October Real Estate Market
Another month has come and gone with only 2 left in the year…..can’t believe 2016 isn’t that far off.
In looking at some of the numbers, so far this month, there were 796 sales in the single family detached sector, compared with 905 in the previous month. In comparing these numbers to last year where there were 1,177 sales in October and 1,224 sales in September 2014. This definitely represents a shift in the number of sales.
What’s happening in the apartment condo sector? There were 224 sales this month and 259 sales in September – more or less on track month over month. What happened this time last year? There were 360 sales in October 2014 and 435 in September 2014. Roughly a 37.8% shift in 2015/2014 sales for the month. Mind you so much more needs to be factored in like number of listings, days on market etc.
I always find the daily stats interesting to look at – on Thursday October 29, there were 21 single family detached homes sold, 39 new listings added and 91 pending sales. On the same date, in the apartment condominium sector there were 8 sales, 17 new listings and 19 pending sales.
Pending sales are properties that are conditionally sold. They could turn into full sales or not have conditions removed and the property goes back on the market.
So far this year there have been a total of 10,114 single family home sales and 2,869 apartment condos.
Are you interested in more market trivia for the month? As of October 29, the most expensive condominium apartment sale was $3,375,000 in Eau Claire but the most active segment was the $300,000 - $400,000 range. $2,500,000 was the highest priced sale so far in the single family segment. 460 of the sales have taken place in the under $500,000 price point and 315 in the $500,000 to under $1,000,000 group. If you’re doing the math, that leaves us with 21 sales over $1,000,000.
What does all this mean? The numbers are the numbers and they’re an indicator of how robust the market is but as is always important, if you’re selling a property, you want to look at your competition in the community and other influencing communities to come up with a selling game plan and price the property accordingly. There are so many other factors that come into play though – like days on market, how quickly you need to sell your property, why you’re selling etc. So whether it’s a seller’s market, buyer’s market or balanced market the same criteria has to be factored in and your property positioned accordingly for the market that it’s in.
There’s no doubt we are experiencing an economic slow patch and a considerable amount of uncertainty in the local Calgary market as a result of issues in the oil and gas segment. The real estate market being somewhat “un-predictable” as a result - although real estate is never really a predictable commodity on a good day and often reacts to what is happening both locally and worldwide.
I think that regardless of the statistics and media reports, it’s worth recognizing that people are still selling homes, buying homes, moving up, relocating into the City or out of the City, expanding families, downsizing, investing, or just simply wanting to move and that natural cycle will continue regardless.