Calgary Housing Market Continues to Trend Toward Long-Term Stability
The Calgary real estate market enjoyed a significant amount of growth during the month of June. Whether comparing year-over-year statistics or analyzing June's figures compared to May, the Calgary housing market appears to be returning to normal levels of activity.
According to the latest CREB statistics, residential sales in Calgary totaled 11,752 for the first half of the year. This represents a 16 percent increase when compared to the same period last year. In June, a total of 1,609 single-family homes were sold. While this does represent a decline when compared to May, it is 16 percent higher than June 2011.
Despite the increase in sales, the report found that consumers are waiting to put their homes on the market. More than likely, this is because consumers are waiting for further price recovery progress. Still, despite the decline in new listings, the market still has an inventory of 3,817 homes. As such, the supply constraint has eased and the market is becoming more balanced.
The report also found that the single-family benchmark price for June was $430,800. These figures represent a 7.3 percent increase when compared to June of last year. The year-over-year price increase has also been strong over the past several months. This is at least partially due to a supply decline. With the market becoming more balanced, however, the price growth is expected to ease.
Condo sales have also experienced growth when examining year-over-year and monthly figures. Year-to-date condo sales came to 1,858, which represents a 7 percent increase when compared to the first half of 2011. Due to the increase in sales coupled with the drop in listings, the supply is now at just above three months and in balance.
The condo-apartment market also enjoyed modest gains in terms of pricing. With a benchmark price of $246,300 in June, the year-over-year price gain was 1.5 percent. The condo-townhome market also enjoyed gains, with the benchmark price reaching $278,000. These figures represent an increase of 3.3 percent when compared to 2011.
While some reports have referenced an overvalued Canadian housing market, the Calgary market has already started to show a correction. Overall, the benchmark price within the entire CREB residential market was 8 percent below peak levels.
With activity levels consistent with expectations, the Calgary market is trending toward achieving long-term stability. While recent changes to mortgage rules may suppress some of the resale market gains, it is not expected to completely reverse price growth or sales.