September was yet another busy month in the community with 20 sales, marking the third time in the past 6 months with 20 or more completed transactions. This past month’s total also outpaced the September sales numbers over the past 2 years, eclipsing the 15 transactions in 2019 and the 9 registered in 2018.
The activity was overwhelmingly concentrated in the detached single-family home category with 19 sales, the final transaction was an apartment condominium in the Bonavista Estates II complex. The overall actual Days On Market (DOM) numbers dropped rather dramatically from 66.1 days to 51.4 days, the DOM for detached single family homes was 50.5 days while the DOM for the lone apartment condominium property was 68.0 days. The DOM numbers spanned quite a wide range with several lingering properties selling that pushed the averages higher and it is worth noting that 7 of the 19 sales were completed in 10 days or less.
The current number of active listings dipped to 36 from 50 which is to be expected as we enter into the latter portion of 2020 and the Months Of Inventory (MOI) also dropped from 3.5 months to just 2.2 months based on the rolling sales average from the past half year. The factor to keep in mind with the rolling average is that we have passed what is traditionally the busiest part of the year as far as sales are concerned so the current MOI will likely climb moving forward.
Switching to the overall Calgary market we saw a continuation of the same recent trend with very healthy post-COVID lockdown resiliency as there were 1,702 sales last month which was almost 25% higher year-over-year and marked the strongest September total since 2014.
The real estate recovery after the COVID lockdown is still at very different stages depending on the price range and property type, however overall it has been faster and stretched out longer than expected. This activity is being fuelled by many factors including historically low interest rates, a dramatic increase in personal savings by individuals not negatively affected by the pandemic and a relative lack of inventory in many categories.
The outlook moving forward is quite difficult to determine at this point and forecasts from pundits and experts are truly all over the map. Only time will tell what the full ramifications of COVID will be, if a second wave leads to further shutdowns that will affect the market and if these higher sales numbers are the tail end of the pent-up demand or if this is the beginning of some longer term improvement.
As always, we’re here as a professional resource for all our clients and contacts and are more than happy to answer any real estate questions so please don’t hesitate to reach out to us.
We look forward to hearing from you soon.