The listing absorption rate in Calgary has dropped significantly from last month with more buyers purchasing and the amount of listing inventory being reduced. This is could be a sign of the start to recovery in our market place. If the trend continues with rising oil prices and continued strength in our dollar we could see recovery to the Calgary Real Estate market. The absorption rate is a very good indicator of market strength, it will be important to keep a close eye on it in the coming months.
The average home price in both detached single family homes and attached increased month over month and year over year respectively. Condominiums continued to see a decline year over year but had an enormous rebound in average sold price from last month pushing close to a 10% recovery! It will be interesting to see if this trend continues into next month.
The average sold price for all inventory across the Calgary market has seen the largest month over month increase of 3.32%. This represents the largest one month increase in average sale price since 2014! The bottom of the Calgary market, may have been last month………
The year over year trend on our average sold price is down going into 2016. This may change as the year progresses if we continue to see the above noted trends continue (higher absorption rates, lower levels of inventory, and greater amount of sales)
Renewed faith in the market has many sellers listing their properties this month in hopes of capitalizing on a market that is seeing a little movement compared to months past. The sales have climbed a whopping 47% over January but still down close to 7% over last year.
Looking at the listing absorption rate over the last 12 months we can see the spring trend from last year was pushing us into the 10 year average and into a more neutral market. Once summer hit, we saw a sharp decline in the absorption pushing us into a deep sellers market for 7+ months. February is the first month we’ve seen a sign of recovery since June.
The majority of the sales in Calgary landed in the $300,000 – $500,000 range – This accounted for more than 50% of the sales in Calgary to date. The Million dollar+ range is still very slow only accounting for 3.3% of all the sales.