After a slow start to the year, spring has sprung in the Bow Valley; the spring market took off in April with sales doubling March’s sales. With warm weather finally coming to the Bow Valley and more homes coming to market, there were 65 transactions last month. Inventory has risen with the season to 193 listing from 177 last month. The majority of this increase was in townhouses while detached and semi-detached home inventory decreased.
Year over year, April sales are up from 47 in 2017; a 38% increase in sales. Active listings are up year over year from 180 in 2017; a 7% increase. The year over year increase has primarily been in detached and semi-detached homes, climbing from 56 last year to 65 currently on the market. Development lots have decreased from 23 to 13 this spring.
Depending on which segment of the market we are looking at, prices are either holding steady or climbing. Properties that are either Tourist Home or Visitor Accommodation allowing short term rentals continue to see significant price growth. Entry level apartment condos are also experiencing growth in values. Townhouses, detached and semi-detached values are holding steady and not seeing any significant growth over the past few months.
Overall, the market has just under 3 months of inventory which puts us back into a seller’s market. Townhouses are currently in a balanced market, lots are in a buyer’s market and the remainder of the market is very much in a seller’s market. Within each segment of the market, there will be differences depending on location, price and size of the property.
Year to date, MLS sales are down 17% from 2017 (153 vs 185 sales). While some of the sales have gone to developer sales and not registered on the MLS, the market has shifted from the brisk pace of 2017. The slow start to spring, mortgage regulation changes, increases in mortgage rates and lack of inventory have all contributed to the slower start to the year.
Now that we have transitioned into the spring market, we expect to see strong sales for the next two months and a corresponding increase in inventory. Active listings peaked last year in the summer months and we would expect the same this year.