The State Of Calgary’s Housing Market
If you’ve been interested in buying real estate in Calgary for some time now and been waiting for the market to improve, you might have to keep waiting for a bit longer. Over the summer, real estate supply improved drastically, but a flurry of buying activity quickly reduced supply to a very limited number of available homes and condos.
Home and Condo Price Changes
Late last year, the Calgary Real Estate Board (CREB) released their predictions for growth in sales in the Calgary housing market in 2014. Home sales were projected to increase 2.4 percent and condo sales were expected to grow by 6.4 percent.
CREB also anticipated that home prices in Calgary would increase by 3.8 percent this year, making the average home price just over $480,000. For condominiums, the average price was expected to increase by 5.3 percent, settling at an average price of more than $300,000.
As of June, the Calgary housing market has exceeded all projections and expectations from the CREB. The average home price in Calgary has now settled at $482,500, a 7.5 percent increase from last year. In addition, the average condo price has risen to $310,000, an 11.5 percent increase.
A Shifting Real Estate Landscape
While it is true that the current market still tends to favor sellers, the number of new listings is up by about 16.5 percent in comparison to a year ago. In June, it was reported that a mere fifteen condos remained build and unsold the month before.
The Calgary area welcomes this comeback on the heels of seven-year pricing lows that peaked way back in 2007. Prices have only recently reached those highs again in the area. For those that bought during the 2007 peak, it has been a long struggle simple to climb their way out of the ditch they were thrown into.
Now, homeowners are much more willing to sell their homes and upgrade, which is helping to create additional inventory in the local market and easing the pressure that has been on the market for some time now.
Creating More Supply
That being said, everyone has not viewed the dramatic comeback of the Calgary housing market as a positive. Back in June, an economist from the Bank of Montreal warned anyone that was thinking of moving to Calgary that they might reconsider their decision at present.
While the market is striding in the right direction, supply is still relatively low, making it difficult to find the home you want, and also increasingly the likelihood that, when and if you do find your dream home, you’ll have to compete with another prospective buyer to ultimately end up in a new home in Calgary.
That being said, prospective buyers should not give up on the Calgary market entirely, as supply is still expected to increase. According to Doug Whitney, President of the Calgary chapter of the Canadian Home Builders’ Association, “the reality is there are 12,000 approved lots in the city, it’s a matter of getting things going.”
If you’re considering buying or selling a home in Calgary, you should certainly consider working with an experienced realtor to explore your options or list your home with an accredited agent like David Setter!