Record Breaking June for Calgary Real Estate Market
Despite the impact of the flood disaster, the Calgary residential real estate market experienced another record breaking month!
Home sales activity for the month of June exceed expectations once again, with the Calgary real estate market continuing to pick up strength. Total residential sales for the month of Calgary came to 2,317, a 5 % increase over the 2,196 sales from June 2012. The average sales price of a Calgary home finished at $466,458, a 5.60% increase from June 2012. This surpasses the previous record average sales price which was recorded in May this year, at a price of $462,076.
The Calgary single family average price also hit a new high at $527,161, beating May’s record of $521,887. The number of new listings dropped once again to 3,003, a 9 % drop from the inventory of new listings in June 2012.
With high sales and low inventory, this is turning the Calgary real estate market in to a sellers market. With the low inventory we are seeing more buyers purchase homes immediately and for higher prices, to prevent them from losing a desirable home in a competing offer situation. Calgary condo sales surpassed single family home sales as the lack of affordable single family homes are driving many buyers to the more affordable condo market.
Despite the success in the market, it’s expected that the recent flood crisis will impact the Calgary real estate market dynamics. We are expected to experience this impact over the next couple of months as communities affected by the floods will face serious challenges. However, it is too soon to tell exactly how much the market will be impacted.
Anne- Marie Lurie, CREB® chief economist, had this to say about she feels the Calgary flood crisis will affect the real estate market in the upcoming months.
“While sales and prices continue to show improvement, the city and residents of communities impacted by the recent flooding will face significant remediation challenges over the coming months,” said Ann-Marie Lurie, CREB® chief economist. “Until the extent of the damage is known, it is difficult to accurately assess the full impact this will have on the city’s housing market.”
“In the coming months, flood victims, particularly those who were planning on selling their homes, will have some big decisions to make,” said Becky Walters, CREB® President. “Will they take a discounted price? Or will they stay and fully remediate the property? Either way, in the short term, housing supply will likely be relatively tight.”
“The tighter market conditions are placing upward pressure on pricing in all city sectors,” said Lurie. “While the areas affected by the flood may face some short-term impacts on pricing, any adjustments occurring are unlikely to outweigh the impacts on the overall city wide price growth.”
To view the Calgary Market Statistics Package from CREB® please Click Here
If you are considering selling your Calgary home and want take advantage of this sellers market or if you are interested in buying a Calgary property before the prices increase higher, please Contact Us today! We are the Home Sweet Home Team and we are here for YOU!