Calgary real estate sales are exploding despite record-low properties
Statistics released by The Calgary Real Estate Board show Calgary real estate sales are exploding, hitting a record-high last month despite historic low properties, which is driving prices even higher.
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The high sales totalling 2,729 units are thanks to a surge in the condominium market.
The market has seen some improvement since last year but the high rate of sales is offsetting any sizeable changes from the low inventory problem. Inventory levels in August were almost half what is typically available — down from 6,000 to 3,254.
CREB
“Higher lending rates have caused many buyers to either hold off on purchase decisions or shift toward more affordable products on the market,” said CREB chief economist Ann-Marie Lurie. “The challenge has been the availability of supply, especially in the detached market. Inventory levels hit record lows in August, and while new listings are higher than last year, conditions continue to favour the seller, driving further price gains.”
The average property price increased for the eighth consecutive month and is now sitting at $570,700. Row-style properties reported the largest gain.
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Sales for detached homes have increased since last year but the low amount of lower-priced homes (under $700,000) has likely prevented more sales. The average price for a detached home in Calgary is now $696,700
Inventory levels for semi-detached homes did not change much from July; however, they are still 35% below last year’s levels and are at record lows for the month. The average price for a semi-detached home is now $623,000.
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There was an increase in listings for row houses but the strong sales activity did little to influence the high sales-to-new-listing ratio. The average cost to purchase is $413,200.
August condo sales continue to rise over last month and last year’s levels. As the more affordable living option, the demand is high for condos and the sales-to-new-listing ratio sits at a whopping 98%. The average price of a condo in Calgary reached $309,100, a monthly gain of over 1% and a year-over-year gain of over 13%.