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CALGARY REGIONAL HOUSING MARKET STATISTICS for April 2014

May 2, 2014

Price gains encouraging new listings
New listings improve for all product types in the city

Following a slow start to the year, improved weather and price gains supported new listings growth. New residential listings in April totaled 3,754 units, an eight per cent increase over the previous year. Meanwhile sales activity totaled 2,545 units for the month, a seven per cent increase over April 2013.
“Throughout 2014, the condominium apartment market has recorded new listing gains, while until April, the single-family sector saw a reduction in new listings,” says CREB® president Bill Kirk. “Many single-family homeowners have been waiting for further price gains and the start of the spring market to list their homes.”
Single-family sales in April totalled 1,736 units, representing a year-over-year gain of eight per cent and a year-to-date increase of nine per cent. Meanwhile, single-family new listings totalled 2,584 units in April, a 7.4 per cent increase over April 2013.
As new listing growth outpaced sales growth, inventory levels improved, easing some of the tightness in the market. However, it was not enough to push the market back into balance.
“While we did anticipate the rise in new listings this spring, certain segments of the market will likely remain tight,” says CREB® Chief Economist Ann-Marie Lurie. “The single-family market continues to record declining listings for product priced below $400,000. Meanwhile, the growth in listings in April was mostly due to gains in the $500,000 – $999,999 range.”
Condominium apartment sales totaled 449 units in April, for a year-to-date total of 1,511. April’s year-over-year sales growth of 4.7 per cent was outpaced by the 11.2 per cent rise in new listings. This resulted in a rise in inventory levels to 898 units, three per cent higher than levels recorded in 2013. It’s also the only sector within the city limits to record annual growth in inventory availability. This growth is in part related to more new home product becoming available.
“Improved selection in the market is welcome news,” says Kirk. “Many consumers are interested in entering the market but the lack of choice poses challenges. While we are still early in the season, if this trend continues, it should provide more opportunities for consumers who have been unsuccessful with finding properties.”
Price gains continued across all property types this month. The unadjusted single-family benchmark price totaled $496,700 in April, a 9.67 per cent increase over April 2013 and up 1.24 per cent over March figures. While the price gains are still higher than expected, the pace of growth has slightly eased.
Meanwhile, unadjusted benchmark prices for condominium apartment and townhouse properties totalled a respective $291,700 and $316,700 in April. Despite the year-over-year price gains of 11.6 per cent for apartments and 9.6 per cent for condominiums, prices continue to remain just shy of peak levels recorded in 2007.
“Gains in employment and net migration have supported demand growth in the housing sector,” says Lurie. However, with unadjusted prices only recently recovering in some sectors, it is not a surprise that resale supply has not kept pace. As prices continue to improve and lending rates remain low, this should help support further gains in new listings, easing some of the tightness in the market.”

Click Here to view the full .pdf with more graphs and information!

RE/MAX Spring Market Trends Report – 2014

April 17, 2014

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Click Here or follow the link to view the Full .pdf report and province breakdown!

Despite record setting low temperatures and snow storms, housing market activity in Canada during the first quarter of 2014 showed year-over-year resilience in most regions, with some exceptions in atlantic Canada, Manitoba and Ontario. In urban centres, house prices continued to post gains, in large part due to a lack of inventory; price increases were also seen in regions with strong local economies driven by the resource sector and major infrastructure development.

Potential homebuyers in Toronto and Calgary continue to be frustrated by low inventory and low affordability. In Toronto, where inventory has reached a record low, average residential sale prices increased almost 8 per cent year-over-year in march. RE/MAX is predicting a similar increase throughout the remainder of 2014. In Calgary, where a typical home spent only 34 days on the market, inventory levels were 30 per cent below the threshold of a balanced market. House prices in the region increased by over 5 per cent compared to the same period last year.

Vancouver’s balanced market posted a more modest year-over- year gain, but the average selling price of $1.36 million for a single family house has priced many buyers out of the market. Low affordability in this desirable city has prompted some innovative solutions, where we are seeing entire new lines of multipurpose furniture developed for 400 square foot studios that are selling in the $150,000 price range.

Many potential first-time buyers in Calgary and toronto have decided that purchasing a home is now more attractive given the reality of rising rents and a lack of rental selection. Both cities have extremely low vacancy rates with Toronto posting a rate below two per cent and Calgary’s renters struggling with a rate of one per cent. in both markets desirable rental properties are now attracting multiple offers, creating additional frustrations for those waiting to buy.

Harsh winter conditions and power outages delayed market activity across most of Canada, but were most notable in atlantic Canada as well as parts of southern Ontario. Looking ahead, spring sales in these regions are expected to make up for the lack of activity seen during the first two months of the year as new listings help satisfy pent-up buyer demand. For example, despite consumer confidence and a strong local economy, sales in St. John’s decreased 9 per cent year-over-year in February as they experienced one of the harshest winters on record. Southern ontario also suffered from snow storms and power outages. in Windsor, which suffered its heaviest snowfall winter since 1908, total first quarter unit sales declined 15 per cent year-over-year. However, march showed signs of recovery as unit sales were only modestly down one per cent year-over-year. This scenario is being played out in many of the markets that experienced a difficult winter.
Natural resources will continue to play a crucial role in fueling the Canadian housing market in 2014, specifically in Calgary, Saskatoon and St. John’s. in new Brunswick, Saint John buyers are waiting on announcements about pipeline and oil refinery developments that could have a transformative impact on their market.
Foreign buyers looking for investment properties or second homes have been drawn to Canadian cities for a number of years due to close social and economic ties as well as confidence in Canadian real estate. more recently, a weakened Canadian dollar has created another incentive for those buyers to invest in Canada. as the country shakes off the harsh winter, markets across Canada should see healthy activity through the remainder of 2014.

Click Here to view the full .pdf report!

2014 RE/MAX Spring Market Trends Report

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CALGARY REGIONAL HOUSING MARKET STATISTICS: Conditions continue to favour the seller…

April 2, 2014

New listings remain below expectations in the single family sector…

Click here or on the above photo to download a .pdf of the Calgary Regional Housing Market Statistics for March 2014
Residential sales activity improved across all sectors in March. However, declining new listings in the single family sector combined with further gains in sales activity decreased single family inventory to the lowest March level since 2006.
“There are several factors contributing to the growth in housing demand, including the inflow of people to our province over the past two years, strong gains in employment and tight rental conditions,” says CREB® chief economist Ann-Marie Lurie. “However, supply conditions vary amongst the different property segments, impacting the number of sales and price growth. If supply constraints persist in the single family sector, prices are expected to record further gains as we move into the spring market.”
Single family sales at the end of the first quarter totalled 3,901 units, a 9.5 per cent increase over the same period last year. Meanwhile, the amount of new listings declined by nearly five per cent. As sales growth outpaced the amount of new listings growth in the market, inventory levels dropped to just over 2,000 units.
Persistently tight market conditions prevented any relief in terms of price gains. The unadjusted single family benchmark price totalled $490,600 in March, a 9.9 per cent increase over the previous year and monthly increase of 1.6 per cent.
“With tight market conditions, particularly in the single family market, purchasers should ensure they have a clear understanding of what they can afford and what they are willing to pay for a home,” says Bill Kirk, CREB® president. “However, both sellers and buyers need to be aware that conditions are dependent on the community and price range that you are targeting.”
Condominium apartment sales totalled 1,062 after the first quarter. Sales growth was strongest in this sector due to the availability of listings. New listings after the first quarter totalled 1,722, an 18 per cent increase over the previous year. While demand continued to outpace listing growth, keeping market conditions relatively tight, inventory levels are similar to the previous year.
“Nearly 50 per cent of new listings in the apartment sector are priced in the range of $200,000 – $299,999, providing options for those looking for affordable product,” says Kirk. “However, there are far fewer options for those looking to spend less than $200,000. After the first quarter, apartment product priced below $200,000 has dropped from over 16 per cent of the market last year to 6.4 per cent.”
Condominium apartment and townhouse prices totalled a respective $287,200 and $313,100. Condominium apartment price recorded a year-over-year increase of 11.5 per cent and are the highest relative to the townhouse and single family sector. Despite strong price gains across all sectors, overall the condominium sector continues to record price levels below peak records.
“Some easing of the supply pressure in the condominium market is expected as new construction projects are completed,” says Lurie. “However, thanks to Calgary’s strong economy, it is expected that most new supply can be absorbed without risk of oversupply and condominium price correction.”

Click here to download a .pdf of the full report: Calgary Regional Housing Market Statistics for March 2014

CALGARY REGIONAL HOUSING MARKET STATISTICS – February 2014

March 3, 2014

Sales growth boosted by condominium activity
Lack of choice in single family sector impacts sale growth.

Click on the following link or on the photo above to view the .pdf of The CALGARY REGIONAL HOUSING MARKET STATISTICS for February 2014.
Following double digit gains last month, sales growth in the city of Calgary totaled 1,854 units, or an 8.68 per cent increase over the same period in 2013. Slower sales growth resulted in a reduction of listings in the single family sector. However, single family sales still totalled 1,230 units, a 1.9 per cent increase over the previous year.
“Demand growth in the single family sector has been restricted by the availability of product,” says CREB® Chief Economist Ann-Marie Lurie. “New listings in this sector fell for the second consecutive month, causing further tightening in an already undersupplied market.”
Despite the pull back in the single family sector, condominium sales continue to surge. After the first two months of the year, both condominium apartment and townhouse sales increased by 28 per cent compared to last year.
“Consumers who are in the market for single family homes priced below $300,000 do not have many options, and when product does become available, it typically does not stay on the market for long,” says CREB® President Bill Kirk. “However, nearly 54 per cent of the new condominium apartment listings this year are priced below $300,000, which is providing options for consumers looking for affordable product.”
The condominium market benefited from significant gains in new listings. Year-to-date, condominium apartment and townhouse listings improved by a respective 17 and 4 per cent for a combined total of 1,737 units.
“As we move into the spring market we expect that listings will improve in all sectors,” says Kirk. “The rise in listings will help ease some of the tightness in the market, with price growth impacts varying by community and property type.”
With no significant additions to the housing supply, resale prices continued to rise.
The unadjusted single family benchmark price totalled $482,800 in February, a 1.28 per cent increase over the previous month and a 9.1 per cent increase over the previous year.
Meanwhile, condominium apartment and townhouse prices totaled a respective $283,400 and $309,700. Condominium apartment price increases remain at double digit levels this month with a year-over-year gain of 12.4 per cent.
Despite the strong gains in condominium prices, overall benchmark prices in both the apartment and townhouse sector continue to remain below peak records set back in 2007.
“Resale market conditions have favoured the seller, and this has translated into price gains, which is strongest in the condominium sector,” says Lurie. “However, it is important to note that condominium prices have not yet risen above previous highs, whereas single family prices recovered last year.”

REAL ESTATE QUARTERLY STATISTICS…

January 28, 2014

Check out the number of resale homes sold and average sale price by district: REAL ESTATE QUARTERLY STATISTICS

CREB®'s 2014 economic outlook and housing forecast.

January 20, 2014

Chief economist Ann-Marie Lurie speaks to the highlights of CREB®’s 2014 economic outlook and housing forecast. Watch the video by clicking below or Click Here to download the full pdf of the 2014 CREB Forecast Report.

Continuing employment growth and two consecutive years of high net migration levels will underpin a 3.6 per cent growth in resale home sales in Calgary this year, with prices increasing by 4.3 per cent.
“In 2014, both sales activity and prices are expected to improve, but not at the same pace recorded in 2013,” said Ann-Marie Lurie, CREB®’s chief economist. “While factors influencing demand will support growth in 2014, new listings and increased competition from the new home sector should alleviate some of the supply pressure in the market.”
The benchmark price on single-family homes in Calgary is expected to reach $467,100, while the benchmark price on apartment condominiums and apartment townhomes will reach $381,798 and $308,690 respectively.
The report notes that homes in surrounding communities provide an affordable choice for those looking for single family product. On aggregate, 2013 annual benchmark prices in surrounding towns were $348,575 versus the $458,017 aggregate within city limits. As supply for lower priced single family declines, demand will continue to grow in surrounding communities, as buyers make lifestyle choices or seek more affordable alternatives to the city.
“Calgary and area is well positioned this year to see growth in the housing market,” said Bill Kirk, 2014 CREB® president. “Price growth in the CREB® trading area will continue to encourage sellers back into the market, pushing up the level of new listings.
“New construction is also expected to add to the housing supply, but not push us into an over-supply situation.”
Lurie noted several positive and negative risk factors could affect the way the year unfolds. For example, if net migration does not ease, expected housing supply growth will likely not meet the demand need, causing price growth to exceed expectations.
Click Here to download the full pdf of the 2014 CREB Forecast Report.

New-home construction vibrant…

January 10, 2014

Low supply of resale houses boosts demand

A series of fresh forecasts and building statistics Thursday further cemented the view that Calgary’s new home construction industry is entering 2014 on solid footing.
Statistics Canada reported the Calgary region had the highest annual rise in new home prices during November.
Its new home index showed prices in the Calgary metro area increased 6.5 per cent from a year ago. Nationally, prices increased 1.4 per cent. Separately, new reports on local building permit values and housing starts were also positive.
“For us, as a combined housing and land development company, we have had one of our best years ever in 2013,” said Lesley Conway, president of Hopewell Residential Communities, which holds significant land in southeast Calgary with houses being built in Mahogany and Copperfield. “I’m expecting more of the same going into this year.”
Population growth spurred by job growth across the region continues to push up prices and construction, said analysts, including Richard Cho of Canada Mortgage and Housing Corp.
“Supply in the competing resale market has come down, which has also boosted demand for new homes,” Cho added.
CMHC said Thursday that housing starts in the Calgary region ended 2013 slightly down from a year ago, despite an increase in singledetached home construction. Total starts for the Calgary CMA were 12,584, off about 257 from 2012. The single-detached market gained more than 440 homes from the year earlier.
“Even though there was some uncertainty and continues to be some uncertainty in the oil and gas sector … we continue to see growth, job growth and people moving here,” said Hopewell’s Conway.
“They see it as the land of opportunity coming here from other places in Canada.”
Robert Kavcic, senior economist with BMO Capital Markets, said annual housing starts in the country finished at 188,200 units in 2013, down from 215,000 the year before. It was the lowest full-year tally since 2009.
“Total housing starts in 2014 are forecast to rise, and the number of building permits we have seen thus far would suggest the same,” said Cho about the Calgary market. “We are also expecting employment and migration to continue supporting demand for new homes.”
Building permits soared in the Calgary region in November, posting one of the highest annual increases in the country, according to Statistics Canada. The federal agency said permits reached $645.2 million for the Calgary
CMA, up 75 per cent from November 2012 and 5.6 per cent on a monthly basis.
Year-to-date, residential permits in the Calgary region have risen by 32 per cent to $3.97 billion while non-residential permits are up by 36 per cent to $2.5 billion.

Mario Toneguzzi, Calgary Herald, Published: Friday, January 10, 2014

Luxury Home Just Listed in Mount Pleasant!

January 8, 2014

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Calgary home values close to boom levels, despite flood impact

January 6, 2014

CALGARY SKYLINE CROPPED 429165_10150674768322432_971485300_n

Calgary home values are nudging 2007-08 property boom levels, with sharp declines in flood-hit neighbourhoods unable to check the city’s real estate growth.

The city’s 2014 property assessments, released Friday, showed values of properties outside areas badly damaged by the June floods have risen six per cent since last year.
Citywide, the typical home is now worth $430,000, up from $410,000 in 2013.
That’s the highest level since 2008, when the boom lifted the median price to a record $447,500.
“We have certainly seen a really strong increase, and certainly a resetting of some of those values back before some of the financial crisis happened,” said city assessor Nelson Karpa.
Many communities saw assessments rise more sharply than the six-per-cent median, particularly those in northeast Calgary and those hugging Nose Hill and Fish Creek parks.
Elbow Park and Roxboro were the only neighbourhoods where assessed values dropped.
Calgary Real Estate Board (CREB) economist Ann Marie Lurie said the citywide rise was likely being led by a surge in demand for single family homes.
“A single family home under $500,000 have been selling quicker and their prices are increasing.
“We have finally pushed above those unadjusted (for inflation) levels. We’ve pushed above those peaks that we saw in 2007 (for single family homes).”
The trend was likely stronger in parts of the city which registered value increases above the six per cent average, she said.
“It could be that those areas have more homes on that lower end of the (single family) market.”
Value increases for condos and townhouses still trailed single family properties, she said, despite strong recent performance.
Price growth for single family homes in 2013 was 7.8 per cent, CREB figures showed, compared to 8.7 per cent for condos.
However, condo prices in the city took a bigger hit after the 2007 boom, Lurie said, and were yet to recover to that peak.
Calgary property taxes are based on the assessments. The city council set this year’s property tax hike at five per cent, but all homeowners whose property assessment rose by more than the six per cent average will pay a greater increase and people with lesser value rises or drops will face a lesser one.
Realtors often warn that assessments aren’t a substitute for actual market value. Assessors normally don’t visit homes, and they only consider neighbourhood home sales up to the previous June 30 — which means they’re already six months behind sales trends.
Residents and business owners can review assessments and appeal by March 4.

By Jason Markusoff and Michael Wright, Calgary Herald January 4, 2014

CALGARY REGIONAL HOUSING MARKET STATISTICS for December 2013

January 3, 2014

TIGHT MARKET CONDITIONS SUPPORT PRICE GROWTH
Sales enjoy second consecutive year of double-digit growth

Click here or on the image above to view the full report.
December’s 8 per cent year-over-year increase in sales volume in the city of Calgary capped a year that saw an 11 per cent growth in sales volume for the entire 12 months.
City residential sales totaled 1,172 units in December, bringing total sold units for 2013 to 23,489. Prices for the year were up by 8.6 per cent over 2012. “Sales growth exceeded expectations in 2013, pushing above long-term trends,” said Ann-Marie Lurie, CREB®’s chief economist.
“Two consecutive years of elevated levels of net migration, combined with an improving job outlook and confidence surrounding long-term economic prospects, supported the demand growth.”
As expected, both new listings and transactions in December eased over the previous months because it is typically a slower time of the year for sales. However, sales activity for the month was in line with long-term averages, despite poor weather conditions just before the holiday season.
“Typically, fewer sellers list their homes in December,” said Becky Walters, CREB® president. “There were more new listings this year than in 2012 because some sellers saw the continued price gains and decided it was the right time to list.”
Market conditions favoured the seller for much of 2013, causing price gains in both the single-family and condominium sectors in the city. The single family benchmark price was $472,200 in December, a 0.3 per cent increase over the previous month and an 8.6 per cent increase over the previous year. On an annual basis, unadjusted single family prices grew by more than seven per cent in 2013, exceeding previous highs.
“Prices have recovered in the single-family market, but sellers need to keep in mind there are differences between communities and types of homes,” said Walters. “Higher-end homes (priced above $500,000) have recorded slower price growth than those in the lower-price segment. And there are many communities where prices have not surpassed previous highs.”
There were 16,302 single-family homes sold in 2013, an 8 per cent increase over the previous year. Meanwhile, the 22,569 new listings were nearly one per cent higher than in 2012. Condominium apartment sales totaled 4,007 units in 2013, more than 14 per cent higher than in 2012. Condominium townhouse sales totaled 3,180 units a 22 per cent increase over 2012.
“The condominium market is more affordable than single family, and that is attractive to first-time buyers who are weighing rising rental costs against ownership costs,” said Walters. “Investors are also attracted to condos, because prices have not yet fully recovered to their previous highs.”
Condominium apartment and townhouse prices totaled $278,600 and $307,100 respectively in December. On average, annual benchmark price growth in the townhouse market totaled just more than six per cent, compared to the apartment sector increase of nearly nine per cent.
“In 2014, both sales activity and prices are expected to improve, but not at the same pace recorded this year,” said Lurie “While factors influencing demand will support growth in 2014, rising listings and increased competition from the new home sector should alleviate some of the supply pressure in the market.” Those factors, combined with potential increases in long-term lending rates, should take some of the steam off the exceptionally strong price growth recorded in 2013, said Lurie.
Click on the following link to read the full report: CALGARY REGIONAL HOUSING MARKET STATISTICS – 2013 December

Derek Thorvaldson