Calgary real estate roller coaster on the uphill

with files from Heather Ryan

Calgary real estate has seen its ups and downs as of late. A housing market that was too hot to touch a few years ago has taken a downturn, thanks to the slump oil prices. But while year-over-year comparisons paint a grey picture, things are looking brighter when you look at it from a shorter perspective.

March marked the third consecutive month that sales dropped by roughly 30 per cent in year-to-year comparisons, but Calgary real estate continues to show monthly gains after a slow start to the year, according to recent figures released by the Calgary Real Estate Board (CREB).

March sales up 30% from last month

Overall sales reached 1,747 in March, down 29.6-per-cent from March 2014, but up 30.3 per cent over February 2015 figures.

“We did see good activity in March and stronger sales as buyers have more confidence now that they can negotiate on price,” says CREB president Corinne Lyall. “Unfortunately a lot of people focus on year-to-year comparisons and the 30-per-cent drop in sales, but last year really saw a phenomenal growth in sales and low inventory, so it’s hard to compare the two."

Detached home sales dropped 29.6 per cent to 1,061 in year-to-year comparisons, but increased 30.3 per cent over February.

Similarly, attached (condo townhouse) sales hit 387 in March – down 26 per cent from March 2014, but up 32.6 per cent from February.

Again, condo apartment sales saw the largest decline in year-to-year comparisons – down 33.9 per cent from March 2014, but up 27.4 per cent from February.

New listings slow down

New listings slowed in March after two months of gains, down 5.5 pert cent to 3,136 in year-over-year comparisons.

“In January we had a huge jump in listings, but we saw that ease a little in February and again in March, so that has helped our absorption rate,” Lyall says.

Detached listings fell 9.5 per cent to 1,776, but were up 5.7 per cent from February’s 1,674.

Attached listings added in March was almost on par with year-ago levels, at 689, while condo listings added in March was 671 – equal to year-ago levels but up 11.3 per cent from the month prior.

How does housing inventory impact prices? Minimally.

The detached benchmark price in March was $513,800, a 3.9-per-cent increase over March 2014’s $494,500, but down a fraction from February’s $516,000. The benchmark price for attached homes in March was $354,800, up 5.4 per cent over $336,700 in March 2014, and a dip from February’s $354,600. Meanwhile, the price of condos in March was $293,300, up almost two per cent from March 2014’s $287,600, but down from February’s $296,000.

“Overall, we have a four-month supply of inventory, which is really healthy; it allows people the opportunity to take their time and look around rather than make a snap decision,” Lyall says. “There is definitely more choice now for buyers and more opportunity, which is a good thing.”