Warren Shouldice

Cell: 403-461-8103 |

June Real Estate Update

If you’re like most homeowners, you’ve probably found these past few weeks challenging to say the least. Although the experts say we are making progress, we’re still trying to find our footing on an uncertain road. We’re figuring out how to live and work in new ways.


In fact, when it comes to real estate, you may be wondering, “How does the selling/buying process work in times like these?” or, if you want to sell, “Is now a good time or should I wait?”


If you’re looking for answers, please reach out to me. Yes, there have been changes in how the buying/selling process works, and I’m happy to fill you in. In fact, if you have any questions or need any help that’s real estate related, feel free to contact me!


Market Update:


Housing market activity in May remained slow, but sales exceeded the lows from April, which saw less than 600 sales in Calgary.


May sales totalled 1,080 units, a 44 per cent decline from last year’s figures. “The initial shock of COVID-19 and social distancing measure is starting to ease. This is bringing some buyers and sellers back to the market. However, this market continues to remain far from normal and prices are trending down,” said CREB® chief economist Ann-Marie Lurie. “Activity has also shifted toward more affordable product, which is likely causing differing trends depending on product type and price range.”


Sales are down in all price ranges, but a greater share of sales are priced below $500,000. In the higher price ranges the drop in inventory has not been enough compared to the drop in sales. Additionally, the months of supply is far higher than the already elevated levels seen during the past five years. The shift in sales toward lower-priced product is contributing to steep average price declines in the Calgary market. Benchmark pricing, which reflects comparisons of the same type of home, has eased by over two per cent compared to last year and 0.4 per cent compared to last month. This does not come as a surprise as the market continues to struggle with more supply than demand.


COVID-19 and social distancing measures have contributed to rising unemployment rates and job losses throughout many economic sectors. This is weighing on consumer confidence and the housing market. Some of this job loss is temporary, but the energy sector remains the largest concern. Significant job loss throughout the typically higher-paid professional and technical services sector points to a longer adjustment period in the housing market, particularly in the higher end of the market.


Quick Stats:


 

May 2019

May 2020

Y/Y% change

Detached

     

Total sales

1,180

670

-43.22%

Inventory

3,931

2,922

-25.67%

Months of supply*

3.33

4.36

30.91%

Average DOM

50

55

6.84%

Benchmark price**

$484,300

$474,300

-2.06%

       

Attached

     

Total sales

422

273

-35.31%

Inventory

1,902

1,503

-20.98%

Months of supply*

4.51

5.51

22.15%

Average DOM

61

71

15.74%

Benchmark price**

$318,600

$306,500

-3.80%

       

Apartment

     

Total sales

313

137

-56.23%

Inventory

1,654

1,388

-16.08%

Months of supply*

5.28

10.13

91.72%

Average DOM

70

67

-4.77%

Benchmark price**

$248,400

$242,600

-2.33%


*Months of supply: The ratio between inventory and sales which represents the current pace of sales and how long it would take to clear existing inventory.

**Benchmark price: The monthly price of the typical home based on its attributes, providing the best measure of price trends.

 

Predicting Your Future Housing Needs

What will your housing needs be in three to five years? If you can figure that out, you can watch the market, target areas and neighbourhoods you might like to live in, and reap the benefits of planning ahead.


To begin the process, start by asking yourself the following questions:

  • What will my family look like in three to five years? Will there be a new addition (or two) to your family? Will you have kids that are grown up and about to move out? What is the possibility that an elderly relative (Mom, Dad or grandparent) will be living with you?
  • What will change regarding work and school? Will a teenager be off to college? Will you or your spouse be retired? Will someone in your household be starting a home business?
  • How will your lifestyle be different? Will you take up a hobby that you’d like to be able to reach easily (such as golf)? Do you see yourself wanting to live closer to shopping, theatre, walks in the woods, etc.? Will you eventually be traveling more often and, therefore, not be at home as much?
  • How is the neighbourhood changing? Where is it heading relative to your future needs in terms of residents, noise, sense of community, local developments, etc.? Do you see yourself wanting to live in a quieter community, or a more urban centre?
  • Will the type of home you need change? In three to five years, can you see yourself wanting a larger home? Smaller home? More bedrooms? Larger kitchen?
  • What are your dreams? Do you dream of living in a particular area or neighbourhood? Would you love to have a big backyard with a garden someday? Do you sometimes think, “It would be great to have a wooded park with walking trails just a few minutes away.”

By looking three to five years into the future, you will be able to predict your housing needs and make plans - today - to ensure you get what you want in the future.


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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
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