Okay, I know you read the tagline here and are eager to see where these price drops have occurred. I promise I will get to that as soon as possible.

But first, I just wanted to recap last month’s blog to give you an understanding of why we are here.

RECAP

Last month, we saw a decline slightly (it was 100%, which isn’t really a decline), but the activity did drop.

This was driven by an increase of 12% in listings then, while sales increased by 8%.

While this trend was happening, our appreciation across all segments was stalling and only incrementally increasing.

Now that we are all caught up, let’s take a look at the numbers this month and see how we are faring.

AGGREGATED ABSORPTION RATE (ABS Rate) – CALGARY – ALL SEGMENTS

In May, we saw the ABS Rate literally fall off a cliff to 85% for the month. As mentioned, this was at 100% last month. This 15% drop-in activity has not been driven by less sales activity, but by more and more sellers entering the market.

This month we saw active listings increase by 26% while the number of sales increased by 7%.

Now I know, this cliff is music to buyers’ ears 🥳, but it isn’t anything new. If we look at the graph, we see this decline usually happens in May as the lull of the summer months kicks in.

However, we are now seeing this happen a bit earlier than in previous months. And more so, the cliff is steep this year than last and mimics the same decline we saw in 2022.

So the point is this, seasonality has kicked in and our market is ready for Summer 🏖️.

This change is happening sooner than later, but it is taking place.

The great thing about this change is that it is still a good time for sellers and buyers to get into the market. I’ll elaborate on this a bit later on.

Slower activity is great, but how about these prices?

MEDIAN SALES PRICES PER SEGMENT

Yes, you aren’t seeing things. Those negative values are there and I double-checked them.

In May, we have seen next to no appreciation in the median pricing of single-family detached homes. This is the only segment in the green.

Attached, townhomes, and apartments all saw median price declines this month. Each of these segments saw a decline of 0.7% to 1.1% off their previous month’s values.

Should I use the emoji again….🥳

This is great to hear for our market as some easing on the pricing is taking hold for those buyers in the trenches.

Albeit these are modest declines, they are still reductions in prices. We will go into why this is in the breakdown below.

This is simply the first step to eating into the inflationary prices we have seen over the past two years.

But what does this mean for homeowners and buyers? Let’s look at our breakdown below.

BREAKDOWN

Earlier I mentioned that this time is still a good time for sellers and buyers. I know after reading the last section, sellers might think I’m out to lunch.

But hear me out.

Sellers

With the surge of the spring market behind us, we head into the Stampede and the lull of the summer. Albeit, the two weeks of Stampede is not the best time to list, it is a great time to prepare for the summer months.

Sellers tend to not want to look at selling their homes in the summer months. And who can blame them?

Blue skies, the mountains, BBQs, patios, and warm sunny days are far more important. Just describing the summer puts a smile on my face!

But this is also the time, if you are a serious seller, to take advantage of the lack of competition.

The summer and Christmas are the two best times to sell your home.

Because it’s not on anyone else’s mind 🙂

So if you are considering a sale, let’s chat (aly@calgaryareahomes.ca) and we can discuss why the timing is great and what you can expect to get from your sale. But we need to act now so we have your place prepared and ready to go for the all-important first impression.

Buyers

Rate announcements are around the corner (this Wednesday) and if you are looking, you might be pre-approved for a certain rate that is higher than what is offered currently (ask me why by emailing me at aly@calgaryareahomes.ca) and if there is a drop in the overnight rate from the Bank of Canada, your lender might have adjusted their product offerings also.

It wouldn’t hurt to speak to your lender (or me of course 🙂) to get an idea of where you sit. A lower rate means more purchasing power for you.

These price details are not going to be around forever. If you look at the trend analysis, we pick right back up towards the end of the summer when school starts and the vacation is over.

If you can take advantage now, let’s put some time aside and chat (book a time – click here). We can get you pre-approved, set up on instant listing alerts and start the search right away.

Being ready is your best offence in this market to get into the home you want.

Homeowners

Renewals are here. I just had a call with a client of a realtor I work closely with who has their home come up for renewal and needless to say the new rate shocked them.

If this is you and you are dreading that renewal letter in the mail.  I’d like to offer you some solutions. This can include:

• Transferring to a more competitive lender
• Re-amortizing your existing mortgage back out to 30 years to flatten the payment while also taking a lower-term mortgage.

If you are curious as to how these solutions can mitigate your new payment, send me an email at aly@calgaryareahomes.ca or visit my website at calgaryareamortgages.ca to learn more about how I can help.

As always, my goal is to provide you with exceptional service, great advice, and have you know that you have someone in your corner within this crazy real estate world.

If I haven’t mentioned it already, please feel free to email me at aly@calgaryareahomes.ca with any questions you might have. I’d love to connect.

Take care and chat soon,

Aly