June2022 Market Snapshot

For the third month in a row, there was a pullback in sales activity for detached homes. Most of the slowdown happened for homes priced below $600,000. Rising lending rates are making it harder for some buyers to qualify for financing. And some buyers are becoming hesitant about getting into the real estate market at this particular point in time. The lower number of sales  + new listing did help shift the market into more balanced conditions. There was a small improvement in inventory levels; the pullback brought months of supply up to just under 2 months. The market conditions are still tight but the upwards pressure on price was a bit lighter. The benchmark price this month fell ever so slightly compared to May, but it is still over 15% higher than last year. 

Semi-detached properties have followed pretty closely in the footsteps of detached homes. Sales slowed down a bit in June and the pushed the months of supply to almost 2 months - sounds familiar. The benchmark price slipped a smidge from May, to $581,600 but it again, it is still around 13% higher than it was compared to last year. There were price adjustments in Calgary's North, NW, NE and SE districts. Even though there was less pressure for price gains, the market for semi-detached homes is still much tighter than we normally see.

Here comes the underdog! The spotlight for sales activity shifted to townhomes for the month of June. Row sales improved & hit a new record high for the month of June. With lending rates increasing, even a few of my own clients have shifted their searches from detached or semi-detached homes and are focusing on townhomes; these properties are usually more affordable compared to the ones we talked about earlier and give buyers some more room to compete if they need to. There were more new listings this month compared to June of 2021 but it wasn't enough to offset the increased demand this month. Almost 85% of all new listings sold within the month and months of supply remain low at 1.5 months. 

A slow recovery but moving in the right direction. Although sales slowed down from record levels earlier this year, the apartment market is moving towards more balanced conditions. The improvements for this property type has tickled many condo owners to list their units so we saw an increased number of new listings. Just over 62% of these new listings sold in June and did help take some supply pressure off. This did dampen price gains but it did not completely disrupt it. The benchmark price in June hit $277,400 - almost 1% up from last month and almost 10% higher than last year. Yes, there are definitely improvements but we still still quite a way's away from the golden days in 2014. I said it was a slow recovery, didn't I?

For the last 18 months, the real estate market seems to have been on a rocket ship of its own. With more rate increases on the horizon, we'll probably see slower sales activity & some slippage in pricing this year. That being said, with renewed migration & job growth in a bunch of different sectors, it's unlikely that we see a full reversal of the price gains that we've seen so far this year. Keep your chin up!