Sales activity in the new infill markets continues its decline while inventory levels start to inch upwards.
Single-family new infills posted 23 sales during the month of May, down from last month's 28 sales and also down from the 38 sales recorded at this time last year.
Single-family new infill inventory has increased slightly, to 126 active listings, from the 120 active listings recorded last month and is down from the 143 active listings recorded at this time last year.
New infill townhomes posted 6 sales during the month of May, down from last month's 7 sales and considerably down from the 16 sales recorded in May last year.
New infill townhome inventory currently sits at 23 active units for sale, up slightly from the 22 active units recorded last month and is considerably down from the 51 active units recorded at this time last year.
Despite the decline in sales activity and increased inventory, seller's market conditions persist. With prices still escalating and interest rates on the rise, we expect sales activity to continue to soften; however, it will take some time for balanced market conditions to return.
Single-family new infills posted 23 sales during the month of May, down from last month's 28 sales and also down from the 38 sales recorded at this time last year.
Single-family new infill inventory has increased slightly, to 126 active listings, from the 120 active listings recorded last month and is down from the 143 active listings recorded at this time last year.
New infill townhomes posted 6 sales during the month of May, down from last month's 7 sales and considerably down from the 16 sales recorded in May last year.
New infill townhome inventory currently sits at 23 active units for sale, up slightly from the 22 active units recorded last month and is considerably down from the 51 active units recorded at this time last year.
Despite the decline in sales activity and increased inventory, seller's market conditions persist. With prices still escalating and interest rates on the rise, we expect sales activity to continue to soften; however, it will take some time for balanced market conditions to return.
CALGARY MARKET UPDATE (CREB)
City of Calgary, June 1, 2022 - For the second month in a row, sales activity trended down after all-time record high sales in March. While activity in the market slowed down in May with 3,071 sales, levels are still slightly higher than last year’s record high and are far stronger than typical levels of activity recorded in May.
“It’s not a surprise to see sales ease from the exceptionally strong levels seen earlier in the year. Many buyers were eager to get into the market ahead of the rate gains that we are now seeing,” said CREB® Chief Economist Ann-Marie Lurie.
“While higher lending rates are weighing on sales activity, the market is still struggling with supply levels and rising prices which could also be contributing to slower sales, especially in the detached market. Nonetheless, if this shift continues, we could begin to see more balanced conditions in the market over the next several months, slowing the pace of price growth in the market.”
Slower sales were met with a decline in new listings, but a strong pullback in sales was enough to cause inventories to trend up relative to levels seen over the past few months. While inventory remains well below historical norms, the monthly gains did take off some of the pressure in the market. However, with just under two months of supply, the market continues to favour the seller.
Tight market conditions continue to contribute to further price gains in the market, but the pace of growth has eased relative to what occurred over the previous four months. Overall, the benchmark price reached $546,000 in May, over 14 per cent higher than last year’s levels.
“It’s not a surprise to see sales ease from the exceptionally strong levels seen earlier in the year. Many buyers were eager to get into the market ahead of the rate gains that we are now seeing,” said CREB® Chief Economist Ann-Marie Lurie.
“While higher lending rates are weighing on sales activity, the market is still struggling with supply levels and rising prices which could also be contributing to slower sales, especially in the detached market. Nonetheless, if this shift continues, we could begin to see more balanced conditions in the market over the next several months, slowing the pace of price growth in the market.”
Slower sales were met with a decline in new listings, but a strong pullback in sales was enough to cause inventories to trend up relative to levels seen over the past few months. While inventory remains well below historical norms, the monthly gains did take off some of the pressure in the market. However, with just under two months of supply, the market continues to favour the seller.
Tight market conditions continue to contribute to further price gains in the market, but the pace of growth has eased relative to what occurred over the previous four months. Overall, the benchmark price reached $546,000 in May, over 14 per cent higher than last year’s levels.