Sellers continue to adjust pricing expectations

Market imbalance in Calgary's residential resale housing market continued to weigh on citywide prices in April, according to CREB®.

In its monthly housing summary released today, the board reported that, much like the previous month, year-over-year sales fell while new listings increased, resulting in inventory gains across all sectors of the market.

As a result, benchmark prices in the city declined by 0.4 per cent from last month, and 3.4 per cent from last year, to $441,000.

For the full release, click here.

Real estate profession sees little fluctuations during market volatility

Fluctuations in Calgary's housing market over the last several years have not yet significantly impacted the number of real estate professionals practicing in the industry, say officials.

"It's interesting because in down economies we actually see some additions. Professionals in other industries who have lost their jobs often choose to come into our industry instead," said CREB® president Cliff Stevenson. "It keeps everything pretty well balanced. We don't see tremendous fluctuations year over year."

Last year, CREB® reported 5,253 members who record 18,830 sales. That's in comparison with 5,188 members and 25,543 MLS® sales in 2014.

This year, CREB® is reporting 5,277 members so far, and forecasting 18,416 sales by year's end.

New home industry to impact inventory, prices

Homebuyers could be in for more good news over the next several months as industry experts predict oversupply from the new home industry will create more selection and overall price softness.

"With the number of units still under construction, we do expect inventories to continue moving higher in the next couple of months," said Richard Cho, market analyst in Calgary for Canada Mortgage and Housing Corp. (CMHC). "I think the impact that would have on the overall housing market and the resale market is more choice for buyers."

Cho added the number of units still under construction remains elevated, which will lead to the rise in inventory levels.

A guide to distinguishing average, median and benchmark prices

Sellers and potential buyers in today's residential real estate market can be understandably excused if they are confused about what's happening with housing prices.
After all, for both, price changes in the market are supremely important. Plus, CREB® gathers price information that, to the untrained eye, can tell different stories.
For example, in February, CREB® reported the benchmark price in the city for all MLS® properties that were sold was $445,000, or down 3.45 per cent from February 2015. However, the average MLS® sale price increased by 2.72 per cent to $472,529 while the median price was unchanged at $420,000.
From top to bottom, that's a difference of close to $30,000.

"It's looking at values based on criteria such as square footage, total bedrooms and bathrooms, location, property type."

So what should one look at if they are either selling a home in this tough market or hoping to buy one?
A good start would be by looking at what each price category entails, said CREB® chief economist Ann-Marie Lurie. For example, the median price looks at every sale that has occurred in the market, ranking them from lowest to highest. The median price is the midpoint of all the sales.
Lurie said the average sale price is adding up the total dollar sum of the purchases divided by the number of total sales.

Shared-equity housing and other programs are creating solutions to the city's affordable housing crisis

Affordable housing advocates say more moderate population growth this year will not be enough to break down barriers to homeownership that many Calgarians continue to face.

Calgary Homeless Foundation vice-president of strategy Kevin McNichol said the housing market still cannot keep up with demand, with historically high prices prohibiting many people from owning a home of their own.

In late December, more than 3,600 people were on the Calgary Housing Company's wait list for subsidized and affordable housing units — the largest number of Calgarians waiting for a home since March 2012.

The art of selling your home quickly

What separates a home that sits on the market for months from one that's sold in a week? Industry experts say it comes down to properly executing proven strategies and techniques.

Calgary-based real estate agent Christina Hagerty with Re/Max Realty Professionals, who has been working the industry for more than two decades, said homes that sell quickly in this market tend to have sellers who are willing to do what needs to be done quickly – even if that means cancelling poker night for a last-minute showing.

She added motivated sellers also know the market before they list – meaning they won't waste money on things such as unnecessary pre-sale renovations.

Beleaguered sector takes brunt of economic downturn

Apartment-style condominiums were the hardest hit within Calgary's resale residential housing market in 2015, with price drops and inventory gains that outpaced both attached and detached products

On an annual basis, the apartment benchmark price slide by 0.4 per cent to $292,818 by the end of November, according to CREB®. In comparison, year-to-date benchmark prices in the detached and attached sectors during the same period actually increased by 1.7 and 2.1 per cent, respectively.

Yet more telling is how apartment prices reacted during the year, as it dropped by four per cent from $298,700 in January to $287,000 in November. During this period, benchmark prices in the detached and attached sectors declined by a more modest 1.5 and one per cent, respectively.

Commercial vacancy rates represent market outlook

Nearly one out of five floors in the office towers that make up Calgary's famous skyline now sit empty, according to CBRE, which anticipates vacancy rates to increase further in 2016.

"Oil and gas companies on every level – from junior start-up to intermediate to major companies – everyone has gone through some form of layoff and therefore and have excess space," said Greg Kwong, managing director at the commercial real estate services firm.

Calgary's downtown office market ended 2015 with vacancy rates topping 17.4 per cent – nearly double from 9.8 per cent in 2014, according to CBRE's 2016 Commercial Real Estate Market Outlook.

The Calgary real estate community mourned the loss of Calgary MLA Manmeet Bhullar Tuesday.

"The Calgary Real Estate Board (CREB®) is very saddened by the sudden passing of MLA Manmeet Bhullar," the member organization said in a posting on its website. "Mr. Bhullar was a great friend to Alberta REALTORS® and a strong advocate for the average Albertan. During his time as Minister of Service Alberta, he took an important leadership role in initiating reforms to the Condominium Property Amendment Act for the betterment of the organized real estate industry and the home-buying public.

"Mr. Bhullar will remembered for his humour, passion, intellect and, above all, his dedication to public service. He will be greatly missed by all those who had the privilege of meeting and working with him. CREB® extends its condolences to Mr. Bhullar's family, friends and colleagues."