There are several factors influencing new listings. The market did not respond to the interest rate increases, and the end of summer as expected in September. The expectation for September was that there would be an uptick in sales after the holiday months were over. This was not the case as sales dropped across CREB by just over 7%. The sales to new listing ratios across CREB are 45.74% which is resulting in rising inventory. The pricing has continued to remain stable in most sectors but prices are expected to soften with rising inventory. Given the falling prices over the past 2 years, some sellers were waiting for market conditions to improve prior to listing their homes. More stability in the market has prompted many of those sellers to no longer delay their listing decision.
Strong gains in the 1st half of this year have put Calgary’s yr-date sales higher than last years levels. Some challenges remain with the sales easing. Not surprising is the rise in the number of listings. Inventory levels rose across all property types. The recent rise is preventing further price recovery. Sales activity has moderated over recent months. This does not come as a surprise as sales activity is expected to remain modest. Overall, sales for the year remain higher than last year.
Ultimately, prices are affected. This inventory also opens up opportunity for buyers to step up into a home that was financially unattainable.
Prices in the detached sector market remain relatively stable compared to last year. Condominium apartment prices remain 4% below 2016 levels and 12% below 2014 highs. This sector continues to struggle with price declines. Results are from excess supply as months of supply pushed above eight months.
Some may consider the recent rise in inventory a setback. It is important to note that recent movements in the market are balancing out the higher than expected gains that occurred in the 1/2 of the year.
Both the North and SE communities have reached record high inventory levels for September. Likely related to new construction and new housing projects.
Sales improved in the E, W, S and SE areas of the city.
Third-quarter year-over-year sales dropped by seven per cent to 130 units in Okotoks. This is the lowest third-quarter sales activity since 2010. The drop in overall sales activity was largely attributable to reduced demand in the detached sector. New listings increased to 224 units for the same quarter, causing inventories to increase.
Total residential sales in Airdrie were down in the third quarter by six per cent compared to last year. New listings totalled 660 units, a record amount for the third quarter. This brings the total new listings to 2,002 units so far in 2017, which is 5.44 per cent above last year. New listings growth and cooled demand has been the main cause for inventory gains, which averaged 532 units during the third quarter, 25 per cent higher than last year
For the third consecutive quarter in 2017, Cochrane posted positive year-over-year sales growth. Residential sales activity totalled 183 units during the third quarter, compared to 157 sales in the same period in 2016.
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