Tag Archives | Calgary Real Estate

Calgary Towns: Real Estate Housing Market Sales – 3rd Quarter 2013

Real Estate Booms for Airdrie, Cochrane, and Okotoks

Market Graph photo

October, 2013 – Residential Home Sales in Calgary area towns 22% higher in the 3rd quarter of 2013 than 2012.

The tight Rental Market in Calgary, combined with the additional demand created by Calgary’s June floods, and increasing net migration has resulted in rising real estate housing market sales in Airdrie, Cochrane and Okotoks.

Home Sales reached record highs in the surrounding towns for the third quarter, mostly driven by gains in the single-family sector. The declining supply of affordable single family homes within the city of Calgary has encouraged home buyers to consider surrounding areas such as Cochrane, Okotoks, and Airdrie.

In September, the typical single family home in Calgary was $463,700, compared to $351,400 in all surrounding towns. While conditions in surrounding towns vary, single family homes in Calgary’s bedroom communities tend to provide newer and larger homes at a lower cost relative to homes in Calgary. Lot sizes are often larger as well.

Benchmark Real Estate Prices averaged $388,933 in Okotoks, $405,933, in Cochrane, and $365,100 in Airdrie, surpassing the 2007  high recorded for that town.

OKOTOKS

Year-to-date residential sales activity showed a 13% gain over 2012.  However, the number of new listings on the market fell by nearly 13%.  Supply has tightened from 2012, when there was an average of four months’ supply, to less than three months’ supply in 2013. Single family benchmark prices averaged $388,933 in the third quarter, a 4% increase over the third quarter of 2012. While single family prices have been on the rise since the last quarter of 2011, prices remain just shy of unadjusted peak levels.

COCHRANE

Sales activity showed  7% increase over 2012. However, new listings in the area have improved significantly in the third quarter, preventing erosion of inventory levels. This increase in listings is in part a result of the higher share of new homes listed on the resale market in the third quarter. New product represents more than 20% of the MLS® transactions recorded in Cochrane, higher than figures in Airdire, Okotoks and Calgary.

The months of supply, one measure of balance in the market, has been trending down this year. However, with just over than three months of supply, Cochrane’s market is not as tight as Airdrie or Okotoks. Prices are recovering but remain below peak. Single-family third-quarter benchmark prices averaged $405,933, a 5% increase over the previous year.

AIRDRIE

Residential sales showed a 14% increase over the previous year. Sales growth over the first two quarters had been dampened by overall declining listings, but it surged in the third quarter as the level of new listings was significantly improved. Affordability is one factor drawing in consumers. In Airdrie, single family homes account for nearly 80% of the sales activity, of which more than 60% of those sold this year were priced below $400,000.

The rise in listings did not keep pace with the rise in sales, causing inventory levels to fall and tightening the market. With conditions that favour the seller, homes are on the market for less time and they are selling closer to list price. Tight market conditions have supported year-over-year price gains of more than 7%. In September, the benchmark single family home price reached $365,100, surpassing unadjusted highs recorded in 2007.

The Calgary Real Estate Board’s 3rd quarter Housing Report for Surrounding Towns is downloadable from our dropbox.

 

 Selling Calgary Group     Elke Babiuk
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Calgary Housing Market Sales Stay Strong: August 2013

Seller’s market conditions persist, pushing up prices

Market Graph photo

Calgary, Sept. 3, 2013 – Summer Sales Stay Strong for the Calgary Housing Market in August.

Residential sales within city limits saw a 27.5% increase over 2012 and 8.7% on a year-to-date basis, well above long-term trends for the month, mostly due to improved activity in the single-family sector.

“The sales have been limited by the need for more resale listings,” said CREB® President Becky Walters. “However, August did see more new listings than last year, giving buyers more choice.” August new listings recorded a year-over-year improvement of 7.4%. While seller’s market conditions persist and total inventory levels keep falling, improvement in new listings helped prevent further tightening in the market despite the sales growth.

Single-family sales were 30% higher than the year before and year-to-date sales activity has grown by 5.4 %, slightly stronger than anticipated.

“Lack of choice, particularly in single-family homes, has limited single-family sales growth,” said Walters. “However, improved new listings in the higher end of the market have created an opportunity for those looking to upgrade.” Year-to-date condominium apartment sales totaled 2,823 units, a 13.7% increase over the previous year. Unlike the single-family market, new listings are declining, causing the market to become tighter than levels recorded in the previous month.

The condominium townhouse market, like the single family market, recorded strong sales growth and a rise in new listings, slightly helping to ease a tight market. “Housing demand has been supported by another year of strong migration levels, improving employment and wage growth,” said Ann-Marie Lurie, CREB® Chief Economist. “Last year’s mortgage rule changes did not reverse the sales growth in our city, but did redirect demand to more affordable product.

“While recent increases in lending rates may require purchasers to adjust their expectations, Calgary remains a relatively affordable Canadian city. Our affordability, combined with a positive economic outlook is expected to support demand growth for the remainder of the year.”

Single-family benchmark prices reached $464,700 in August, a 7.4% rise from the previous year and a 0.7% increase over July. Condominium apartment and townhouse prices totaled a respective $270,600 and $298,500 in August, increasing by more than 7% compared to the previous year.

“Price appreciation typically reflects the level of supply and demand in the market,” said Lurie. “Tight market conditions have supported stronger-than-expected price growth in the city, but this price appreciation needs to be taken into context.

“While citywide single-family benchmark prices have risen above unadjusted highs by $13,400, as of August both condominium apartment and townhouse units are a respective $26,400 and $32,300 below the unadjusted highs recorded in 2007.”

 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 Home Prices Reach New High – April 2013

Market Graph photo

Sellers’ market conditions push up prices across all categories

Calgary, May 1, 2013 –The benchmark price of single- family homes reached a new high of $452,900 in April, as market conditions that favour the seller finally drove prices above the unadjusted peak in 2007.

“It’s really encouraging to see that the Calgary market remains strong,” said Becky Walters, CREB® President. “It’s reassuring to both buyers and sellers to see that this area is outperforming many parts of the country.”

Single-family sales totaled 1,611 in April, nearly two per cent higher than the previous year, but year-to-date figures are similar to levels recorded in 2012. Sales growth in the first part of the year was stifled by a shortage of new listings and inventory. However, the year-over-year increase in new listings of 5.4 per cent helped support sales growth in April.

“Declining selection in the lower price range and market conditions that favour the seller in the overall single-family market has resulted in a boost in demand in the condominium market and surrounding towns,” said CREB® Chief Economist Ann-Marie Lurie. “Inventory levels declined across all of these segments. However, surrounding towns remain in balanced territory, as they experienced the effect of previously elevated inventory levels.”

After the first four months of the year, condominium apartment sales totalled 1,259 units, an 11 per cent increase over the previous year. Sales growth outpaced the number of new listings, causing inventory levels to decline to 871 units. This pushed the market into sellers’ territory.

Tighter market conditions supported a year-over-year condo apartment benchmark price growth of 7.35 per cent. Unlike the single-family sector, however, condo apartment prices remain well below unadjusted highs recorded in 2007.

Walters said a move to a sellers’ market will encourage those who have been waiting for price recovery to put their homes on the market. This will offer more choices for buyers.

“New listings have been declining for the last few years as prices had not recovered,” she said. “People who did not have to sell chose to hold off. Price improvement can encourage new listings, easing some of the tension on the supply levels.”

There were 3,476 new residential listings in the city, a seven per cent increase relative to 2012. Sales activity also increased to a total of 2,381. Residential year-to-date sales improved by nearly four per cent compared to the same time in 2012. Meanwhile, citywide benchmark prices totaled $406,000 a seven per cent rise over the previous year.

“Calgary’s housing market continues to defy national softening trends as gains in the employment sector, migrant growth, rising wages and low interest rates are translating into growing demand for housing,” said Lurie.

For the first time since 2007, conditions favour the seller. However, economic conditions today are vastly different, making it unlikely that Calgary will see a repeat of those conditions, said Lurie. Our economy faces some challenges this year, and consumers still have options in both the new home market and surrounding towns, all factors that will temper price growth.

  1. January – Calgary Real Estate Market Stats – 2013
  2. February – Calgary Real Estate Market Stats – 2013
  3. March – Calgary Real Estate Market Stats – 2013
  4. April – Calgary Real Estate Market Stats – 2013
  5. 10-year Market Stats (2004-2013)
 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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Calgary Condo Market Shows Signs of Life: Feb 2013

Market Graph photoCalgary Housing Market in condo sales growth is double digit year-over-year

Calgary, March 1, 2013 – Total residential sales for the month of February 2013 totaled 1,711 units, a one per cent decline over the previous year. Condominium sales have made significant gains increasing by 13 per cent relative to February 2012.

Year-over-year single family sales growth totaled 1,209 units in the month of February, as supply levels continued to decline, limiting choice for those in the market.
“When new product comes onto the market, buyers are not delaying their purchasing decisions as the majority of homes are selling in less time at prices closer to their list price,” said CREB® President Becky Walters. “The tighter market conditions have supported price growth, however despite the current gains, single family home prices remain below the unadjusted benchmark high of $451,000.”

The unadjusted single family benchmark price for February 2013 was $442,500, a 1.3 per cent increase over the previous month and nine per cent higher than levels recorded in February 2012.

“With less selection in the single family market, particularly at the lower price ranges, more consumers are turning to the condominium market,” said Ann-Marie Lurie, CREB® Chief Economist. “Throughout the downturn there were more single family homes priced under $400,000. However, over the past few years the number of new single family listings in this range represents a declining share of the market, leaving consumers looking for more affordable products.”

Improved sales activity combined with reductions in total inventory levels have provided room for growth in condominium prices. The condominium apartment benchmark price totaled $252,900 in February 2013, a six per cent increase over the previous year. Meanwhile, townhouse condominium prices recorded a year-over-year increase of 4.7 per cent for a total of $283,200 in February.

“During the boom years, Calgary experienced significant growth in the employment sector and shortages in housing supply, ultimately creating frenzy amongst consumers driving up prices at unsustainable rates,” said Lurie. “Condominium prices have since corrected, and while the current price gains are a sign of recovery, the unadjusted condominium apartment and townhome benchmark prices still remain 14 per cent below the peak levels.”

While the average price reflects record levels in Calgary, those numbers can be misleading,” said Walters. “Last year there were more home sales in the higher-end segment of the Calgary market compared to 2007, and this trend has continued into 2013, causing the average price to rise above peak levels.”

CREB® focuses on the benchmark price which is based on the attributes of the home including repeat sales. This pricing methodology provides a better indication of how prices for similar properties have trended over time. “While our economy does not reflect growth recorded pre-recession and continues to be plagued by short term risk, consumers are feeling confident about the long term prospects of this city and continue to support growth in our housing sector.” Said Lurie.

For more detailed real estate market information from the Calgary Real Estate Board, please see our shared dropbox folder for 2012-2013.

 Selling Calgary Group     Elke Babiuk
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NEW Specialty Real Estate Pages for Home Search

Announcement - Selling Calgary GroupWe are truly excited about launching some specialty Real Estate pages on www.SellingCalgary.pro and invite you to visit the Rich Resources and MLS® Listings available:

Our Calgary Real Estate News-Market Reports are now found in our Selling Calgary Group Real Estate Newsletter (RSS Feed in side column).

Our shared dropbox folder contains the files for the combined monthly and quarterly Real Estate Housing Stats for Calgary-area Rural, Calgary Residential, Calgary Condos, and Satellite towns.

 Selling Calgary Group     Elke Babiuk
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Calgary’s Resale Housing Market Continues to Improve – Jan 2013

January sales and prices rise over previous year

Calgary, February 1, 2013 – Residential real estate sales in the city of Calgary started the year on a positive note, increasing by 15 per cent over the same month in 2012.

Total sales were 1,230 units, a significant increase over the 1,068 units last year. But sales remain well below January levels recorded through the peak  years  of 2003 – 2008.

“While activity is typically slower in the winter months, recent improvements in single family new
listings helped support improved sales in that market,” said  CREB® President Becky Walters.
“Overall indicators put the market in balanced conditions.”

Single family sales totaled 879  units in January, a 15 per cent increase over January 2012 levels.   New  listings remained just above levels recorded at the  same  time in 2012, for a total of1,737.  The slight improvement in listings helped support sales growth, although inventory levels remain down by  double- digits.

“Inventory levels have  improved relative to December, as is the  seasonal trend,” said  Walters. The lower level of inventories can pose a challenge for buyers, as they will have to make their buying decision quicker than buyers have done over the past four years.
“However, this is by no means a signal that the seller has the advantage,” said Walters. “Consumers are fairly price-sensitive and look for value in their purchase.” Unadjusted single family benchmark prices are showing improvement over January 2012, increasing by nine per cent. They are relatively unchanged over figures reported in December 2012.

“Prices have improved in the Calgary market, but as always it is important to keep some perspective on this,” said Ann-Marie Lurie, CREB® Chief Economist. “While January’s year-over-year increase seems significant, price recovery occurred in the spring months of 2012 under tighter market conditions and home prices leveled off for the remainder of the year.”

Apartment and townhouse condominiums recorded respective sales of 204 and 147 units in January 2013. Although sales increased, the number of new listings declined. “With excess supply relative to demand persisting for several years, the condominium apartment market has been slow to recover,” said Lurie. “Sales growth amidst declining listings has supported recent improvements in condominium apartment prices, something that has already been occurring in the single family sector.”

The unadjusted benchmark apartment price totaled $251,300 in January, a 7.5 per cent increase over the 2012, and a one per cent increase over December figures. Meanwhile, the condominium townhouse benchmark price was $283,400 in January, 4.9 per cent higher than January 2012, and slightly lower than levels recorded in December.
“There is cautious optimism over the economic situation in Calgary,” said Lurie.

While energy companies face market access challenges, several options are being considered to reach more diverse markets, she said. “If some of these options are economically viable and pass regulatory approval, this would support economic growth moving forward.”


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.

 Selling Calgary Group     Elke Babiuk
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