Calgary Real Estate July 2012 Monthly Housing Statistics
CREB reports that Calgary continued to go against national trends during the month of July. Although the country's two largest cities of Vancouver and Toronto experienced a decline in home sales activity, Calgary continued to experience record improvements in terms of sales and prices. In all, a total of 1,936 residential units were sold in Calgary in the month of July, representing a 21.3 percent increase when compared to the same time in 2011.
When examining year-to-date data, the City of Calgary has enjoyed a total of 13,684 sales. These figures represent a 16.5 percent increase when compared to 2011. Specific sectors within the city limits have also experienced a significant amount of growth. While the condominium apartment market enjoyed a 9.4 percent year-to-date increase, the single-family market experienced 18.9 percent in gains.
After falling short in terms of sales activity since the recession, the recent growth and upward trend puts the Calgary housing market in a good position for continued growth. Not only is the current housing growth consistent with long-term trends, but the growth has been supported by economic growth within the region. With Calgary being the "energy capital" of Canada, the city has enjoyed growth in full-time employment and migration.
Although consumers have been understandably cautious since the recession, housing sales have been improving considerable. Not only had consumer confidence been building, but home prices are still well below peak and interest rates remain favorable. As such, it is a good time to buy for those who are in the position to do so.
In terms of listings, there are currently 3.1 percent fewer condominium apartment listings and 7.5 percent fewer single-family listings when compared to July 2011. As a result, the area has started to enjoy more balance between supply and demand. This increase in balance is largely due to the fact that consumers have delayed adding new listings to the market. While there are many reasons for this delay, the primary cause is likely due to the tighter mortgage rules and the tighter supply, which is forcing those who are interested in "moving up" to reevaluate their financial situation. This may causes some to delay putting their homes on the market, thereby creating a cyclical reaction. If supply levels continue to remain low, CREB predicts consumers will turn to the new home market.
Overall, single-family inventory levels dropped by nearly 20 percent when compared to June 2011. This lower inventory combined with the increase in sales has resulted in impressive price gains. In July, the single-family benchmark price increased by 7.8 percent to $432,400 when compared to 2011. Both the townhouse and condominium apartment market experienced a 2 percent year-over-year benchmark gain.