Improving inventories help ease price growth pressure
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,” said CREB® chief
economist Ann-Marie Lurie. “Employment opportunities and relatively
higher wages have encouraged people to move here, supporting the demand
growth in our housing sector.”
Meanwhile, new listings growth continues to outpace the
gains in sales, supporting a 22 per cent year-over-year rise in
November inventories to 3,849 units. While inventories have recorded significant
gains, they remain below long-term averages for the month.
“Over the past year, inventories have been low in the
city, limiting some of the choice for consumers,” said CREB® president
Bill Kirk. “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,” said Kirk. “In the single-family sector, however, declining
supply in that same price range has created much tighter market
conditions in that segment.”
Single-family sales totaled 1,181 units in November, a
one per cent year-over-year decline. Meanwhile, year-to-date activity
totaled 16,481 units, a 6.2 per cent increase over the previous year.
New listings, in comparison, increased 5.9 per cent to 23,207 units
over the same time frame.
November also showed easing growth in single-family
unadjusted benchmark prices, totaling $511,300 in November—an 8.7 per
cent increase over the previous year. While year-over-year price gains
remain strong, price growth has slowed from the double-digit rates
posted earlier in the year.
Meanwhile, unadjusted benchmark prices for condominium
apartments and townhouses totaled a respective $300,700 and $338,600.
Like the single-family sector, both condominium sectors have seen price
growth ease from double-digit levels. However, it was only this past
June and September that saw condominium apartment and townhouse prices
recover from previous highs.
“Tight market conditions earlier in the year caused
significant aggregate price gains,” said Lurie. “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
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