Hello, October! The season of pumpkins and plaid is upon us. The weather is swiftly turning crispy here in YYC, but we are very happy to report that it looks as though the snow will hold off a little longer. In the meantime, we have some very important statistics to go over with you.
The word ‘statistics’ carries many negative connotations. People immediately think of the class they failed freshmen year or the report their boss is always hounding them for. However, statistics are important–especially if you are in the real estate market hoping to sell or buy a home. Staying informed is the best way to make a wise decision you will not regret come November.
Without further ado, here are the statistics from what happened in the real estate market in September, brought to you by the Calgary Real Estate Board. For more details and complimentary information, visit their website at the following link: www.creb.com.
To kick things off, some good news. The detached housing sector has always had the heaviest influence on the overall market. In September the benchmark price for a detached home was $503,400. This may be 3.3% lower than last year, but it is the second consecutive month the benchmark price has been at this price, which means the market is growing more stable.
CREB® chief economist Ann-Marie Lurie says, “The decline in demand has caused many to anticipate steeper price declines for detached homes. That hasn’t happened in large part because detached supply levels haven’t climbed as sharply as many expected. There was a limited amount of supply in the overall market when this cycle began, and while levels did rise and remain somewhat elevated, they were well below previous highs.”
Essentially, the market crashed in the absolute best way possible. If there had already been an extremely high level of inventory when the economy took a hit, we would still be scrambling to recover. However, since levels were not that high to begin with, the market was able to handle the extra inventory.
We have mentioned the odd environment of the market not being great but prices staying unadjusted. CREB® president Cliff Stevenson address this, noting, “Consumers are really starting to come to terms with the current environment. Most sellers have adjusted their expectations at the same time that many buyers are realizing the prices are reacting very differently in different segments of the market.”
This is very good news. As people come to terms with the market, real change can begin and consumers will start to see a situation that fairly represents what is happening in the market.
Posted by Ken Richter on
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