Rise in new listings prevents further tightening of resale housing market
October, 2013 – The Calgary Housing Market saw an increase in new listings inventory in September.
“The increase in new listings has given buyers more choice,” said Becky Walters, CREB® President.
Although Calgary’s market still remains in seller’s territory, a shift has occurred with new listings to market. While monthly levels of new listings have been declining since 2011, over the past three months the levels of new listings have improved. The inventory growth was not enough to cause any significant changes, but it has helped prevent further tightening in the market.
First-time home buyers are significantly affected in this housing market as the housing selection is limited in the lower price ranges for single family homes. However, choice has improved for the higher-priced homes. Sales activity varies by community, property type and price. First-time home buyers searching for lower-priced single family homes often have to adjust expectations or consider alternative communities further out from the core, or property types such as condos.
While many buyers think the seller’s market conditions should lead to a significant price premium for their property, consumers remain price sensitive. “Tight market conditions have supported price growth in the Calgary market,” said Ann-Marie Lurie, CREB® chief economist. “But the pace of unadjusted monthly growth has eased in September.”
“While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year.”
“The impact of the floods likely boosted sales throughout July and August, and it appears as though some of that additional demand is starting to ease,” said Lurie. “Nonetheless, sales growth remains strong, in part because net migration has been stronger than anticipated and rental product is in short supply.”
Condominium apartment and townhouse sales totaled a respective 3,147 and 2,494 after the first three quarters of the year. Year-to-date sales growth is more than double the levels recorded in the single family sector.
“The condominium market offer affordable options for consumers in the city, and the growth reflect that,” said Walters. “But keep in mind condominiums still represent less than one-third of residential sales within city limits.” Single family sales totaled 13,006 units after the first three quarters of the year, a 6.7% increase over the previous year.
Single family sales increased in the third quarter, while the first two quarters were on pace with activity in 2012.
Condominium apartment prices totaled $272,900 in September, a 9.5% increase over 2012 and 0.9% higher than August figures.
Meanwhile, single family and condominium prices totaled a respective $463,700 and $299,100, similar to unadjusted levels recorded in August and more than seven% higher on a year-over-year basis.
The Calgary Housing Market Report with Sales Market Data from the Calgary Real Estate Board for Condominiums, Single Family, and Towns is available from our dropbox.