It appears as though we are about to get our first hint of spring here in the Bow Valley in the next few days. There are still a couple of months of winter to go but the days are finally getting longer and warmer. 2018 is off to a much slower start than 2017; there were 31 sales last month up from 25 in January. There was a significant drop in sales from February 2017’s 50 transactions; much of this can be attributed to our low level of inventory on the market.
Overall, the market is hovering between a balanced and seller’s market. As we move towards the spring market, we should see an increase in listings and an increase in sales to match. The only segment of the market not currently in seller’s territory are hotel condos. The three-month average sale price for townhouses has increased nearly $70,000 year over year and there are just under five months of inventory. Apartments have experienced a $30,000 drop in the three-month average sale price year over year as sales are primarily in the entry level segment. The median sale price for detached and semi-detached homes climbed again in February to $1,027,500.
The biggest year over year drop in sales was in the hotel condo market going from 11 to 2 transactions. There are multiple factors here including the challenge of financing, the increase in prices vs return on investment and low inventory levels. Detached and semi-detached home sales fell from 18 to 12 transactions year over year; this again is a matter of active inventory and the massive increase in values we experienced over the past year.
Over the past few months, the significant increases in values we experienced have been slowing. Year over year, both the average and median sale price is up across all segments of the market; we do not however expect to see the same massive growth in prices if sales remain at these lower levels. Entry level townhomes do continue to see some price growth due to their very limited supply. March of 2017 started to see our increase in listings with a 20% increase in inventory from the previous month. This spring, we should see an increase in homes on the market over the coming weeks which will result in an increase in sales