Fall has arrived! September, a month of transitions and new focus, has become a beautiful October. Let’s all just take a moment to appreciate the fact that September passed without gracing our lawns with snow. Thank you, September. You were good to us.
September was a good month for real estate. Not necessarily a great month, but nothing the market can’t handle.
After four months of relatively stable, unadjusted benchmark prices, September saw a 0.26 percent decline in benchmark prices, settling at $456,100, on average, per unit. This price decline was most strongly seen in the apartment sector where inventory levels rose higher than they typically are.
Residential sales were much lower than the five and ten year averages. Why was this? CREB® chief economist Ann-Marie Lurie says, “Rising unemployment and persistent weakness in the local economy is impacting housing demand. However, unlike earlier this year when consumers were reacting to uncertainty, recent activity reflects current economic conditions.”
Calgary’s real estate market may not be outrageously thriving, but lets keep it in perspective: the reason there are high inventory levels reported in most sectors is because Calgary needed the inventory for people coming to work and live in the city. Now, levels just need to re-balence themselves out again. CREB® president Corinne Lyall is persistent that the high inventory is nowhere near what it was during the last economic crash, so we need not be worried.
It is important to have perspective on real estate trends in order to remember the reality of the situation. The market will go through highs and lows, but it always balances back out. One bad month won’t throw the whole year off, just like how the high inventory levels we saw in September did not throw everything askew. Prices remained stable and will likely continue to.
For more information on CREB, check out their website at www.creb.com. They are a fantastic resource for finding a realtor, looking at neighbourhood profiles, reading up on the language of real estate, learning the answers to frequently asked questions and a plethora of other things! Take advantage of this organizations years of experience and knowledge. Also do not hesitate to sit down with us to discuss your desires and needs. As your real estate professional, we have your best interests at heart and want to make the process go smoothly for you.
Have a great October!
Your Real Estate Professional,