Developer Report – March, 2017

March 7, 2017

Market Snapshot

Two months into the year, Calgary’s real estate market seems to be experiencing a noticeable shift in momentum, with a consistent rise in optimism and a slow and steady return to more balanced numbers across all sectors. February sales totaled 1,342 units, which is still 19% below historical averages, but an improvement over the past two years, hinting that worst is behind us and the Calgary market may finally see some much needed improvement.

Throughout the month of February, our team saw a surge in the market, with strong sales and plenty of showing activity on our listings throughout most sectors. With a limited number of new listings hitting the market in the past two months, inventory levels in most market segments remain low. The lack of selection is especially apparent in new homes priced under $850,000 where demand is high and options for buyers are few and far between.

One thing we can note for sure, only two months into the year, 2017 simply feels better than last year, and we are optimistic that this positivity will persist in the coming months. We anticipate more new listings will hit the market in the coming weeks, hopefully lending more options and a greater selection of properties as we head into warmer weather and the usual Spring Rush.

Our Take – New Infill Market

As we reach the tail end of the Winter months and move past what is historically the slowest season of the year, the new infill and new townhome sectors are steadily gaining momentum with increased sales and more action across the board. We are starting to see showing activity pick up as buyers resume their home searches and we suspect a handful of new listings will hit the market as the Spring market approaches.

Month-over-month, sales in the new infill sector climbed to 21, almost doubling January’s numbers. Keeping with the trend seen throughout the past six months, a lack of new listings paired with sales activity has caused inventory levels to dip further to record low numbers. There are currently 146 new infill homes for sale, close to half of the inventory on the market exactly one year ago, leaving buyers with less to choose from, especially in entry level price points where product selection is limited.

Following in similar fashion, new townhome inventory levels sit at 52 units, almost half as many as this time in 2016. Sales activity saw modest improvement with 7 sales, all of which occurred in price points under $800k, with over half of these registering between the $500k-$600k price range.

Although builders have resumed their search for land and many now have numerous projects underway, the lack of completed new infill homes is causing a gap in the market which may result in modest price improvements if conditions persist.

We anticipate the coming months will bring continued optimism and increased activity in the new infill sectors, whereas sellers looking to capitalize will benefit from the notable lack of inventory as we approach the busiest months of the year.

CALGARY MLS STATISTICS

SOURCE: STATISTICAL INFORMATION PROVIDED BY THE CALGARY REAL ESTATE BOARD (CREB).
GEOGRAPHIC AREA: ALL PROPERTIES LOCATED WITHIN CALGARY CITY LIMITS.
BENCHMARK PRICE: PRICE OF THE TYPICAL HOME, BASED ON VALUE CONSUMERS ASSIGN TO VARIOUS ATTRIBUTES.
PROPERTY TYPES: INCLUDES BOTH SINGLE AND MULTI FAMILY HOMES.

NEW INFILL STATISTICS (SINGLE FAMILY)

REPORT NOTE: “NEW INFILLS” ARE DEFINED AS HOMES BUILT IN THE INNER-CITY THAT ARE 2015 AND NEWER
SOURCE:
STATISTICAL INFORMATION OBTAINED FROM MATRIX MLS SYSTEM.
GEOGRAPHIC AREA:
INNER-CITY COMMUNITIES WITH NEW INFILL DEVELOPMENT.
PROPERTY TYPES:
INCLUDES ONLY SINGLE FAMILY HOMES.

NEW INFILL ACTIVITY (SINGLE FAMILY)

REPORT NOTE: “NEW INFILLS” ARE DEFINED AS HOMES BUILT IN THE INNER-CITY THAT ARE 2015 AND NEWER
SOURCE:
STATISTICAL INFORMATION OBTAINED FROM MATRIX MLS SYSTEM.
GEOGRAPHIC AREA:
INNER-CITY COMMUNITIES WITH NEW INFILL DEVELOPMENT.
PROPERTY TYPES:
INCLUDES ONLY SINGLE FAMILY HOMES.

NEW INFILL TOWNHOME ACTIVITY (MULTI FAMILY)

REPORT NOTE: NEW INFILL TOWNHOMES ARE DEFINED AS CONDOMINIUMIZED MULTI-PLEX UNITS (CONVENTIONAL AND BARE LAND), WITH MINIMUM 2 STOREYS, IN THE INNER-CITY THAT ARE 2015 OR NEWER.
SOURCE: STATISTICAL INFORMATION OBTAINED FROM MATRIX MLS SYSTEM.
GEOGRAPHIC AREA: INNER-CITY COMMUNITIES WITH NEW INFILL DEVELOPMENT.
PROPERTY TYPES: INCLUDES ONLY MULTI FAMILY HOMES.

DOWNLOAD REPORT (PDF) CLICK HERE

Thomas Ferianec
Re/Max House of Real Estate