Calgary Housing Market July 2024: Sales Dip & Inventory Rises

Summary

The video script discusses the Calgary real estate market's response to the Bank of Canada's interest rate cut and a $1,300 price reduction. Adam Fe, a Calgary realtor, analyzes sales data, new listings, and inventory levels, noting a significant increase in inventory and a slowing market, particularly for luxury homes. He emphasizes the importance of understanding market trends by price point and property type, predicting continued price stability with potential increases. The video also touches on population growth and migration patterns affecting the housing market.

Takeaways

• 📉 The Bank of Canada has reduced its interest rate by 0.25 basis points to 4.5%, which may influence the real estate market.
• 🏠 The Calgary real estate market has seen a price reduction of $1,300, indicating a possible shift in the market dynamics.
• 📈 Despite a general slowdown, the market is not slowing down uniformly across all property types and price points.
• 📊 Sales in July were 2,300, which is a 10% decrease, while new listings are up by 11% at 3,600, indicating a growing inventory.
• 📚 The inventory has increased significantly to 4,200 homes, up by almost 20% compared to the previous year.
• 🛑 The months supply for the total residential price point is up to 75, suggesting a strong seller's market, but with a significant increase of 32% from the previous year.
• 📉 The majority of supply growth occurred for homes priced above 600,000, which has helped to shift the market away from extreme seller's market conditions.
• 🏘️ Sales have been driven by homes priced below 600,000, and the market is still favoring sellers but with a significant improvement from earlier in the year.
• 📈 The market is seeing a slowdown after an extreme spring market, with sales peaking in May and June and then declining.
• 📊 The total sales by price range show that the $300,000 price range had the most activity, closely followed by the $600,000 price range.
• 🌐 The video emphasizes the importance of breaking down market reports by community, product type, and price point for a more nuanced understanding of the market.

Q & A

What action did the Bank of Canada take regarding interest rates?

The Bank of Canada reduced its interest rate by 0.25 basis points, bringing it down to 4.5%.

How much has the Calgary real estate market seen a price reduction by?

The Calgary real estate market has seen a price reduction of $1,300.

What was the sales volume for the month of July according to the transcript?

The sales volume for the month of July was 2,300.

How did the new listings for July compare to the previous year?

New listings for July were up by 11% compared to the previous year, with 3,600 new listings.

What was the total inventory of homes left over at the end of July?

The total inventory of homes left over at the end of July was almost 4,200, which is up by almost 20% compared to the previous year.

What is the current months supply for the total residential price point?

The current months supply for the total residential price point is up to 75, indicating a seller's market, but it's up dramatically by 32% compared to July of the previous year.

What does the Calgary Real Estate Board say about the current market conditions?

The Calgary Real Estate Board states that supply levels have improved, taking some pressure off prices, and that the market is starting to see shifts with more inventory and sales to new listing ratios supporting a gain in inventory.

How did the sales in July compare to last year's record high?

July sales eased by 10% over last year's record high but were still higher than long-term trends for the month.

What is the current situation for the affordable product in Calgary according to the realtor?

The affordable product in Calgary is still in high demand, with townhouses priced around $450,000 to $500,000 selling quickly, typically within the first weekend.

What does the realtor predict for the upcoming months in terms of market activity?

The realtor predicts a possible spike in August and September, followed by a decrease going into the winter seasons, which is a common trend.

What is the current total residential benchmark price, and is it expected to remain stable?

The current total residential benchmark price is around $606,000, and it seems to have hit a small ceiling, with little fluctuation in the last few months, suggesting it might remain stable for now.