December sales improved to levels more consistent with activity recorded over the past five years.
This follow weak sales activity last year.
A stronger second half in 2019 was enough to push annual sales up by 1%.
"Price declines, lower mortgage rates and some modest improvements in full-time employment helped support some demand growth in the city. Reductions in supply are also contributing to the slow adjustment to more stable conditions in the housing market," said CREB chief economist Ann-Marie Lurie.
"As oversupply in the market continues to ease, we should start to see more stabilization in prices. However, conditions continue to favor the buyer and this is weighing on prices".
December unadjusted benchmarks prices were $418,500. This is just slightly lower than last month and 1% per cent below last year's levels. Overall prices in 2019 declined by 3% over last year's levels. The total adjustment in prices in a 10% decline since the 2014 slowdown in the energy sector.
While they are signs of stabilization, conditions vary significantly by location, price range and product type. Improvements in the resale market have been mostly driven by lower priced product or areas where price declines were enough to bring more purchasers back into the market. Detached homes:
- Improved sales in the second-half of the year helped offset earlier declines. This results in detached sales that are relatively unchanged form 2018.
- While city wide levels remained stable, homes priced under $500,000 recorded sales growth of nearly 9%. However, sales declined by 11% for homes priced over $500,000.
- When considering sales activity by district, sales activity eased or remained relatively stable across most districts. However, exceptions include the North West and South Districts which recorded annual sales growth.
- Detached benchmark prices were $480,100 in December contributing to the 2019 average of $484,808, 3% below last year's levels.
- 2019 prices declines ranged from a 1% in the North East district to a 5% decline in the City Centre district.
- Stronger apartment styles sales in December were enough to push annual levels to 2,672 units. This is just above last year's levels.
- The improvements were mostly driven by gains in the North, West and South East districts. This is offsetting the significant declines in the North East, North West and East districts.
- New listings continues to ease across all districts except the South East. This district has seen a rise in new home construction and is likely contributing to some of the rise in new listings and inventory. Despite these trends in the one district, easing inventories relative to to the sales have helped reduce some of the oversupply in this segment.
- Reductions in oversupply helped ease the rate of decline in resale apartment condominium prices. However, prices in December remained 1% below last year's levels with a price decline range of 5% in the West district to a 1% increase in the South East district.
For the entire CREB® forecast, visit creb.com.
- The attached segment of the market has seen the largest improvements in sales when compared to the other product types. Annual sales improved by nearly 7% for a total of 3,780 sales.
- Both row and semi-detached product recorded improving sales with easing new listings and inventories. However, there was some variation depending on the district.
- December semi-detached prices were $388,200 and row prices were $283,000. Both segments saw annual price declines in excess of 3% and remain well below previous highs.
- Depending on the district, the range of price activity varied significantly across the semi-detached and row segments. In 2019, price activity ranged from a 7% decline in row prices in the East district to a 1% increase for semi-detached product in the North district.
Here are some properties we currently have listed:
- 4 bedroom family home, finished walk-out basement in McKenzie Lake.
- A luxurious condo located in Spruce Cliff with over 2800 sqft and overlooking the Golf course.
- 2 bedrooms and 2 bathrooms condo in Royal Oak, close to all amenties.
If you are interested in learning more, or checking out our current listings, give us a call at 403-830-1009 or, visit our website www.sellhomes.ca.