Calgary’s residential resale housing market posted relatively strong November activity reaching 1,782 units, a three per cent increase over the previous year, and nearly 13 per cent above long term averages.
Relative to other major centres, economic growth in Calgary remains one of the strongest in the country. Employment opportunities and relatively higher wages have encouraged people to move here, supporting the demand growth in our housing sector.
Over the past year, inventories have been low in the city, limiting some of the choice for consumers. While availability in specific segments and price ranges vary, on the whole, the recent rise in inventories will be welcome news for many buyers.
As in previous months, November saw double-digit growth in year-to-date sales for all property types. However, the strongest gains were in the condominium apartment and townhouse sectors with a combined growth of over 19 per cent. When comparing year-to-date sales figures, both condominium sectors are currently at record levels.
Overall, buyers looking for product under $400,000 will find more options in the condominium sector because supply levels have improved. In the single-family sector, however, declining supply in that same price range has created much tighter market conditions in that segment.
Tight market conditions earlier in the year caused significant aggregate price gains. It also resulted in a rise in new listings, supporting gains in inventory levels, and a push towards more balanced levels. This has helped ease the upward growth pressure on prices.
While Calgary’s price gains have garnered a significant amount of national attention, several indicators are pointing toward more stable conditions, easing risk associated with an overheating market.