COVID-19 weighing on housing market April 2020

COVID-19 weighing on housing market

City of Calgary, April 1, 2020 –

After a strong start to 2020, economic conditions have dramatically changed, as COVID-19 is impacting all aspects of society.

The economic impact is starting to be felt across many industries. This includes the housing market.

March sales activity started the month strong, but quickly changed, as concerns regarding the spread of COVID-19 brought about social distancing measures. This had a heavy impact on businesses and employment.

“This is an unprecedented time with a significant amount of uncertainty coming from both the wide impact of the pandemic and dramatic shift in the energy sector. It is not a surprise to see these concerns also weigh on the housing market,” said CREB® chief economist Ann-Marie Lurie.

By the end of March, sales activity had fallen 11 per cent compared to last year. This is 37 per cent lower than long-term averages. The drop in sales pushed March levels to the lowest recorded since 1995.

“The impact on the housing market will likely persist over the next several quarters,” said Lurie. “However, measures put in place by the government to help support homeowners through this time of job and income loss will help prevent more significant impacts in the housing market.”

New listings dropped by 19 per cent this month. This decline in new listings compared to sales caused supply levels to ease and helped prevent a larger increase in oversupply. Overall, the months of supply remain just below five months, similar to levels recorded last year.

Prices were already forecasted to ease this year due to oversupply in our market. In March, the citywide benchmark price was $417,400. This is nearly one per cent lower than last year’s levels. The reduction in both sales and new listings should help prevent significant price declines in our market.

However, price declines will likely be higher than originally expected due to the combined impact of the pandemic and energy sector crisis.

HOUSING MARKET FACTS

Detached

Calgary Detached Housing Market Update

There were 690 sales and 1343 new listings in February 2020.

The median sold price was $470,000 and the average sold price was $536,080.

The average days on market were 46.

  • Detached sales eased by 15 per cent this month, driven by pullbacks in all districts except the North, which remained flat compared to last year.
  • The decline in sales was met with a larger decline in new listings, causing inventories to fall by 17 per cent and keeping the months of supply slightly lower than last year’s levels.
  • Detached benchmark prices have remained relatively unchanged compared to last year at $480,800. Price declines this month continue to be the highest for the City Centre, North East and West districts.

Calgary Detached Sale Price & Number of New Listings - Last 12 months Update

 
No. of Sales
No. of New Listings
Sale Price to List Price Ratio
Median Sale Price
Average Sale Price
Avg. Days On Market
2020-03
690
1343
97%
$470,000
$536,080
46
2020-02
686
1341
97%
$467,250
$529,689
53
2020-01
515
1211
96%
$459,900
$539,147
59
2019-12
503
555
96%
$460,000
$528,946
64
2019-11
701
948
97%
$462,135
$520,491
59
2019-10
844
1327
97%
$457,250
$526,650
50
2019-09
816
1516
97%
$457,500
$540,141
52
2019-08
922
1587
97%
$470,000
$532,802
50
2019-07
980
1605
97%
$469,000
$524,690
46
2019-06
1060
1789
97%
$469,900
$534,488
42
2019-05
1115
2015
97%
$480,000
$557,537
40
2019-04
836
1789
97%
$469,000
$538,535
35

Source Calgary Real Estate Board Provided by Ray Riley.com

Apartment

Calgary Apartment Housing Market Update

There were 218 sales and 476 new listings in February 2020.

The median sold price was $230,000 and the average sold price was $258,523.

The average days on market were 59.

  • With 217 citywide apartment sales in March, this was the only category to record a year-over-year gain. Much of the gain was due to improving sales in the South, South East and North West districts.
  • New listings this month did ease, helping support a small decline in inventory levels.
  • Persistent oversupply has resulted in continued downward pressure on prices. In March, the citywide benchmark price eased by more than two per cent compared to last year for a total of $243,700.

Calgary Apartment Sale Price & Number of New Listings - Last 12 months Update

 
No. of Sales
No. of New Listings
Sale Price to List Price Ratio
Median Sale Price
Average Sale Price
Avg. Days On Market
2020-03
218
476
96%
$230,000
$258,523
59
2020-02
209
558
96%
$242,500
$272,642
62
2020-01
146
569
95%
$210,000
$235,140
74
2019-12
134
241
96%
$248,500
$284,776
71
2019-11
185
444
95%
$225,000
$252,103
69
2019-10
246
445
96%
$248,500
$297,545
71
2019-09
241
502
96%
$247,500
$284,077
66
2019-08
276
564
96%
$235,000
$269,459
65
2019-07
277
493
96%
$249,999
$282,343
63
2019-06
244
668
96%
$232,750
$257,047
56
2019-05
287
624
96%
$240,000
$267,520
53
2019-04
205
563
96%
$230,000
$260,252
43

Source Calgary Real Estate Board Provided by Ray Riley.com



Attached

Calgary Attached Housing Market Update

There were 271 sales and 609 new listings in February 2020.

The median sold price was $331,500 and the average sold price was $377,059.

The average days on market were 58.

  • Both semi-detached and row sales declined this month compared to last year. Like the other property types, there was also a significant reduction in new listings.
  • The decline in new listings helped push down inventory levels for both property types, but it was not enough to prevent a rise in the months of supply.
  • However, this segment was oversupplied prior to the recent changes, impacting prices. As of March, prices remained nearly one per cent lower than last year’s levels for both semi-detached and row properties.

Calgary Attached Sale Price & Number of New Listings - Last 12 months Update

 
No. of Sales
No. of New Listings
Sale Price to List Price Ratio
Median Sale Price
Average Sale Price
Avg. Days On Market
2020-03
271
609
96%
$331,500
$377,059
58
2020-02
308
632
97%
$335,000
$395,014
61
2020-01
200
587
96%
$342,000
$391,683
73
2019-12
222
270
97%
$330,000
$374,588
65
2019-11
253
469
97%
$313,000
$365,615
62
2019-10
347
612
97%
$321,500
$381,658
56
2019-09
295
704
97%
$330,000
$384,154
58
2019-08
353
635
97%
$333,000
$385,138
61
2019-07
344
635
97%
$328,100
$391,556
57
2019-06
404
690
97%
$331,000
$406,214
54
2019-05
397
787
97%
$325,000
$394,481
48
2019-04
322
785
97%
$325,000
$383,250
44

Source Calgary Real Estate Board Provided by Ray Riley.com

REGIONAL MARKET FACTS

Airdrie

  • Like many other areas, Airdrie saw a decline in sales activity, along with a reduction in new listings and inventory. The reductions in supply and demand helped prevent any significant changes to the months of supply.
  • While the full impact of the COVID-19 crisis has not yet played out in the housing market, March prices remained comparable to last year’s levels.

Cochrane

  • Both sales and new listings fell this month compared to last year, causing inventories to fall to the lowest levels in five years. Like many other markets, Cochrane remains oversupplied, with easing prices.
  • The March benchmark price was $398,700. This is nearly two per cent lower than the previous year.

Okotoks

  • Trends changed this month, with flat sales and a decline in new listings. The decline in new listings was enough to cause a significant reduction in supply levels and the months of supply fell below five months.
  • Prices are trending down on a monthly basis, but remain comparable to last year’s levels, with a March benchmark price of $405,000.

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