On the heels of a strong year of sales growth, January sales in the city of Calgary totalled 1,440 units, a 17 per cent increase over the previous year. Sales growth continues at the double digit pace seen over the later portion of 2013, mostly due to the gains in the condominium sector. While these are the highest January sales levels since 2008, total sales transactions are in line with long-term trends.
Consumers looking for more affordable product turned to Calgary’s condominium market, which was the only sector to record growth in new listings, compared to January 2013. The improvement in listings helped ease some of the tightness in the condominium market, however overall conditions continue to favour the seller.
The single family sector lost momentum with new listings recording an eight per cent year-over-year decline.
Overall market conditions continue to remain tight with months of supply remaining below two months.
Two consecutive years of strong migration levels are expected to support improving housing demand this year, but at a slower pace, with no significant change in the supply situation this month, prices continue to rise at higher than expected levels.
The unadjusted single family benchmark price was $476,700 in January, a 0.95 per cent increase over the previous month and a 9.1 per cent increase over the previous year. The availability of lower price single-family product continues to decline, resulting in a shift in sales distribution.
While supply pressures have not yet eased in the market, it is important to note that we remain in one of the traditionally slower months of activity in our housing sector as many consumers are waiting for the more robust spring market.