May Market Update
“We’re back to normal levels of activity,” said Becky Walters, president of CREB®’s board of directors. “Last spring was the first time since the recession that we saw more typical levels of sales, and this spring sales recorded further growth.”
Monthly sales in Calgary have improved since the previous year, mainly due to an increased demand in the condominium market. All categories of sales activity have totalled 2,544 units for the month, a 7% increase from May 2013 figures.
Calgary’s sales growth has exceeded expectations, although the rate of increase has slowed from 2012’s double digits. Due to less than normal new listings at a time when sales volumes are increasing, it creates a downward pressure on inventory levels making them 17% lower than the 2012 recordings. Both of these factors create a market that is favouring the seller, causing stronger than expected price growth.
“Buyers need to have financing in place so they can act quickly when they see the right property,” Walters said. She added that buyers also need to have a clear sense of what they can afford and what they are prepared to pay before entering negotiations. In May, Single family sales totalled 1,766 units. 3% higher than levels recorded in 2012. Although sales volumes are constant with long-term averages the decline in new listings has hampered sales growth, especially in the lower price ranges.
The unadjusted benchmark single-family price totalled $456,900 in May, a 7% increase over 2012 and a 1% increase from April 2013. After the first five months of the year, condominium apartment sales totalled 1,672 units, a 10 % increase over the same time of the previous year. With less supply relative to demand in resale, condominium prices are on a path to recovery. In May, the benchmark price for condominium apartments totalled $263,600, a year-over-year increase of 7%. Condominium town homes reached a benchmark price of $292,100, a 5% increase over the previous year.