Written by Alan Kelly, Bōde’s Chief Economist
Yahoo! Summer is here! In Calgary, home sales were still up in June compared to previous years. Although there has been a slow down compared to the last few months, it’s still a great time for those thinking of selling as data shows sales and prices are still significantly up compared to the average of the last 4 years.
When you are thinking of buying or selling your home in Calgary, it is important to understand what is happening in the housing market. Obviously, there are many important factors to consider (what kind of home you have, what community etc.), so it’s important to look specifically at what the market is doing in your local area.
Bōde makes buying and selling your home a streamlined process offering significant time and cost savings along the way. We are also here to make sure you have the information you need to make the decisions that are right for YOU!
What’s happening in the Calgary real estate market as of July 2022?
Let’s start with a Macroeconomics view
To understand what’s happening in the real estate market you have to look at supply and demand.
The best proxies for supply and demand are:
Supply
- New supply: New Listings (i.e. the number of homes recently listed for sale)
- Total supply: Inventory (i.e. the total number of homes listed for sale)
Demand
- Sales (i.e. the number of homes recently sold)
Supply & Demand
- Months of Supply (i.e. the number of months it would take to sell all current inventory at the current rate of sale)
These metrics are the best indicators of the health of the real estate market. Let’s look at what they show us.
Calgary continues to see demand outpace new supply in the aftermath of the COVID-19 outbreak
New listings in June were up 12% while sales were up 36% vs. the average of the previous 4 years. Sales continue the strong trend they’ve been on since July 2020, however they are slowing in recent months.
The total number of homes for sale is down 28% compared to the average of the previous 4 years. Inventory levels continue to stay low compared to historical norms.
The combination of low supply and high demand has kept ‘months of supply’ very low at just 1.9 months which is down 50% vs the previous 4 years. This continues to be one of the lowest levels ever seen for Calgary, but it is climbing from previous months.
Low inventory & fewer months of supply makes conditions more favourable for sellers, while more inventory and higher months of supply is more favourable for buyers.
Overall, Calgary home prices are down 0.4% over last month and up 13.3% over June last year.
What does this mean for sellers?
Right now supply is still very low compared to previous years, and demand is high which means it is a great time to sell your home. Sellers who price their home well will be able to sell quickly.
However, your specific property value will be determined by market forces both within your community and against similar active listings. To find out what supply and demand look like for your specific community, click here.
What does this mean for buyers?
There are currently far fewer homes for sale than there have been in previous years. This means active buyers need to move fast to beat other buyers to available listings.
One way you can move faster is by booking viewings directly through Bōde, so you don’t have to wait for a realtor to schedule your viewings or draft your offer – do it yourself on Bōde.
Market conditions vary substantially by property type, community and price range
Above, we’ve looked at the overall markets for Calgary, but different segments are performing very differently. Let’s look at a few examples.
In June, sales of detached homes were up 14% vs the previous 4 years.
As a result, the overall supply of detached homes is down 31% compared to previous years.
This has led months of supply to be down 42%, which means it continues to be one of the best times in years to be selling a detached home, and one of the toughest times to be buying, as there’s significantly less inventory than normal to choose from.
These dynamics led prices upwards quickly in 2021, putting prices above their previous record levels from 2014. Detached home prices are down 0.2% over last month and up 15.6% over June last year.
The apartment market improved significantly in 2021 relative to a very difficult 2020. Sales were incredibly strong for June 2022 (up 89% vs the average of the last 4 years).
After more than a year of strong sales, the overall inventory (supply) of apartments has finally fallen below historical norms. There are now 16% fewer apartments for sale than typical for this time of year. This will help sellers of apartments who have been finding it harder to sell for the past 2 years (compared to owners of detached or attached homes).
Apartment prices were increasing in the first half of 2021 after a steady downward trend since early 2015. Apartment prices are up 0.8% over last month and up 9.8% over June last year.
Attached homes (i.e. semi-detached or row homes) saw 16% more listings in June vs previous years. Sales were very strong at +64% compared to the last 4 years.
Total inventory has been incredibly low in recent months (-33% vs previous 4 years).
Prices for attached homes have been improving since July 2020 and are back to the price levels of 2018. Prices are down 0.2% over last month and up 14.4% over June last year.
What really matters is what’s happening in your specific local property market. There are some communities and price bands and property types where homes are performing better/worse than market average.
It’s critical to understand the dynamics in your local property market
To understand your local property market you need to look at your local data. Head over to Bōde’s new and improved Market Data dashboard, the only place where you can see all the data yourself, including being able to filter on community, property type, and price range to see exactly what’s happening where you live.
You can also see the sold price of any home that has sold in the last 11 years using Bode’s Sold Data page.
If you’re thinking about selling, take a look at how Bōde helps sellers sell for 1.3% higher prices while paying 50% less commission.
Why Bōde?
Want to Buy or Sell Your Home Without an Agent?
Welcome to Bōde
Bōde has created a marketplace to allow you to get transparent home data, set your price, and list your home on MLS (and 30+ more sites). We will advertise your home and walk you through the whole sale process for 1%, only when the home sells.
Looking to buy? Bōde allows users to purchase any home listed on MLS in Alberta – at completely no charge.
With your free Bōde account, you don’t need an agent – you are completely in charge of your home sale or purchase and get to keep more of the money you invested in your home!
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