Groundhog did NOT see his shadow so apparently we are going to have an early spring... I don't know about the weather but in real estate... the spring market is here! Buyers & sellers are getting back in the real estate saddle. New listings and sales picked up in the month of February. New listings trended up compared to the previous month but inventory levels are being outpaced by improved sales activity. There were 1,740 sales and 2,389 new listings in the market this month so it has been hard to move into balance market territory. Inventory levels are the lowest we've seen since 2006 and the undersupply has been pushing prices upward across the city. Let's see how each property type turned out in February.
DETACHED
Both sales & supply levels trended up this month compared to January but levels are still among the lowest we've seen in the month of February. Months of supply falls below 2 months - tightening market conditions pushed price growth this month. Benchmark price came up to $635,900, about 2% higher than the previous month but market movement reported huge Y/Y declines from last year's peak. Lower priced detached properties are still in a strong seller's market but we are seeing the market shift towards balance conditions for properties priced above $700,000.
SEMI-DETACHED
Semi-detached sector often rhymes with detached homes. As we mentioned above, this property type saw seasonal monthly gains in February but sales & new listings are still quite a way from last year's record high. Listings are coming to the market and supply has improved compared to the last few months, but levels are still among the lowest reported in February. The seller's market persists! Typical for this time of year, sales improved by 26% on a monthly basis. Prices came down quite a ways from the peak in May 2022 but the consistently low inventory levels pushed the benchmark price up almost 2% compared to last month.
ROWS & TOWNS
The scale continues to tip towards multi-family property types. Townhomes have been in the spotlight as buyers shift their focus towards more affordable real estate options. The market conditions for this sector are extremely tight - February showed only 1 month of supply, and a sales-to-new-listings ratio of over 87%. Sales are outpacing the rate of properties coming to market, pushing the benchmark price 2% higher than January, and 9% higher than February 2022. Unlike the other two property types that we've mentioned, townhome price growth reach a new high this month.
APARTMENTS
Buyers shifting toward affordability, positive net migration, and increasing investor interest has been driving sales up for apartment condominiums. Sales are strong compared to the number of new listings coming to market. In February, inventory remains low, with less than 2 months of supply. With 876 units for sale this month, inventory levels are relatively low compared to what we've been seeing in the last 8 years. Tightening market conditions for this sector pushed the price growth 3% higher than last month, and 11% higher than last year, but we are still almost 7% lower than the peak in 2014.
Calgary's real estate market is seasonal and goes through its peaks & troughs throughout the year. With two months of the year already behind us, buyers searching for lower price points continue to face supply challenges. It is a great time for sellers to list their properties on the market in the coming weeks. If your home is priced right, there is a high chance that there will be a buyer (or two, or three) that will want to write an offer to your home. Call your neighbourhood realtor to get a property valuation and work out an effective marketing strategy that suits your timeline!
Source: creb.com
