Calgary housing market booming in August

By Mario Toneguzzi, Calgary Herald September 3, 2013

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.

Preliminary figures by the Calgary Real Estate Board show 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 24.80 per cent to 3,896; and days on market to sell fell by 17.78 per cent to 37.

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.
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. In 2012, the annual record for luxury home sales was set at 544 transactions.

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. 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.