Pete: Hey everyone, it’s Pete de Jong here with Remax. As you can see today, I don’t have Kate with me. She’s on holidays again, which is what she does.
“Kate”: Hey Pete. Hey, sorry I’m late.
Pete: She’s back. Sorry, I didn’t realize she back. Grab a seat. We are just starting the monthly market update.
This is the monthly market update, by the way, for for June of 2023. So stand by and we’ll get you all the details.
Kind of thing. You’re supposed to do that part.
“Kate”: Oh, sorry. Just not feeling like myself today.
Pete: So, Kate you were on holidays again.
Pete: You really changed over your holidays.
“Kate”: Oh, don’t mind me. I just, I’m a little sunburnt.
Pete: As usual
“Kate”: just went a little crazy. So I’m, you know, I need to recover a little.
Pete: Well, I didn’t think you were back till tomorrow, so I’m glad you got back here early.
Pete: I’m not, I’m not sure you’re Kate. She doesn’t drink coffee Anyways. So everyone, here’s what’s going on in the market. Kate, why don’t you tell us what’s going on with sales in terms of number of sales versus last year?
“Kate”: Right. So some homes were sold.
“Kate”: There were sales.
Pete: Well, I usually expect more from you. There’s usually some good insight coming from Kate, but
Pete: But not this time. Here’s the, here’s the reality. Sales were, were up considerably from last year. Sales were up almost 11% versus of June of last year. At the same time, we saw inventory, or at least new listings drop by about 3%. So inventory itself is down by 36% from last year. So this is what you’re seeing in the market. This is the craziness. We’re seeing the number of sales up by 11%, so demand is up by 11% and supply is down by 36%. When you keep hearing about there being a shortage of inventory in the market. That’s the number, like that’s pretty incredible.
Months of supply is down 42% from June of last year. So that’s a lot of supply that we’re missing compared to last year. And don’t forget, last year we were saying that we got a shortage of supply. So this is this problem continues to compound and get worse and worse for now. At some point it’s gotta hit a wall, things have to change, but that’s what’s going on now.
So in terms of pricing, prices of course are up across the board. I think in general we’re getting close to across the board we’re up about how much percent Calgary real estate board wise?
“Kate”: A substantial percent for sure.
Pete: A substantial percent… You. You’re not the Kate that I remember.
“Kate”: Well, you’re not the Pete that I remember cuz I don’t remember you just having a mustache.
Pete: Oh yeah. So, right. Well this is…
“Kate”: You know, making comments about me. I took a vacation, so just leave alone.
Pete: Well, you’re also alone a foot taller than you were.
“Kate”: I’m just sitting up straight. Okay, Pete.
Pete: Okay. Alright, fine, fine. So when I say the sales prices are up about 10%, it’s really geared towards apartment, condos and townhouses and that kind of thing.
So in fact so detached houses are up in terms of price, about 6.1%. Semi-detached are up about 6%. Row houses are up about just over 11% and apartments are up almost 12%. So that’s where the market has been and I’m happy to say that’s what I was saying a few months ago was gonna happen.
So for those of you that invested the way I recommended, Or bought even the way I recommended. You’ve done well and I expect that to continue yet, by the way, there’s still, our department prices are still really, really low.
We’re doing a market update.
Pete: This is not about your nails,
“Kate”: Can I live?
Pete: Yeah, so, so that’s what’s going on in terms of.
You know, I, I thought I remember Kate being a lot nicer.
“Kate”: Oh, that’s nice.
Pete: Yeah. She, in terms of areas that are areas in terms of how they’re performing, again, it’s the southeast, like the, the east part of Calgary that’s north of the part that we normally consider Southeast. So I’m talking areas like forest lawn.
And Dover and those kind of areas, they’re up over 15% in in price. So they’re up quite a bit. The areas that still has room for improvement of course is, is the city center. It’s only up 1%. So that area has lots of room to to grow. And again, that’s why what?
“Kate”: This is, it’s nothing. It’s fine. It’s just the absolute most boring thing I’ve ever had to sit through.
Pete: Well, I know you’re a famous actress and you’re usually like in horror movies and shoot ’em ups and stuff, but I needed someone.
“Kate”: What do you mean?
Pete: I needed someone to fill in for Kate, so I just prefer you’d acted a little bit like Kate.
“Kate”: So, so, so are they gonna know?
Pete: They’re not gonna know who you really are. No, don’t worry. You’re, you’re covered up Fine. Yeah, just, I just wish you were so, I, but I’m, I wish you could act like Kate cuz Kate’s actually really,
“Kate”: How does, how does Kate act?
Pete: She’s really nice. And she’s really well informed with respect to the Calgary estate market.
“Kate”: You’re just gonna have to whisper the answers to me in between.
“Kate”: I have no idea what, what is real estate? I’ll be more like Kate.
Pete: That’s better.
Anyway, so that’s what’s going on in a real brief synopsis of what’s going on in the market. Hopefully next year, we’ll, or next month, we’ll have some more information for you cuz Kate will be with us and Kate actually knows what she’s talking about.
In the meantime, that’s what’s going on. If you wanna know what’s going on in your particular market, again, always get in touch with me because as we can see, With East Calgary up 15% city center, only up 1%, apartments up to 12%, detached only up 6%. Different markets are doing different things and even in different neighborhoods, we’re seeing pretty big variances in terms of what what the market is doing.
So if you wanna know what your place is worth, or what your immediate market is doing, by all means get in touch with me or with Kate. You can…
Pete: You can reach me at 403-818-7310, or you can correspond me on the internet at petedejong.ca. Thanks so much. We’ll see you next month.
“Kate”: Bye guys!
Another record-high month for Calgary
The housing market in Calgary witnessed a surge in apartment condominium sales, setting a new total residential record with 3,146 sales achieved in June. Although year-to-date sales are currently 23 percent lower than last year, they remain significantly higher than pre-pandemic levels.
Notably, there has been a positive trend in new listings, providing relief and a monthly increase in inventory levels. However, despite these improvements, the inventory for June stood at 3,458 units, marking a decline of over 36 percent from last year and reaching the lowest levels for June in nearly two decades.
“The demand for housing remains robust, bolstered by a healthy labour market and increased migration levels, which helps offset the impact of higher lending rates,” said CREB® Chief Economist Ann-Marie Lurie. “Although we have seen some recent improvements in new listings, particularly for apartment condominiums, it is not enough to cause any substantial change from the low inventory situation in our city. While new home starts are on the rise, it will take time to observe their impact on supply.”
With a supply of just over one month, the current market conditions continue to favour sellers, placing upward pressure on home prices. In June, the total residential benchmark price reached $564,700, representing a monthly unadjusted gain of one percent and four percent higher than last year’s levels.
A monthly gain in new listings supported a monthly increase in inventory levels. However, with only 1,651 units available in June, levels hit a new record low for the month. Inventories declined across most price ranges, but the steepest declines occurred in homes priced below $600,000. Of all the inventory in June, only 24 per cent was priced below $600,000, a significant drop from last year, where that market segment represented 45 per cent of the supply.
Limited inventory, especially in the lower price ranges, ensured that the market continued to favour the seller, driving further gains in home prices. As of June, the benchmark price reached $685,100, an unadjusted monthly gain of nearly two per cent and a year-over-year increase of six per cent. Year-over-year gains were the highest in the most affordable North East and East districts.
New listings in June improved, helping support modest monthly gains in inventory levels. However, with 268 units in inventory and 240 sales, the months of supply remained exceptionally tight at just over one month. The persistently tight market conditions have contributed to further price gains for this property type. As of June, the benchmark price reached $613,100, over two per cent higher than last month and nearly six per cent higher than levels reported in the previous year at this time.
Persistently tight conditions across all districts supported price growth. Year-over-year price growth ranged from a low of 4.5 per cent in the city centre to a high of 17 per cent in the East district.
Both sales and new listings trended up over the levels reported last month. Still, with a sales-to-new-listings ratio of 86 per cent and months of inventory below one month, conditions continued to favour the seller placing upward pressure on home prices.
In June, the benchmark price reached $400,000, over two per cent higher than last month and over 11 per cent higher than last year. Prices improved across all districts in the city, with the most significant monthly gains occurring in the East, North East and South districts. These districts have also reported year-over-year price gains of nearly 20 per cent.
Sales in June reached 857 units, 48 per cent higher than last year. Over the past three months, sales growth was enough to cause year-to-date sales to rise by 11 per cent over last year. The gain in sales was possible thanks to improving new listings. However, persistently strong demand for affordable product has prevented inventories from improving. In June, inventory levels reached 1,116 units, the lowest level for the month reported since June 2013.
Persistently tight conditions contributed to the sixth consecutive month where prices rose. As of June, the benchmark price reached $303,200, nearly two per cent higher than last month and 12 per cent higher than last year’s levels. While unadjusted prices have hit a new record high, prices remain below the peak in the City Centre, North East and East districts.
REGIONAL MARKET FACTS
A pullback in new listings contributed to slower sales activity this month. With 245 new listings and 221 sales, the sales-to-new listings ratio remained elevated at 90 per cent. This also prevented any significant shift in the inventory situation, keeping the months of supply below one month.
As market conditions continue favouring the seller, Airdrie reports further gains in home prices. As of June, the unadjusted benchmark price reached $511,100, representing a new record high for the city. Prices have risen across all property types, with the largest gains occurring in the row and apartment condominium sectors.
Sales activity in June eased, contributing to the year-to-date decline of 30 per cent. While the decline seems significant, levels are still far higher than any sales level reported before the pandemic. Like other areas, Cochrane is struggling with low inventory levels as significant declines in new listings limit consumers’ choices.
Persistently tight market conditions have contributed to further gains in home prices. As of June, the unadjusted benchmark price reached $526,500, nearly two per cent higher than last month’s and last year’s levels. This also reflects a new record high price for the town.
With 87 sales and 84 new listings, the sales to new listings ratio once again pushed above 100 per cent. This caused further inventory declines, and the months of supply dropped to 0.7 months, the lowest level ever reported for June.
The persistently tight conditions caused prices to rise again in June. The unadjusted benchmark price reached a record high of $585,300, reflecting a two per gain over last month and six per cent higher than last year.
Click here to view the full City of Calgary monthly stats package.
Click here to view the full Calgary region monthly stats package.