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