Calgary housing affordability easing 

Sharp rise in household income helping

By mario toneguzzi, Calgary Herald October 29, 2013

 

 

 

CALGARY - A sharp rise in average household income is keeping Calgary house price affordability in check, says a new report released Tuesday by Desjardins Group Economic Studies.
The report’s affordability index showed that it is only slightly under the historical average in Calgary, despite relatively high home prices of $438,793 in the third quarter.
It said the average household income of $110,000 “makes home purchases easier” in Calgary.
But the report said the Canadian housing market is now less affordable than it has been on average for the last 25 years.
“This decline stems from average home prices outpacing household income in the third quarter as well as a small hike in mortgage rates,” said the report.
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Housing Market Surrounding Calgary is Booming

Housing market surrounding Calgary is booming: CREB

Airdrie, Cochrane and Okotoks record highest third quarter sales activity

By Mario Toneguzzi, Calgary Herald October 8, 2013

 

 

 

 

Housing sales in the markets outside of Calgary are booming this year.

Photograph by: Grant Black , Calgary Herald

CALGARY — The resale housing market outside of Calgary is booming these days.
The Calgary Real Estate Board reported Tuesday that Airdrie, Cochrane and Okotoks all recorded the highest third-quarter sales activity on record, mostly as a result of gains in the single-family homes sector.
“Affordability and lifestyle preference play a significant role for consumers considering surrounding communities,” said Becky Walters, CREB’s president. “These areas tend to provide single-family homes that offer more features at a lower cost than what can be found in the city.”
The board said weaker activity in High River following the June floods did not outweigh the aggregate gains recorded in the surrounding towns. Sales in surrounding towns totalled 1,288 units, 22 per cent higher than third-quarter sales in 2012.
CREB said tight rental market conditions, combined with declining supply of affordable single-family homes in Calgary, supported growth in surrounding communities. The additional demand occurred as a result of the flood, further boosting growth in the typically more affordable bedroom communities.
“The entire region has benefited from the economic prosperity, as employment gains and stronger than expected net migration has supported housing demand,” said Ann-Marie Lurie, CREB’s chief economist. “In surrounding areas, sales growth has outpaced the level of new listings and this has placed downward pressure on inventories, while supporting price gains. However, price levels remain significantly lower than those in the city and are growing at a slower pace.”
In Airdrie, year-to-date there have been 1,058 MLS sales as of the end of September, up 13.52 per cent from the same period last year. The average price for a single-family home is $386,883, up 3.72 per cent year-over-year.
MLS sales in Okotoks of 537 so far this year represent a 12.58 per cent hike from last year while the single-family average sale price has jumped by 5.40 per cent to $437,519.
And in Cochrane, year-to-date sales of 441 are up 6.52 per cent from 2012 and the single-family average sale price has risen by 5.89 per cent to $448,257.
Year-to-date, the towns outside Calgary market has had 3,540 sales, up 10.25 per cent from last year and the single-family average sale price is up 3.53 per cent to $389,167.
In the city of Calgary, year-to-date MLS sales as of Monday were 19,091, up 9.82 per cent from last year and the single-family average sale price has jumped by 8.19 per cent to $517,860.
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Update: Calgary housing market sizzles in September (with graphic)

MLS sales and prices continue to climb

By Mario Toneguzzi, Calgary Herald October 1, 2013

 

 

 

CALGARY — Calgary’s red-hot housing market continued to sizzle in September as MLS sales and prices followed an upward trend.
According to the Calgary Real Estate Board, total MLS sales in the city of 1,923 during the month were up 19.44 per cent from a year ago.
The average sale price rose by 8.27 per cent to $454,352 while the median price was up 8.78 per cent to $402,500.
Calvin Buss, involved in real estate marketing and sales, said job creation and in-migration are fuelling the current market.
"The international in-migration is getting stronger and stronger. And if you look at the number of people that came out of Ontario over the last six months into Alberta, it’s just staggering," said Buss who has his home for sale in Edworthy Park at $4.49 million. The home is situated in the middle of a forest overlooking the Bow River and the downtown.
"In Calgary we have a tight market. We’ve had good markets over the last two years. And that’s tightened everything up. And then you get all that in-migration coming based on jobs. You start to get things really tightening up. Like the vacancy rate downtown doesn’t have any elasticity to help absorb these people so they’re forced into the marketplace. And the marketplace only has a certain capacity."
Calgary is in a sellers’ market which is good news for people like Buss who have their homes for sale.
In September, there were 2,796 new listings in the Calgary market, up 4.33 per cent from a year ago but active listings at the end of the month were down by 23.08 per cent to 3,922.

Calgary single-family homes Calgary condo apartments Calgary condo townhouses | Infographics

Scott Bollinger, broker for the ComFree Commensense Network, said the jump in prices isn’t too surprising when you look at the underlying factors, which include a tight inventory, a close-to-zero-vacancy rental market converting many would-be renters into potential buyers, and the fact the economy’s humming along.
"What is a little surprising is that the numbers of new listings aren’t keeping pace with big jumps in prices and sales," said Bollinger. "I think Calgarians know this is a seller’s market. It has been for months. So that tells me that population growth and demand are simply outpacing supply. Speculators who sat for years on second and third properties, waiting for a hot market, have already sold."
Days on the market to sell in September fell from 45 a year ago to 36, which represented a 20 per cent decline.
"The economy continues to support factors that are driving housing demand forward," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. "Employment in Calgary has trended up, with many full-time jobs also created.
"Latest reports also show that net migration to Alberta has been strong as well. After two quarters, net migration in Alberta has increased over 40 per cent from last year. Sales thus far are up compared to 2012 levels, and that is not expected to change by the end of the year."
Ben Brunnen, a Calgary economic consultant, said the local real estate market should perform well this fall with a favourable economic outlook, a tight rental market and strong population growth the key factors.
"Alberta has been one of the most resiliant economies in Canada, and this gives buyers confidence," said Brunnen.
"At the same time, supply remains tight with limited inventory to meet demand and builders trying to catch up. For the economy as a whole, strong real estate prices give homeowners confidence, and this could help boost consumer spending in Alberta."
CREB said single-family home sales in September of 1,354 were up 20.25 per cent from last year while the average price rose by 9.25 per cent to $512,359. Condo apartment sales increased by 17.39 per cent to 324 with the average price up by 4.38 per cent to $298,765. Condo townhouse sales were up 17.79 per cent to 245 while the average sale price increased by 2.95 per cent to $339,534.
"Tight market conditions have supported price growth in the Calgary market," said Ann-Marie Lurie, CREB’s chief economist. "But the pace of unadjusted monthly growth has eased in September.
"While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year."

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