Deceleration is different than depreciation

Dated: June 18 2022

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The complexity of the market continues, and it is vital that clients are educated to the complex and dynamic nature of the market.
 
Alberta Report
As we move past the peak of the market for sales activity, the shift can feel notable and cause concern if not being properly monitored. One of the biggest things to take note is that markets at any given time, are experiencing one of three variables, appreciation, depreciation or deceleration. The first two are self explanatory, but the third is when markets are still rising but at a slower pace.
 
Taking a look at the week over week showing activity across the Province, it has begun to taper off from the recent uptick in early June. This has led to a slower volume of sales as the first two weeks of June sales activity is down -10.5% compared the the same time period last year. Even with this slow down, the sales year to date across Alberta are ahead of last year by 3.2% so it continues to be one of the strongest years in Provincial history.
Provincial Showing Time Results
CIR Report
The showings at CIR Realty's listings are also experiencing the seasonal slow down. The largest drop in showings is in the $400,000 - $600,000 price range, but that is also still where the majority of showing activity is occuring. Alternative to what is happening Provincially with a slower first two weeks of June sales, CIR's sales numbers are up 17% compared to the same time last year!  Our year to date sales are also outpacing the Provincial numbers as we are currently trending 28% higher year over year in year to date sales.

CIR Realty Showing Time Results

Summary
While the markets transition into the summer seasonal sales, it is important to understand that a Deceleration is different from Depreciation. The sales have slowed across all sectors but the sale to list price ratio had a modest uptick to 99.4% sale to list price ratio, the average days on market remain constant at 40 days, and the months of inventory show a balanced market. As deceleration occurs, demand will remain but competition should lessen which means pricing remains incredibly important to entice buyers to take action.
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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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