Calgary housing market booming in August
Records set for luxury home sales, median and average sale prices
CALGARY — Calgary’s red-hot housing market was sizzling in August as records were set for the most luxury home sales ever for the month, the highest median and average sale prices for the month and the second highest ever total MLS sales during the month.
The booming market was punctuated by another first near the end of the month. Last Friday, 12 luxury homes ($1 million plus) sold in Calgary — the most ever for a single day, according to Mike Fotiou, associate broker with First Place Realty in Calgary.
According to the Calgary Real Estate Board, total MLS sales for August of 2,196 in the city were up 27.53 per cent from last year; the average price rose by 8.80 per cent to $453,752; the median price increased by 6.40 per cent to $399,000; new listings were up by 7.39 per cent to 2,774; active listings were down by 24.81 per cent to 3,898; and days on market to sell fell by 17.78 per cent to 37.
CREB said the benchmark price, which is a look at typical properties that have sold, was $417,300, up 7.63 per cent from last year.
Fotiou said the median and average sale prices were the highest ever for the month.
The record for most sales in the month was set in 2005 at 2,326, he said.
Fotiou said August had 64 sales in the $1-million plus price point, doubling last year’s total and a 68 per cent increase from the previous August record set in 2007.
At the end of August, year-to-date, there have been 524 luxury home sales compared with 370 for the same period last year, said Fotiou. In 2012, the annual record for luxury home sales was set at 544 transactions.
Grace Yan, a realtor with RE/MAX Real Estate (Central) in Calgary, said the real estate market rapidly changes from week to week.
“It is currently quite a strong sellers’ market. We are seeing properties go on the market then within a day will be sold with competing offers and at times I have seen properties that have gone competing offers and sold for $100,000 over list price,” she said, adding good properties that are listed at market value are sold quickly.
“We are finding that the market is currently buoyant due to the small ratio of listings. We still have quite a few people relocating to Calgary due to a strong job market and strong economy. Prices continue to rise as there is currently high demand and low supply of housing inventory. So when those good properties come on the market they are being snapped up fast.”
Richard Cho, senior market analyst in Calgary with Canada Mortgage and Housing Corp., said many existing homeowners have taken advantage of the rise in home values by selling their house and using the equity gains towards a luxury home.
“In addition, rising incomes and relatively low mortgage rates have also helped buyers purchase higher-priced homes,” he said.
Becky Walters, CREB’s president, said sales have been limited by the need for more resale listings.
“However, August did see more new listings than last year, giving buyers more choice,” she said.
Ann-Marie Lurie, CREB’s chief economist, said housing demand has been supported by another year of strong migration levels, improving employment and wage growth.
The booming market was punctuated by another first near the end of the month. Last Friday, 12 luxury homes ($1 million plus) sold in Calgary — the most ever for a single day, according to Mike Fotiou, associate broker with First Place Realty in Calgary.
According to the Calgary Real Estate Board, total MLS sales for August of 2,196 in the city were up 27.53 per cent from last year; the average price rose by 8.80 per cent to $453,752; the median price increased by 6.40 per cent to $399,000; new listings were up by 7.39 per cent to 2,774; active listings were down by 24.81 per cent to 3,898; and days on market to sell fell by 17.78 per cent to 37.
CREB said the benchmark price, which is a look at typical properties that have sold, was $417,300, up 7.63 per cent from last year.
Fotiou said the median and average sale prices were the highest ever for the month.
The record for most sales in the month was set in 2005 at 2,326, he said.
Fotiou said August had 64 sales in the $1-million plus price point, doubling last year’s total and a 68 per cent increase from the previous August record set in 2007.
At the end of August, year-to-date, there have been 524 luxury home sales compared with 370 for the same period last year, said Fotiou. In 2012, the annual record for luxury home sales was set at 544 transactions.
Grace Yan, a realtor with RE/MAX Real Estate (Central) in Calgary, said the real estate market rapidly changes from week to week.
“It is currently quite a strong sellers’ market. We are seeing properties go on the market then within a day will be sold with competing offers and at times I have seen properties that have gone competing offers and sold for $100,000 over list price,” she said, adding good properties that are listed at market value are sold quickly.
“We are finding that the market is currently buoyant due to the small ratio of listings. We still have quite a few people relocating to Calgary due to a strong job market and strong economy. Prices continue to rise as there is currently high demand and low supply of housing inventory. So when those good properties come on the market they are being snapped up fast.”
Richard Cho, senior market analyst in Calgary with Canada Mortgage and Housing Corp., said many existing homeowners have taken advantage of the rise in home values by selling their house and using the equity gains towards a luxury home.
“In addition, rising incomes and relatively low mortgage rates have also helped buyers purchase higher-priced homes,” he said.
Becky Walters, CREB’s president, said sales have been limited by the need for more resale listings.
“However, August did see more new listings than last year, giving buyers more choice,” she said.
Ann-Marie Lurie, CREB’s chief economist, said housing demand has been supported by another year of strong migration levels, improving employment and wage growth.
“Last year’s mortgage rule changes did not reverse the sales growth in our city, but did redirect demand to more affordable product,” she said. “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.”
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
mtoneguzzi@calgaryherald.com
Twitter.com/MTone123
© Copyright (c) The Calgary Herald
