Improved activity across all sectors
Calgary, May 1, 2012– For the month of April 2012, year-over year sales activity improved across all sectors in the city. Calgary residential sales total 2,200 for the month, a 26 per cent increase over levels recorded last year.
"The growth in full-time employment, combined with improving migration levels, is translating into improved demand for hous-ing," says Ann-Marie Lurie, CREB® chief economist. "While sales growth does seem exceptionally strong, it is important to keep in perspective that the sales activity in Calgary is returning to levels more consistent with the long-term average."
The single-family market continues to tighten, with months of supply dropping below three months. Sales growth continues to out-pace new-listings activity, placing downward pressure on inventories. As the market tightens, single family homes are selling quick-er, and there has been some upward pressure on pricing. The MLS® Home Price Index for the month of April recorded a year-over-year price increase of 5.5 per cent for a total benchmark price of $449,500.
While the balance between demand and supply in the single family market has shifted towards sellers’ territory, there are several components that make today’s market different from five years ago. The main difference is there is still significant supply for con-sumers in surrounding towns and the condominium market in the city, and the new-home builders do have the ability to absorb some of the excess demand.
After the first four months of the year, the condominium apartment sales totaled 1,133, a 2.2 per cent increase over the same peri-od last year. Tighter supply in the single-family market has translated to improved demand for condominium apartments, and con-sumers active in this market have a sufficient amount of supply and new listings to choose from.
New condominium apartment listings for the month of April rose by 5.9 per cent compared to last year, and remain at similar levels on a year-to-date basis. As the gap between inventories and sales narrows, the months of supply continues to trend toward levels that are more consistent with a balanced market.
While the condominium apartment market moved into more balanced territory, index prices remain relatively unchanged. The condominium townhouse market is trending in a similar fashion to the single family market, and recorded a year-over year index price increase of 2.7 per cent. Overall for the month of April, the condominium townhouse and apartment markets recorded a benchmark price of 294,500 and 248,300, respectively.