Katelyn: What’s up guys?
Pete: The market’s pretty good. Pretty good? Yeah. Yeah, it’s tiring. Yeah. Need an nap? Hey everyone, it’s Pete and Kate with re Max Professionals, and we wanna give you a bit of a market update for Calgary in January, 2023. Stay tuned.
All right, so when we go through this market update, please keep in mind that last year in January was an extraordinary month. I mean the numbers we were seeing last year in January were. weren’t like anything we’d ever seen before. So when I talk about sales dropping off from last year’s in ordinary numbers, here’s an example, in terms of the.. So sales are actually down about 40% from last year, so that sounds crazy, but keep in mind, last year’s numbers were inordinate, and when we sell 1200 homes in a month in January, that’s actually pretty normal.
Katelyn: And when we talk about new listings, we’re even down further, 25%. So we’re about 1850 for new listing.
Pete: Yeah, and last year we burned through a lot of inventory. So if we’re. You know, 25% from that. That’s what’s actually the story now is we’re, we’re seeing a total inventory of six and a half percent less than we had last year, at the end of January of like 2,500 listings. 2451. And I’m telling you like we haven’t seen inventory that low for about 30 years. It’s been like since the early 1990s that we’ve seen inventories that low. And you know, as long as. Is there and there’s no inventory, you’re not gonna see prices come down and we haven’t seen that. But in terms of inventory coming down, what, what’s our month supply at?
Katelyn: So what it did to months of supply is it actually went up 56%, but that’s still only a two months. Two months of supply. That’s it.
Pete: Yeah. Yeah. Which is really, really low. And, and so if your sales can drop by 40% and you’re left with a two month supply, I mean, I’ve been doing this for 22 years and, and there’s been years where we thought, oh, if we could just get a two month supply, that would be amazing. And here we are sitting at a two month supply.
When we break down some of these numbers and we look at, for example, the detached market. The detached market is down 50% in sales. So sales in, in total is down 40%. The detached market is down 50% probably, or definitely the most negatively affected segment of the market.
Negatively affected by the rise in interest rates. So we still only have a two month supply of detached homes. But sales are down 50%. Prices still went up about 7%. It’s like 6.5%, 6.7% increase over January last year.
Katelyn: Yeah. For the semi-detached market we also have a two month supply. Prices did go up 6% as well, and we are down for sales about 45%.
Pete: Yeah. And the, and the apartment or not the apartment. The townhouse market has actually been really, really strong. It’s, we’ve seen the biggest price escalation is actually in the townhouse market. So prices are up over 12% in that market over January of last year, even though again we saw 31% drop in sales from a crazy inordinate number of sales we had in January of last year.
We only have a month and a half supply of townhouses. So it’s a very, very strong segment of market and that’s good. They deserve to be that because for years, boy, I tell you, that was the worst part of the market.
Katelyn: Yeah, exactly. So when we talk about the apartment segment of our market, it is up in prices about 9.7%. It’s only down 10% in sales compared to what it was last year. And we have about a two and a half month supply as well. But let’s talk about the inventory for the apartments segment as well.
Pete: Yeah, it’s interesting, isn’t it?
Katelyn: Yes, it is. It’s pretty interesting. So apartments are down 27%, but the detached market is up 27%. Which is crazy.
Pete: And it just goes to show you that like if you just read a headline in the paper, you’d, you’d get a distorted view as to what’s going. You know, especially if you read a national news, you go, real estate market’s collapsing. The reality is, boy, there’s such massive variances between market segments that, you know, if you’re thinking of selling or you’re thinking of buying, get in touch with a professional real estate agent and get their advice on what your market segment’s looking like.
And even, I mean, anyone can read the numbers, but you, you know, you wanna find a real estate agent or professional even too, that can sort of say, well, what’s it look like for the next six months or the year? None of us have a crystal ball, but you know, we can sort of see where there’s still lots of demand, but there’s little inventory and stuff like that. And we should be able to give you some direction in terms of which areas of the market are gonna outperform others. So yeah, let’s talk about the most expensive house to sell in Calgary in January. Kudos to Jeffrey Ostrosser, I hope I said your name right, Jeffrey. Cuz kudos to you.
You sold the highest priced house in January. $3 million. Holy. And and you know what I flipped through the pictures of this place. Yeah. Worth every nickel, like unbel. This house is probably one of the most beautiful houses I’ve ever seen in Calgary. Beautiful piece of land, right within the city.
It’s in Britannia. Which is an older area, but this house was built in like 2017/2018. But it’s not built in that really sterile, white kind of environment. A lot of the new McMansions are built. Beautiful, like lots of beautiful woodwork and all that stuff. Just a gorgeous place. Jeffrey did a good job of marketing that one.
What about the cheapest one?
Katelyn: So the cheapest one actually sold in Highland Park for $115,000 thanks to Tony woo.
Pete: Up in the northwest?
Katelyn: Yeah, up in the northwest.
Pete: $115,000, if you’re looking at this from Vancouver or Toronto. That’s right. She said $115,000. And you know what, like it’s a livable place. It’s no Taj Mahal, but it’s not like you have to gut it at this point either and redo it and buy all new, like it’s got all the appliances. It’s like relatively cl you can live there. It’s, it’s not, it’s livable. It’s not terrible. Yeah. Anyway, so that’s all we have for you for this month. If you want information on what your particular market looks like, by all means, please just get in touch with us.
Yes. If you want just something quickly emailed to you, we can do that. If you’re thinking of of actually getting your house in the market this year, get in touch with us sooner rather than later because the longer we have, to work with you, to get your house ready and to get you ready. The better you’re gonna do, the better your house is gonna perform in the market.
We have a, a stager, for example, her name is Tannis, who’s amazing. Amazing. And she’ll send you like a four page report of all the things that she recommends you do to your house before we list it. And when you’re all done, your house is gonna look so nice. You’re gonna want to stay, but we don’t want you to stay. We want you to move. So just an as, as an example. Like I said, the, the more time we have beforehand to get your house ready and to get you in the right place to sell your home and that kind of thing, the better. So it’s probably better to get ahold of us sooner rather than later. And even just to be able to watch the market for a month or two, we’ll set up some market watch systems for you. So that you’ll really know, like I said, if you’ve. A townhouse in Tuscany, or a bungalow in Beddington. By the time we list it, you’ll have watched that market for a month or two or three, depending on how long, how far out you wanna move. And you’ll know that market as good as anybody as, good as anybody out there.
So give us a call anytime. Our number is an email addresses. Follow on the screen after this video.
Katelyn: Don’t forget to like and subscribe.
Pete: Like, and subscribe and even make us a little comment. Let us know how you like these videos. Yes. And if you have any suggestions about how we can make them better, if there’s a number that you think we’re missing or something else that you’d like us to talk about. Let us know in the comments. We’d love to see it. All right, thanks again.
Katelyn: Awesome. Bye guys.
Supply of lower-priced homes remains low for January
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.
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.
Detached home sales saw the largest pullback despite the year-over-year rise in inventory levels. Higher lending rates are cooling demand for higher-priced homes which is supporting inventory gains. Meanwhile, a limited supply of lower-priced products is preventing stronger sales in the lower price ranges.
The variation within the market is likely causing divergent trends in pricing as prices have trended down in the higher-priced City Centre, while still reporting some modest gains in other districts of the city. Overall, the benchmark price reached $622,800 in January, slightly higher than levels reported in December, but still below the monthly high achieved in May 2022.
Sales in January slowed relative to last year’s levels but remained above levels achieved before the pandemic. At the same time, a pullback in new listings has left inventory levels below the already low levels reported last January. Like the detached sector, semi-detached homes have seen shifts where the demand remains strong for lower-priced product relative to the supply likely causing divergent trends in pricing.
In January, most districts reported a monthly benchmark price growth. However, prices did trend down in the higher-priced City Centre district causing Calgary’s semi-detached benchmark prices to ease slightly over levels seen in December 2022. Despite the monthly adjustment overall, prices remained nearly six per cent higher than levels reported in January 2022.
Row homes sales slowed over last year’s record high but remained well above long-term trends for the month. Sales would have likely been stronger if more listings came onto the market. In January, new listings dropped over the previous year and were over 20 per cent below long-term trends. The adjustments in both sales and new listings did little to change the low inventory scenario and the months of supply remained below two months in January.
The persistently tight conditions did also prevent any downward pressure on prices which posted a nearly one per cent gain over December levels. With a benchmark price of $361,400, levels are still over 12 per cent higher than last January, and only slightly lower than the $363,700 monthly high achieved in June 2022.
Sales for apartment condominiums did not see the same pace of decline as other property types in January partly due to the level of new listings coming onto the market. Nonetheless, inventory levels remained well below long-term trends for the month and have not been this low in January since 2014.
The adjustments to both sales and inventory have left this sector with a months of supply that is lower than levels seen at the start of 2022. The shift to affordable options is also impacting prices within the apartment condominium sector. In January, prices trended up from December levels driven by strong gains in the lower priced district of the North East and East. Overall, apartment condominium prices in the city reached $277,600, one per cent higher than last month and a year-over-year gain of nearly 10 per cent, narrowing the spread from the record high prices set in 2014.
REGIONAL MARKET FACTS
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.
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