Housing market conditions continue to follow similar trends to last year, with gains in sales. At the same time, there have been further reductions in new listings, inventory and more declines in prices. January sales activity was 863 units, nearly eight per cent higher than last year’s levels. While sales remained well below January activity recorded before 2014, they remain consistent with activity recorded over the past five years. “A persistent slowdown in the energy sector has resulted in a reset in many aspects of our economy. This includes the housing market,” said CREB® chief economist Ann-Marie Lurie. “We continue to see the slow adjustment to more balanced conditions, but it will take time before that starts to translate into price stability.” Citywide unadjusted benchmark prices were $417,100 in January. This is slightly lower than the previous month and nearly one per cent lower than last year’s levels. Benchmark prices eased, but there were some modest improvements in both the average and median prices. This is likely a reflection of some changes in the distribution of sales.
Detached
• New listings declined by nearly 11 per cent due to pullbacks in all areas except the City Centre and the North districts. Combined with adjustments in sales, this caused inventories to ease by 15 per cent citywide.
• Reductions in supply and gains in sales supported reductions in the months of supply from nearly six months last year to just under five months this January.
• Detached benchmark prices eased by nearly one per cent compared to last year. However, the only two areas to record notable year-over-year declines were the City Centre and West, with price declines exceeding three per cent.
Apartment
• Improving sales were met with gains in new listings, causing inventories to increase by 12 per cent compared to last year.
• The gain in inventories prevented any significant adjustment in the months of supply, which remained elevated at nine months.
• The persistent oversupply continued to weigh on benchmark prices, which eased compared to last month and declined by two per cent compared to last year.
Attached
• Despite slower sales in the South and South east district, city-wide attached sales improved by four per cent. At the same time new listings eased by nearly 18 per cent, causing inventories to decline by ten per cent.
• Improving sales and a drop in inventory helped the months of supply to dip below seven months, a significant improvement compared to last year’s level of nearly eight months.
• While this segment is trending toward more balanced conditions, persistent oversupply continues to weigh on prices, which trended down over the previous month and eased by over one per cent compared to last year’s levels.
Quick Stats
|
Jan. 2019 |
Jan. 2020 |
Y/Y% change |
|
|
Detached |
|||
|
Total sales |
486 |
517 |
6.38% |
|
Inventory |
2,844 |
2,411 |
-15.23% |
|
Months of supply* |
5.85 |
4.66 |
-20.31% |
|
Average DOM |
67 |
61 |
-8.18% |
|
Benchmark price** |
$482,000 |
$479,600 |
-0.50% |
|
Attached |
|||
|
Total sales |
191 |
199 |
4.19% |
|
Inventory |
1,474 |
1,320 |
-10.45% |
|
Months of supply* |
7.72 |
6.63 |
-14.05% |
|
Average DOM |
77 |
76 |
-1.98% |
|
Benchmark price** |
$313,500 |
$309,600 |
-1.24% |
|
Apartment |
|||
|
Total sales |
124 |
147 |
18.55% |
|
Inventory |
1,178 |
1,323 |
12.31% |
|
Months of supply* |
9.50 |
9.00 |
-5.26% |
|
Average DOM |
81 |
77 |
-4.37% |
|
Benchmark price** |
$251,100 |
$245,900 |
-2.07% |
*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.
Are You Ready to Buy Up?
First, make a list of all the practical reasons why it might be time to move up. Those reasons might include features such as: more bedrooms; proximity to work and school; a larger backyard with trees; nearby parks and walking paths; and, better access to things you enjoy.
Next, make a list of the emotional reasons for making such a move. Those reasons might include memorable get-togethers with friends on a more spacious deck; an easier and less stressful commute to work; more family time with the kids; and, enjoyable Saturday golf at a nearby course.
Finally, take a financial snapshot to determine if you can afford to move up. You’ll need to get a good idea of what your current property will sell for in today’s market, the average price of homes in your desired neighbourhood, and how much mortgage you can afford.
Once you have all of that down on paper, you’ll have a clear picture of your readiness. If the practical and emotional reasons for buying up are compelling, and you can afford to make the move, then, you have your answer.
By the way, if you need help in making this determination - especially figuring out what your home will likely sell for, call today.
