CALGARY – Calgary’s resale housing market is on pace to break the record for MLS sales during the month of September – a peak that has been in place since 2005.
According to the Calgary Real Estate Board, month-to-date from September 1-21, there have been 1,500 sales in the city, which is up 11.61 per cent from the same period a year ago.
The September monthly record was established in 2005 with 2,197 transactions. Last year for the entire month of September there were 1,919 sales, which was the second best September on record.
When a market sees record growth one should begin to understand the dynamics of Calgary including a younger educated work force, the moving up, down and sideways of the 65-80 age group, the strength of Calgary’s economy, interest rates and net migration. Low vacancy rates and a bit of a strangle hold on the developers to produce new housing and a vibrant economy are fueled by strength in the oil and gas sector. Calgarians are in a good place and are feeling confident in the real estate market.
The average MLS sale price this month of $482,113 is up 5.73 per cent from a year ago while the median price has risen by 3.58 per cent to $420,000.
New listings in September have increased by 14.03 per cent to 2,390 while active listings as of Sunday were 4,785, up 16.37 per cent from last year.
“The dramatic population growth we experienced in 2013 is now being felt in the Calgary real estate market. It usually takes 18 months for the population growth to impact a real estate sales market, but due to the very low vacancy and the continued influx of new residents, this has pushed this to a much shorter time line,” said Don Campbell, senior analyst with the Real Estate Investment Network.
Yes, the market will eventually slow a little when winter hits. However what we are witnessing here in Calgary . . . is a widening of the busiest months. It used to peak in April and May, but now due to the growth in jobs and population, the season is now encompassing March thru November. A new trend has formed and buyers and sellers alike could take advantage of the November to February lull.
Prices are being boosted by 49 luxury home sales so far this month, which surpasses every previous September month-end total except last year which set the peak at 59 transactions at the million-dollar plus level.
After two straight months of year-over-year sales declines, the single-family market is poised to break the string this month as transactions so far are 962, up 1.69 per cent from a year ago. The average sale price of $564,017 has increased by 10.1 per cent and the median price has jumped by 6.94 per cent to $481,250.
The residential market will remain strong next year. Employment numbers and wage gains are anticipated to be slightly less; if combined with possible interest rate increases, next year could mean the price gains of the past few years may not continue at the current rate and Housing prices could be more in line with inflation.
In August, Calgary recorded its 17th consecutive month of year-over-year gain in MLS sales and 31st consecutive month of annual price hikes.
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Some information here was used from a Calgary herald article by email@example.com