24 consecutive months of year-over-year price gains By Mario Toneguzzi, Calgary Herald
CALGARY - The momentum in Calgary’s resale housing market continued to gain steam in January with increasing MLS sales and prices reaching record levels.
The hot city residential real estate market will register in January its 24th consecutive month of year-over-year average MLS price growth as well as the 10th consecutive month of year-over-year sales growth.
Sales in January will be the highest for the month since 2008. It will also set a record for the average sale price and the median price for the month of January. Also, earlier this week, the market surpassed the previous January record of 36 luxury home sales of over $1 million set in 2007.
“Calgary’s real estate market is on track for solid growth once again this year, continuing the trend that has prevailed over the past 24 months,” said Stephanie Barber, a realtor with Discover Real Estate in the city. “I expect the number of home sales will continue to grow in 2014 given that the outlook for the jobs sector is to remain vibrant and Calgary’s population is forecast to increase by roughly two per cent.
"In addition to a resilient jobs market and net migration, other factors that should propel home prices higher in 2014 are the limited rental supply, low inventory levels and attractive interest rates.”
According to the Calgary Real Estate Board, month-to-date until Thursday, there have been 1,343 MLS sales in the city, up 16.38 per cent from the same period a year ago. The average sale price has increased by 5.02 per cent to $461,032 and the median price is up by 6.55 per cent to $415,000.
“I truly believe that inner-city real estate, neighbourhoods surrounding the downtown and within the core itself, should see the largest price increases in the coming years as people’s mindsets continue to shift towards lifestyle,” said Barber.
“Most of my clients are young professionals that work and play in the core and place a premium on their limited free time. They really value the convenience and access the inner-city communities offer over Calgary’s suburban neighbourhoods.”
Don Campbell, senior analyst with the Real Estate Investment Network, said very low vacancy rates are driving rents up quickly and this is pushing the purchase decisions sooner than is the normal trend for first-time homebuyers and recent migrants to the city.
“This purchase demand continues to grow, while listings remain low,” he said. “One big factor playing into this is the continued fallout from the floods (in June) as some banks and insurance companies are deciding that there are some neighbourhoods that they would rather not service - either not issuing mortgages or not issuing insurance coverage. This pushes demand into other regions of the city. So although listing numbers seem to be relatively flat, the reality is that a number of those homes exist in these zones of exclusion.”
He said economic confidence continues to be strong in Calgary, in general, and this always leads to consumers buying homes just a little more expensive than they would if the economy was operating at normal levels.
Tuesday, February 25, 2014
Sizzling Calgary housing market remains hot
Annual price hike the highest in Canada By Mario Toneguzzi, Calgary Herald
CALGARY - Calgary’s sizzling resale housing market is showing no signs of cooling as the city recorded the highest year-over-year hike in prices across the country in January - and early indications show February is experiencing a continued escalation in what it costs to buy a home.
The Canadian Real Estate Association released its monthly MLS data on Friday and listed Calgary as the top centre in the country for annual growth in the MLS Home Price Index at 8.98 per cent. Nationally, prices, in the 11 centres surveyed, rose by 4.83 per cent.
The city’s housing market has started 2014 with a bang. The market has not slowed down at all from the healthy pace it set in 2013. “We are seeing multiple offers in all price points. Obviously the lower the price point, the larger pool of buyers there is and hence a greater likelihood of multiple offers in the lower price points,” she said.
But it’s also taking place in the luxury market with 63 homes sold for more than $1 million and eight of those sales involving bidding wars, including a $3.5 million home, added Tost. “Eager buyers that want to find a home will have to make sacrifices to get to the homes the day they are listed in order to have a chance at buying the home of their dreams. While true average days on market are currently at 40 days, this is not the case in most sales,” she said. “Homes that offer a good location, in desirable areas, priced reasonably will sell in hours to a few days in the current marketplace.”
In January, CREA said Calgary MLS sales of 1,802 were up 14.6 per cent from a year ago while in Alberta they rose by 5.6 per cent to 3,681 transactions. Across Canada, there were 23,636 sales, up 0.4 per cent.
The average MLS sale price in Calgary in January rose by 6.0 per cent to $444,153 while in Alberta it was up 7.3 per cent to $388,073. In Canada, the average of $388,553 represented a 9.5 per cent hike from a year ago.
According to the Calgary Real Estate Board, between Feb. 1-13, there have been 794 MLS sales month-to-date in Calgary, which is up 2.72 per cent from the same period a year ago. The average sale price of $496,665 has increased by 9.35 per cent and the median price is up by 8.42 per cent to $428,250. Active listings of 2,717 are down 19.47 per cent while new listings are off by 1.57 per cent to 1,253.
Tost said in-migration to the city continues to contribute to the already busy real estate market and there is more activity from move-up buyers who have the ability to upgrade because of more equity in their homes now as the prices have gone up.
“With an estimated 30,000 people moving to Calgary for 2014 our housing market and rental markets will remain strong throughout the balance of the year,” said Tost, adding the current market is not ideal for buyers.
“It places so much stress on them to make fast decisions, life changing decisions on a 10-minute visit to look at a home. Sellers still have to be mindful when pricing their home. Smart savvy buyers won’t over pay on an overpriced home, but are more likely to bid in a bidding war on a home that seems like a fair offering.”
CALGARY - Calgary’s sizzling resale housing market is showing no signs of cooling as the city recorded the highest year-over-year hike in prices across the country in January - and early indications show February is experiencing a continued escalation in what it costs to buy a home.
The Canadian Real Estate Association released its monthly MLS data on Friday and listed Calgary as the top centre in the country for annual growth in the MLS Home Price Index at 8.98 per cent. Nationally, prices, in the 11 centres surveyed, rose by 4.83 per cent.
The city’s housing market has started 2014 with a bang. The market has not slowed down at all from the healthy pace it set in 2013. “We are seeing multiple offers in all price points. Obviously the lower the price point, the larger pool of buyers there is and hence a greater likelihood of multiple offers in the lower price points,” she said.
But it’s also taking place in the luxury market with 63 homes sold for more than $1 million and eight of those sales involving bidding wars, including a $3.5 million home, added Tost. “Eager buyers that want to find a home will have to make sacrifices to get to the homes the day they are listed in order to have a chance at buying the home of their dreams. While true average days on market are currently at 40 days, this is not the case in most sales,” she said. “Homes that offer a good location, in desirable areas, priced reasonably will sell in hours to a few days in the current marketplace.”
In January, CREA said Calgary MLS sales of 1,802 were up 14.6 per cent from a year ago while in Alberta they rose by 5.6 per cent to 3,681 transactions. Across Canada, there were 23,636 sales, up 0.4 per cent.
The average MLS sale price in Calgary in January rose by 6.0 per cent to $444,153 while in Alberta it was up 7.3 per cent to $388,073. In Canada, the average of $388,553 represented a 9.5 per cent hike from a year ago.
According to the Calgary Real Estate Board, between Feb. 1-13, there have been 794 MLS sales month-to-date in Calgary, which is up 2.72 per cent from the same period a year ago. The average sale price of $496,665 has increased by 9.35 per cent and the median price is up by 8.42 per cent to $428,250. Active listings of 2,717 are down 19.47 per cent while new listings are off by 1.57 per cent to 1,253.
Tost said in-migration to the city continues to contribute to the already busy real estate market and there is more activity from move-up buyers who have the ability to upgrade because of more equity in their homes now as the prices have gone up.
“With an estimated 30,000 people moving to Calgary for 2014 our housing market and rental markets will remain strong throughout the balance of the year,” said Tost, adding the current market is not ideal for buyers.
“It places so much stress on them to make fast decisions, life changing decisions on a 10-minute visit to look at a home. Sellers still have to be mindful when pricing their home. Smart savvy buyers won’t over pay on an overpriced home, but are more likely to bid in a bidding war on a home that seems like a fair offering.”
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