unemployment rate has also seen slight decreases, and every bit helps.  

 

With the Winter months quickly approaching we expect to see inventory levels dropping and being that our market is very seasonal, the sales will likely coincide with this.

 

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John Kwong

As a veteran realtor with CIR Realty and member of Leading Real Estate Companies of the World™, my goal is to ensure that you have the best real estate experience possible. For those looking to sell....

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