The Calgary Inner City Home Market has shown some improvements for April. Compared to last year sales have been up and so have prices. Although from the month prior we are seeing some levelling off. The market is stabilizing.
One of the major influences in the real estate market is consumer confidence. The media plays a large part in this. As they start to report on the decrease in the unemployment rate, we will see more buyers coming off the fence. The current unemployment rate is 9.3% as of March, which is down by 0.1% from February. Not a huge drop, but it’s a drop.
Out in the field, I’m finding a change in what buyers are willing to accept.
A few years back, I found that buyers were open to making cosmetic changes to a property. Changes such as flooring, painting, minor repairs, etc. that aren’t a huge expense nor a time consuming task.
Now, I’m finding more and more buyers are passing on a home that needs renovations, and paying a bit more for a turn key home. A turn key home is a home where you walk in and don’t have to do anything to it but move in.
This is something to keep in mind if you’re planning on selling.
I have a number of properties on the market right now, some renovated and others not. Of the ones that the home owner took the time to update it – change out flooring, paint, replace damaged trim and doors, etc. sold quickly. The ones that require renovations are getting showings because of the price, but also getting a pass because buyers aren’t willing to do the work.
The buyers perception of value is changing. Lifestyle is playing a big part in their decision and they don’t want to sacrifice it because of delays brought on by renovations. So put in the effort before hand to update the home or reduce the price to where they can’t resist.
The Inner City Condo Market is seeing improvements in the sales and prices from April 2016. The sales increased by 4.5%, although from March it has declined by 4.6%.
The median price however, has increased by 5.9% from last April and by 4.4% from March. The current median price for all condos, apartment and row dwellings is $355,000.
The last few months we have been flopping around 4.85 months of inventory to 6 months. Currently it’s at 5.4 months, which isn’t too bad, although much better than even January of this year. This puts us in a balanced/buyer’s market.
It is so incredibly important to watch the market while you have your condo for sale. For instance, the Beltline which has the most condos in Calgary has increased its inventory by 2 months from February to March. This 27.5% jump in inventory changed the game by putting the ball in the buyer’s court. I’m not saying you have to chase the market, just be aware of it and prepared for these surprises.
When looking at the condos with one bedrooms and comparing them to ones with two or more bedrooms, there is a great difference in the activity.
The one bedroom sales have declined by 20% from March and unchanged from April 2016. The median prices have also decreased from March by 3% and from April 2016 by 8.5%. The median price for a one bedroom is $263,000.
Whereas the two+ bedroom unit sales have continued to rise. The sales increased from April 2016 by 46% and as well from March by 1.5%. The median price increased by 22.5% from April 2016 and by 6.6% from March. The median price is $355,000.
The value of the 2+ bedroom units has improved, making them more desirable than the one bedroom. They are more attractive to live in because of the space, making them also more rentable if you want to hold the property as a future
As mentioned earlier the months of inventory for the Inner City Condo Market is 5.4 months. For April we are seeing a huge gap from communities that are performing better than average and others that are just tanked.
There are about six communities that flipped from doing amazing with the condo inventory to being thwarted. Communities such as Altadore, Bankview, Bridgeland, Chinatown, East Village and Sunnyside all kept the inventory consistent, but the sales dropped significantly.
In March we saw a much more level playing field amongst the communities for managing their inventory. For April there were only 10 that did better than average.
If you’re considering what community to buy a condo in because of saleability look at Erlton, Inglewood, Killarney, Renfrew or South Calgary. All of these communities have managed their inventory better than average over the last three months.
The average days on market for condo properties is 41 days.
The Free Hold Inner City Real Estate Market improved greatly in sales and prices, than the condo market did.
Beware that when the media is reporting sales and prices they are talking about all of Calgary and all properties. This includes the condo market which tends to bring the results in a more negative light.
The sales for April when looking at freehold properties, which includes detached and attached, has increased by 20.8% from the year prior. It has also increased by 6.8% from March.
The median prices have remained the same from last year and dropped by 4.7% from March. The current median price is $676,500.
The months of inventory has also stayed relatively the same at 2.7 months. There are several communities that are experiencing this favourable activity. Communities such as Banff Trail, Capital Hill, Inglewood, Killarney, Mount Pleasant, Ramsey, Renfrew, Richmond, St. Andrew’s Heights, Sunnyside, Tuxedo Park, Windsor Park and Winston Heights have all done better than average.
If you considering which community to live in that manages its inventory well, consider these seven communities: Banff Trail, Capital Hill, Highland Park, Mount Pleasant, Killarney, Renfrew, South Calgary and Tuxedo Park. All of these have done better than average in at least 3 of the four last months.
The average days on market for freehold properties is 23 days.
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Please feel free to contact me if you’re looking for information on your area. You can expect these updates to pop up on my Inner City Facebook Page at the beginning of every month.