June 2017 Market Update
Despite the unseasonably warm weather throughout the month of May, buyers remained firmly focused on house shopping! Continuing the trend from the last few months, our team experienced steady activity and a flurry of sales through the month of May, most notably in the single family sector.
Examining the market as a whole; year-over-year sales are up, and for the fourth consecutive month, Calgary average home prices are on the rise. This trend can be mostly attributed to another strong month experienced by the detached home sector. The positive economic climate is supporting market recovery, and improved demand is leading to more balanced conditions throughout most single family market segments. Keeping in trend with the past several months, the market continues to favour the entry-mid level price ranges, where inventory levels and months of supply are still down year over year.
With plenty of new listings hitting the market throughout the month of May, inventory levels in all market segments are currently the highest they have been all year, meaning there are plenty of good housing choices in every segment of the market!
We expect sales activity to stay strong throughout most of June right until Stampede hits, when Calgary home buyers and sellers typically take a break for a few weeks to enjoy the festivities or escape the City. One thing is for sure, if the first six months of the year are any indication of what is to come, the second half of 2017 should see continued optimism in Calgary’s housing market.
Detached Market Sector
Sales in the semi-detached sector were down slightly in May; 2.11% less than this time last year, and 0.9% lower than April 2017. Despite slightly lower sales numbers and more new listings coming available, months of supply currently sits at 2.78, which is firmly in balanced market territory. Again, the market varies somewhat in the semi-detached sector based on location and price point. Entry-level price points in popular communities are still quite low on supply, and strong demand has resulted in sellers market conditions, while higher price points are experiencing a larger supply, resulting in a more price sensitive marketplace.
New Infill Sector
In an interesting turn of events, single family new infill sales declined by over 42% compared to last month’s numbers, while inventory levels increased by almost 8%, bringing months of supply up to 6.6 months. New townhouse sales and inventories remained relatively steady through May, now sitting at 3.7 months of available supply, similar to last months figures.