Calgary Real Estate December 2012 Monthly Housing Statistics
Based on the most recent data, many experts are ready to declare that Calgary's housing market has started to recover. While prices are still falling short of reaching the highs they attained in 2007, the sales volume was up by 15 percent when comparing 2012 to 2011 statistics.
While new listings fell by seven percent when comparing 2012 to 2011, growth was experienced in nearly every other area of the housing market. Single-family homes, for example, increased by 15 percent, representing a pace that was much faster than the total condominium market within the city. As a result, the single-family home inventory has fallen significantly, resulting in an increase in prices. Although prices in most communities remain below their 2007 levels, the price spread is expected to shrink as market conditions continue to foster increased growth.
For the month of December, the unadjusted single-family benchmark price was $434,800, representing an 8.7 percent increase when compared to 2011. Prices are also up by seven percent when compared to 2011, though they are still two percent below the high that was achieved in 2007.
As the price continues to go up on single-family homes, more consumers are turning to condominiums. As such, sales are also improving in this area. Condominium apartments have enjoyed a 12 percent increase when compared to last year, while townhouse condominiums increased by 16 percent. The number of listings, on the other hands, is falling in both sectors, resulting in balanced market conditions.
While condos are seeing an increase in sales, price growth is not increasing as steadily as it has been within the single-family home market. In December, condominium benchmark prices reached $248,700, representing a 5.4 percent increase when compared to the previous year. Furthermore, annual average benchmark increases were at just two percent.
A number of factors have contributed to Calgary's strengthening housing market, but growth within the energy sector has been the most significant factor. With the employment opportunities available within the city, more people are interested in purchasing a home in Calgary. While the pace of migration is expected to slow down somewhat in 2013, the trend is expected to continue. Experts further predict that Calgary's 2013 housing sector will grow in the number of sales as well as in price.
Although employment opportunities within the energy sector have helped Calgary recover much faster than the national recovery rate, experts are not worried about developing an overheated housing market. This is largely due to the fact that the natural gas sector is expected to remain weak, while the oil sector is likely to continue to take a cautious approach with expansion.