City wide sales remain far below transactions levels recorded throughout 2005 – 2007
Calgary, Nov. 1, 2013 – Residential sales activity totaled 1,953 units in October, an 18 per cent rise over 2012 and pushing year-to-date volume increases to just over 10 per cent.
However, on a year-to-date basis, city wide sales remain far below transactions levels recorded throughout 2005 – 2007.
“Some people have noticed that properties are selling quicker, and at times above list,” said Becky Walters, CREB® president.“But, in spite of very positive signs, we are not seeing a repeat of 2006.”
Year-to-date, the average residential home was on the market for 37 days before selling. That’s 16 per cent less time than last year, but much longer than the 20 days recorded in 2006. In addition, the citywide sales price-to-list price ratio has increased, but is lower than the levels recorded seven years ago.
New listings within the city of Calgary totaled 2,522 units in October, a nine per cent increase over the previous year.
While the rise in new listings was not large enough to result in inventory growth, it is the fourth consecutive month of year-over-year gains.
“Price growth and tighter market conditions have encouraged some of the recent rise in new listings,” said Ann-Marie Lurie, chief economist. “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.”
A total of 14,340 single-family homes sold after the first 10 months of the year, a seven 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 seven 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.