March MLS sales set new standards as inventory remains low
A continued low inventory of listings combined with strong homebuyer demand pushed prices in Calgary’s resale housing market to all-time highs again in March.
Calgary Real Estate Board statistics released Tuesday indicated MLS records, for any month, were set for average sale prices and median prices in the overall city residential market as well as in the single-family category.
In the city, the overall average sale price in March was $484,918, up 5.18 per cent from last year, while the median price was rose by 6.90 per cent to $430,800. For the single-family market, the average sale price climbed by 7.32 per cent to $556,402 and the median price was up by 8.89 per cent to $490,000.
March registered 2,485 sales in the city which was the highest March total since 2007. Sales were up 17.94 per cent from last year.
“The amount of inventory is quite low in most communities within Calgary and demand remains high. Buyers are having to make extremely quick decisions as there is a high likelihood they will be in a multiple offer situation,” said Tanya Eklund, a realtor with RE/MAX Real Estate (Central). “Trying to find land to build on is one of the tightest markets right now due to the amount of new builders that have come into the inner city.
“Calgary real estate as a whole is not as tight as it was in 2006, however we are seeing homes in many areas of the city sell over list or close to list price. I do not have a crystal ball but I do suspect our market will remain strong into the second quarter of the year. My hope is the gap between supply and demand will become less. Having more supply, which statistically we do in the spring market, will give buyers more selection to choose from and not have to make same day decisions.”
The March record prices eclipsed the previous records set in February which were: $482,745 average sale and $424,900 median for the overall city; and $550,376 average sale and $480,000 median for single-family homes.
March was the 26 consecutive month of year-over-year average sale price growth and the 12th consecutive month of annual sales growth.
At the end of March, active listings in the city were down 19.35 per cent to 3,231 compared with last year. There were 3,319 new listings in the month, up 3.98 per cent from a year ago.
According to Mike Fotiou, associate broker with First Place Realty, the month also was a record one for luxury home sales with 79 properties selling for $1 million or more. That’s up from the previous record of 74 set last year and just four shy of the all-time monthly record of 83 which was established in May of last year.
Also, the first three months of this year set a record for most luxury sales in a first quarter of a year at 186, up from 171 for the same period last year.
“There seems to be a lot of positive buzz with Calgary’s economic state,” said Eklund. “With an unemployment rate of 4.8 per cent, under 1.5 per cent (rental) vacancy and record migration into the city, it appears that Calgary is a prime city to work and live. All of these factors contribute to our current strength in the Calgary real estate market and why sales are increasingly strong.
Single-family home sales rose by 14.87 per cent in March to 1,699 MLS transactions.
In the condo apartment category, sales of 445 were up 28.61 per cent from last year. The median price rose by 10.04 per cent to $285,000 while the average sale price was up by 3.22 per cent to $311,075.
In the condo townhouse sector, sales were up 20.92 per cent from last year to 341 units while the median price rose by 7.33 per cent to $323,000. However, the average sale price was down by 0.04 per cent to $355,617.
The towns surrounding Calgary saw sales spike by 35.71 per cent to 494 transactions. The median price increased by 9.19 per cent to $383,250 while the average sale price was up by 7.63 per cent to $392,572.
Jim Dewald, dean of the Haskayne School of Business at the University of Calgary, said so much of real estate is driven by the perception that the market is tightening or that prices are going up.
“There’s so much speculation always built into housing,” he said. “And there seems to be a feeling right now that inventories will only continue to tighten which will push prices up and now it’s more affordable than ever because mortgages are even going lower which is shocking to most people. I think there’s so much pressure because there’s a sense that prices are going to go up, get in there now.”
But Dewald cautioned that he is not seeing the foundational statistics in terms of employment growth that would sustain the “kind of anxiety that’s out there.” He also said inventories could change the market conditions.
“I don’t know if it’s wise to anticipate that prices will continue to go up because the supply side could change in the next few months,” said Dewald.
Average Price of single family homes in Calgary:
By Mario Toneguzzi, Calgary Herald
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