ReMax expects Calgary to stay a seller’s market

                                                                                                                                             By Myke Thomas ,Calgary Sun

Statistics Canada reports the net migration to the Calgary Census Metropolitan Area (CMA) between July 2012 and July 2013 was 45,168 people.
That number is nine months old and it’s unclear how many more people have come here since then, but what is clear is they are in a home-buying mood.
Even the lousy winter didn’t slow them down, says ReMax in its spring report.

“A brutal winter did not dissuade Calgary home buyers from entering the market, with demand far outpacing available inventory through the start of 2014,” says the report. “Calgary experienced a red-hot seller’s market in the first two months of the year, with listings 30% lower than where they would be in a balanced market.
A total of 2,393 new listings were posted in January, down 4% year over year, but February and March saw a slight uptick in inventory.

“New listings increased 1.5% year over year in February to 2,711, while 3,319 new listings were recorded in March. “Despite inventory increases, Calgary is expected to remain in a seller’s market. There were 3,233 active listings at the end of March, which is 19% lower than the same time last year. Low listings and high demand resulted in Calgary listings taking an average of 34 days to sell in March.”

At the end of March, figures from the Calgary Real Estate Board’s website show there was only a 1.3-month supply of homes listed, a dangerously low number. To the middle of April, it improved to 2.8 months, but days on the market dropped to 25.
The low inventory and shortened time to sell has changed the market dramatically from last year, says ReMax.

“Multiple offers are commonplace and tight inventory has also created a domino effect for sellers trying to find a new property before listing their own,” says the report. “Many are finding this challenging, which has further delayed new inventory from entering the market.”
Even if net migration returns to a more average level, inventory levels in all sectors need to increase to keep prices from soaring.

“With a population of over 1.1 million and more than 30,000 new immigrants every year, current inventory levels are not keeping up with buyer appetite,” says ReMax.
“Calgary’s rental market remains very tight and is doing little to satisfy demand for housing. Rental vacancies are hovering around one per cent, motivating people to buy rather than hold off from entering the market. The average Calgary home price was $484,918 at the end of March, an increase of 5% year over year."

Upward price pressure continues to be driven by inventory, low interest rates I and a robust job market.
"Economic optimism is high thanks to demand for skilled labour and prospects surrounding key pipeline projects. Skilled workers are flocking to Calgary from countries around the world, with many new residents looking to purchase a property."