Inventory levels fall in Chestermere and Okotoks
The Calgary Real Estate Board’s report for the second quarter of 2020 also covered towns and cities orbiting Calgary. Here’s the Board’s overview of Okotoks and Chestermere.
Sales in Okotoks eased by more than 30 percent, making it one of the slowest quarters since the early 2000s.
However, the pullback in new listings was also significant enough to cause inventories to trend down in the second quarter, remaining over 30 percent lower than last year’s levels. While this helped push down the months of supply from the elevated levels recorded over the past two quarters, levels remain comparable to last year, which is impacting prices.
Benchmark prices trended down for the third consecutive quarter and currently sit nearly four percent lower than last year’s levels. However, the decline in detached prices has been slightly slower. While they have continued to trend down from the past three quarters, they currently sit three percent lower than last year’s levels and seven percent lower than previous highs.
Unlike other regions, Chestermere’s strong first quarter was enough to offset pullback in the second quarter and year-to-date sales were slightly higher than last year’s levels. However, last year, Chestermere recorded some of the weakest sales levels seen over the past five years. Overall, year-to-date sales remain nearly 16 percent lower than the five-year average.
The growth in sales was met with a pullback in new listings, resulting in a significant reduction in inventory levels and helping reduce the amount of oversupply in the market. Despite the shift to more balanced conditions, persistent oversupply continues to weigh on benchmark prices, which have trended down for three consecutive quarters and currently sit at three percent lower than last year’s levels.