It has been a slow start to 2018 for resale real estate in the Bow Valley. A combination of low inventory, cold weather, mortgage regulation changes and global economic uncertainty have resulted in significantly slower sales this quarter. (Our sale statistics are also lower due to an increased volume of developer non-MLS sales). There were 103 MLS sales in Q1 2018 down 26% from Q1 2017 and the slowest quarter since Q4 2015. Year over year, March sales were down 47% from 60 to 32 sales. However, inventory has barely budged year over year rising 1.7% year over year to 177 active listings.
Month over month, inventory has seasonally risen by 18% from 150 listings. In 2017, listing increased 20% between February and March. Only detached / semi-detached homes saw a significant increase in listings from 55 to 72 this month. Townhouses increased slightly from 31 to 40 properties on the market. Apartments, hotel condos and lots have remained stable.
Townhouse inventory levels have returned to a balanced market for the first time since September 2016. The three-month median sale price for single family homes increased $30,000 year over year as the slower sales are not resulting in the price increases we witnessed last year.
Overall, the market has 5.5 months of inventory which is barely into balanced market territory. While the slow start to 2018 is a significant change from last spring’s blistering pace the market remains healthy. The repose is also offering some buyer’s the opportunity to choose and consider. Townhouses have 6.6 months of inventory, apartments 5 and detached / semi-detached homes have 7.2. A balanced market is between 5-8 months of inventory.
One questions we are often asked is what prices are doing. Below are some recent sales with examples of growth they have achieved over the past few years. While we have been seeing price-adjustments on the MLS for all types of properties, this is more of an indication that the market is becoming more competitive or the sellers’ were trying to achieve a premium rather than prices generally coming down in the Valley.
228 Benchlands Terrace 15% increase: Sept 2015 $1,205,000 – March 2018 $1,390,000
127 Moraine Road 11% increase: April 2015 $692,250 – March 2018 $766,500
56 Ridge Road 17% increase: July 2014 $579,000 – March 2018 $675,000
211-170 Crossbow 10% increase: May 2016 $453,000 – March 2018 $500,000
107-017 Montane Road 115% increase: May 2014 $220,000 – March 2018 $472,500
206-300 Palliser Lane 10% increase: May 2014 $390,000 – March 2018 $429,000