Tag Archives | Calgary Home Prices

Calgary Housing Market Price Gains: October 2013

Rise in new Listings occurs with Price Gains in Calgary’s Real Estate Market

Market Graph photo

November1, 2013 – The Calgary Housing Market experienced price gains in October and according to the Calgary Real Estate Board (CREB®) it was the “Fourth consecutive month of year-over-year new listings growth.”

1,953 properties were sold in October in Calgary, an 18% rise over October 2012. Year-to-date sales remain far below sales recorded between 2005 and 2007.  Homes are sometimes selling over list price so the sales price-to-list ratio has increased, but it is still lower than levels recorded 7 years ago.

New Listings increased 9% over the previous year and while the rise in listings wasn’t large enough to affect inventory growth, it was the 4th consecutive month of gains when compared year-over-year.

According to Ann-Marie Lurie, chief economist for CREB®, “Price growth and tighter market conditions have encouraged some of the recent rise in new listings. This is a trend worth noting as the rise is easing some of the tightness in the market. Despite some movement, seller’s market conditions persist.”

According to the November CREB® news release (links to whole report including graphs are below):

“A total of 14,340 single-family homes sold after the first 10 months of the year, a 7 per cent increase over the previous year. Sales growth has exceeded expectations mostly due to the recent rise in new listings, which was limiting growth potential in the first half of the year.

“Year-to-date, 3,482 condominium apartments and 2,774 condo townhouses were sold. While condominiums remain a smaller segment of the market, year-to-date sales are 18 per cent higher than last year.

“Unadjusted benchmark prices in the city of Calgary increased in October relative to both September of this year and October 2012. Single-family prices benchmarked at $468,000, while the benchmark price for condominium apartment and townhouse were a respective $276,100 and $302,200 in October.

“Apartment-style condominium prices have been increasing at a faster pace than single-family home prices. However, unadjusted condominium prices remain 7 per cent below peak levels, while single-family prices have risen above previous highs.

“Single-family and condominium townhouse prices recorded year-over-year increases of eight per cent, while condominium apartment prices increased by 11 per cent.

“‘Employment growth, strong net migration, lack of rental product and low mortgage rate has contributed to the rise in housing demand over the past two years,’ said Lurie.

“‘Meanwhile, supply levels have not kept pace, causing prices to push up.’

“While upward price pressure is expected to persist in the near term, she said, it is unlikely we will face the same spike seen in 2006. That’s because economic conditions are quite different today than they were in that time period.”

The full Calgary Housing Market Report from the Calgary Real Estate Board for Condominiums, Single Family, and Towns is available for October and includes graphs.

 

 

 Selling Calgary Group     Elke Babiuk
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Calgary Housing Market Stats – May 2013

Calgary Home Sales Hold Momentum

Market Graph photo

Prices rise as resale market continues to favour sellers

Calgary, June 3, 2013 – City of Calgary residential monthly sales improved over the previous year, mostly driven by increased demand in the condominium market.

Sales activity in all categories totalled 2,544 units for the month, a seven per cent increase over May 2012 figures.

“We’re back to normal levels of activity,” said Becky Walters, president of CREB®’s board of directors.  “Last spring was the first time since the recession that we saw more typical levels of sales, and this spring sales recorded further growth.”

Sales growth in the city is exceeding expectations, although the rate of increase has slowed from 2012’s double digits.

There is downward pressure on inventory levels, because there are fewer than normal new listings at a time when sales volume is increasing. Inventory levels are 17 per cent lower than levels recorded in 2012.  These two factors are creating market conditions that favour the seller, causing stronger than expected price growth.

“Buyers need to have financing in place so they can act quickly when they see the right property,” Walters said.  She added that buyers also need to have a clear sense of what they can afford and what they are prepared to pay before entering negotiations.

But she noted that market conditions today are much different for sellers than the last time our market favoured them.  While properties are selling at a faster pace and at prices closer to list, buyers have a range of choice in various segments, communities and price ranges.  Furthermore, consumers today are more cautious than a few years ago.

Single-family sales totalled 1,766 units in May, three per cent higher than levels recorded in 2012.  While sales volumes are consistent with long-term averages, sales growth is hampered by the decline in new listings, especially in the lower price ranges.

The unadjusted benchmark single-family price totalled $456,900 in May, a seven per cent increase over 2012 and a one per cent increase over the previous month.

After the first five months of the year, condominium apartment sales totalled 1,672 units, a 10 per cent increase over the same time in the previous year.

“Tighter mortgage rules impacted what buyers could afford to purchase in the Calgary market,” said Ann-Marie Lurie, CREB®’s chief economist.  “And while the majority of buyers are purchasing single-family homes, the attractive price point has improved demand for condominiums.”

With less supply relative to demand in resale, condominium prices are on a path to recovery.  In May, the benchmark price for condominium apartments totalled $263,600, a year-over-year increase of seven per cent.  Condominium townhomes reached a benchmark price of $292,100, a five per cent increase over the previous year.

“Improvements in Calgary’s resale housing sector are being fueled by the combination of employment gains, migration growth and tight rental market conditions,” Lurie said.  “However, resale price growths will likely moderate, as competition in the new-home sector and sluggish economic growth expectations will weigh on the housing market.”

Our DropBox: Calgary Housing Market Stats – May 2013 – Community Stats for Single Family, Condominium, and Town and Country.

 Selling Calgary Group     Elke Babiuk
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Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013

Tightened Housing Supply Curbs Sales Volume

Market Graph photo

First Quarter sales improve in condo market, and decline in single family sector

Calgary, April 2, 2013 – The inventory of active homes for sale in Calgary are the lowest March levels in more than five years. The decline in new listings hampered resale sales growth, which declined by more than two per cent in March compared to March 2012.

New listings in March are five per cent lower than levels recorded in 2012, and five per cent lower after the first quarter. The overall active listings stand at just 4,006 units, up from February’s levels but well below the number available one year ago.

“Less resale product available to consumers is ultimately limiting sales growth,” said CREB® President Becky Walters. “In addition, resale homes are selling in less time and with continued upward pressure on prices.”

Walters said buyers have grown accustomed to a market when they have more time to make decisions because there was ample supply. But, as market conditions have tightened, if they are serious about purchasing a resale home, they can no longer significantly delay that decision, she said.

“While market conditions are a far cry from activity witnessed throughout the frenzy in 2006 and 2007, there has been a noticeable change over what became the norm over the past few years.” Walters said.

Single-family, year-over-year sales growth declined by six per cent in March, a reflection of declining supply. Active inventory totaled 2,713 units, 22 per cent lower than levels recorded in 2012, and the lowest March inventory level recorded since 2007. The market balance continues to trend into seller’s territory in this segment causing a year-over-year price increase of nearly nine per cent, for a total of $446,500 in March 2013.

“Tighter rental conditions and continued employment growth has supported housing demand growth,” said Ann-Marie Laurie, CREB®’s chief economist. “However, for those looking for more affordable single family home products, their choices continue to narrow.”

She said new single-family listings under $500,000 are declining at double-digit rates, driving consumers at that price point to either surrounding towns, condominiums or the new home market.

The condominium townhouse market is the only category to record a year-over-year rise in sales activity for the month. This is in part because the level of new listings improved in March 2013 relative to March 2012. Condominium year-over-year apartment sales declined by nearly three per cent in March.

However, after the first quarter, sales activity totaled 830 units a 6 per cent increase over the previous year. Condominium townhouse sales totaled 652 units at the end of the first quarter, a 15 per cent increase over the previous year.

“The condominium apartment market remains in balance,” said Lurie. “While it has moved to the lower end of the spectrum, it remains better supplied then the single family market and the majority of product available is in an affordable price range.”

The benchmark apartment price totaled $257,700 in March, a six per cent increase over the previous year. Meanwhile, the condominium townhouse benchmark price experienced a year-over-year increase of 4 per cent, to $286,800.

“Despite tighter market conditions, it is unlikely that we will have another significant run-up in prices,” said Lurie. “Outside of easing economic factors expected this year, consumers have options in the total housing market.” Said Lurie.

CREB® Calgary Regional Housing Market Statistics – Calgary & area – March 2013

Calgary Housing Inventory & Sales - 2007-2013 (March) graph

Calgary Housing Inventory & Sales – 2007-2013 (March)

Calgary Home Prices March 2008 - March 2013 Graph

Calgary Home Prices March 2008 – March 2013

 

Announcement - Selling Calgary GroupPlease Note: We switched between several platforms with our blog and market stats over the last couple of years so not all housing stats are here for 2012 or 2011. Back issues of our newsletter with monthly market stats are in the right column rss feed “Market Stats & Newsletter”. For more detailed real estate market information from the Calgary Real Estate Board, please see our shared dropbox folder for 2012-2013 Calgary and area Market Stats. Files are downloadable. Monthly District Market Stats for 2013 for Calgary, and Rural Stats for Towns and acreages are downloadable as follows:

  1. January – Calgary Real Estate Market Stats – 2013
  2. February – Calgary Real Estate Market Stats – 2013
  3. March – Calgary Real Estate Market Stats – 2013

We also have the above files for 2013 bundled in our Bitly account and we will be archiving all the monthly stats there.

 Selling Calgary Group     Elke Babiuk
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