Calgary, May 1, 2013 – The benchmark price of single-family homes reached a new high of $452,900 in April, as market conditions that favour the seller finally drove prices above the unadjusted peak of 2007.

“It’s really encouraging to see that the Calgary market remains strong,” said Becky Walters, president of CREB®’s board of directors. “It’s reassuring to both buyers and sellers to see that this area is outperforming many parts of the country.”

Single-family sales totalled 1,611 in April, nearly two per cent higher than the previous year, but year-to-date figures are similar to levels recorded in 2012. Sales growth in the first part of the year was stifled by a shortage of new listings and inventory. However, the year-over-year increase of 6.2 per cent helped support sales growth in April.

“Declining selection in the lower price range and market conditions that favour the seller in the overall single-family market has resulted in a boost in demand in the condominium market and surrounding towns,” said CREB® chief economist Ann-Marie Lurie. “Inventory levels declined across all of these segments. However, surrounding towns remain in balanced territory, as they experienced the effect of previously elevated inventory levels.”

After the first four months of the year, condominium apartment sales totalled 1,258 units, an 11 per cent increase over the previous year. Sales growth outpaced the number of new listings, causing inventory levels to decline to 893 units. This pushed the market toward a sellers’ market.

Tighter market conditions supported a year-over-year benchmark price growth of 7.35 per cent. Unlike the single-family sector, however, condo apartment prices remain well below unadjusted highs recorded in 2007.

Walters said a move to a sellers’ market will encourage those who have been waiting for price recovery to put their homes on the market. This, in turn, will provide more choices for buyers.

“New listings have been declining for the last few years as prices had not recovered,” she said. “People who did not have to sell chose to hold off. Price improvement can encourage new listings, easing some of the tension on the supply levels.”

There were 3,497 new residential listings in the city, an eight per cent increase relative to 2012. Sales activity also increased to a total of 2,376. Residential year-to-date sales improved by nearly four per cent compared to the same time in 2012. Meanwhile, citywide benchmark prices totalled $406,000 a seven per cent rise over the previous year.

“Calgary’s housing market continues to defy national softening trends as gains in the employment sector, migrant growth, rising wages and low interest rates are translating into growing demand for housing,” Lurie said.

For the first time since 2007, conditions favour the seller. However, economic conditions today are vastly different, making it unlikely that Calgary will see a repeat of those conditions, Lurie said. Our economy faces some challenges this year, and consumers still have options in both the new home market and surrounding towns, all factors that will temper price growth

Calgary, August 1, 2012 – Calgary continues to buck national housing sale trends. The 1,936 residential units sold in July represent a 21.3-per-cent increase over 2011.

“Recent mortgage rule changes prompted much discussion of a national housing correction. While the two largest cities (Vancouver and Toronto) have started to witness declines in home sales activity, Calgary continues to record improving sales and prices,” says Ann-Marie Lurie, Chief Economist for CREB®.

“The gains were supported from the economic growth in the region,” Lurie says. “Last year, Alberta led the country in economic growth and – with Calgary being the energy capital of the country – the city has benefited from growth in full-time employment, migration and overall improved confidence.”

Year-to-date City of Calgary sales totaled 13,684, a 16.5-per-cent increase over the same time in 2011. Other sectors within the city limits have also recorded significant growth. The single-family market recorded the largest gains at 18.9 per cent, while the condominium apartment posted a 9.4-per-cent rise year-to-date.

“The housing growth positions us with sales activity that is more consistent with long-term trends, of which we significantly fell short of since the recession,” says Bob Jablonski, President of CREB®. “Consumers have been cautious of the housing market coming out of the recession, but housing sales have improved considerably, driven by home prices that are still below peak, favourable interest rates and bullish forecasts on the local economy,.”

Consumers have delayed adding listings to the market, and, as a result, there are 7.5 per cent fewer single family listings and 3.1 per cent fewer condominium apartment listings, compared to this July 2011. July sales activity showed seasonal slowing over June’s level, providing some relief on the balance between supply and demand. Citywide months of supply trended upwards towards 3 months.

With tighter mortgage rules and tighter supply, consumers planning on “moving up” may be forced to revaluate what is within their budget. This may cause some homeowners to delay listing their homes, contributing to the diminished number of listings. However, if supply levels remain low, this will encourage consumers to turn toward the new home market.

Single family inventory levels were 3,646 units in June, nearly 20-per-cent lower than supply levels recorded in 2011.

Lower inventory, combined with increased sales, has resulted in stronger-than-anticipated price gains. The single family benchmark price reached $432,400 in July, a 7.8-per-cent increase over 2011, but on average only 5 per cent higher on a year-to-date basis. The increase in price has narrowed the variance from the peak of the market, but a 4-per-cent price gap remains.

Both the condominium apartment and townhouse market recorded year-over-year benchmark price gains of 2 per cent in July, for respective prices of $247,600 and $277,400.

“While the economic risks continue to weigh on the market, many consumers continue to see employment opportunities in the city,” says Lurie. “They have a better sense of job security and are taking advantage of a stable housing market.”

Calgary, July 3, 2012 – Residential sales in the City of Calgary totaled 11,752 for the first half of this year, a 16-per-cent increase over the same period last year. The rise in sales has brought activity levels closer to long-term trends in the city.

“Recent mortgage rule changes may dampen some of the gains in the resale market,” says Ann-Marie Lurie, CREB®’s chief economist. “But this is not expected to cause a full reversal of either sales or price growth, provided the global economic situation does not significantly worsen.

“Our housing market is returning to normal levels of activity, supported by the improvements in our employment sector and rise in migration.”

Single family monthly sales reached 1,609 units in June, a decline over the previous month, but 16 per cent higher than levels recorded in June 2011. However, new listings are declining as consumers appear to delay putting units on the market until they see further price recovery. Despite the decline, with a current inventory of 3,817, the supply constraint has eased and the single family market is moving towards more balanced levels.

“Overall, the Calgary market is trending towards long-term stability,” says Bob Jablonski, president of CREB®. “Activity levels are consistent with our expectations, and are not demonstrating an overheated market. We’ve seen a slight lack of supply in single-family homes, but this is not the case in the broader residential market, including surrounding towns.”

The single-family benchmark price for the month of June 2012 was $430,800, a 7.3-per-cent increase over the previous year. Year-over-year price increases have been particularly strong in the recent months, in part due to the decline in months of supply. As the city moves towards balance, we can expect price growth to ease in following months.

“Homebuyers are confident about the long-term prospects in our city, and continue to search for homes in those communities that align with their needs,” Jablonski says. “People who are in the market to buy right now have to make their decisions quicker, but they are well informed and they continue to seek out value for their money.”

While June sales activity showed a modest improvement over last year, year-to-date condominium apartment sales totaled 1,858, a 7-per-cent increase over the first half of 2011. Both monthly and year-to-date sales remain consistent with long-term trends. The rise in sales over the first half of the year combined with a decline in listings helped reduce the excess supply. With supply hovering just above three months, the condominium apartment market remains in balance.

The condominium-apartment market recorded a modest improvement in pricing, with a benchmark price of $246,300 in June 2012, a year-over-year price gain of 1.5 per cent. The condominium-townhome benchmark price grew by 3.3 per cent over 2011, and is now $278,000.

“Recent reports have mentioned an overvalued Canadian housing market, and it is important to note that the Calgary market has already recorded a correction,” says Lurie, who notes benchmark prices in the entire CREB® residential market remain 8 per cent below peak levels. “Alberta was slow to recover from the recession, but this year our province is expected to lead the country in economic growth. This growth will continue to support gains in full-time employment and encourage positive momentum in our local housing market by way of both demand and price recovery,”