The 2014 Calgary real estate market has started with signs of renewed upward momentum from last year’s increasing home prices. The upsurge in prices is attributable to declining Calgary MLS listings and sustained high demand for homes for sale.
The beginning inventory of MLS Calgary listings for single-family homes this year is 1,515, the lowest level to start a year since 2006. In a decade, it is also the second fewest active Calgary MLS listings to start a year.
According to an associate broker at First Place Realty, Calgary’s overall real estate market started this January with 2,236 active listings, a decrease of 17.9% from the previous year. Last year started with 2,722 active MLS Calgary listings in January, or 31.8% lower than the 3,989 homes for sale at the start of 2012.
As of January 5, Sunday, Calgary Real Estate Board (CREB®) reported on the city’s total active MLS listings at 2,302, a decrease of 17.46% from the previous year. For single-family homes, the inventory declined 18.39% to 1,549.
The Calgary housing market ended the year 2013 with all-time high average sale price records for single-family homes at $517,887 and total MLS at $456,703. Real estate prices are pushed higher since Calgary MLS listings are down, while demand in Calgary homes sustained its increase.
The Calgary real estate market has overcome inventory oversupply after the 2008 real estate boom. Speculators who were anticipating higher prices went owning multiple properties. The strong level of migration to Alberta in the past few years resulted to a high demand for Calgary housing. Despite the influx of new listings, the inventory level in the Calgary real estate market remains low due to strong sales in Calgary homes.
The chief economist at Calgary Real Estate Board (CREB®), Ann-Marie Lurie, said it’s too early to conclude on the trend in sales and listings for the month of January. She said the trend last year was a higher level of new listings in the second half the year.
An increasing concern would arise if both active Calgary MLS listings and new listings would decline. However, at present, new listings have started to increase, making an improvement in the previously declining active listings. A real estate market easing has taken place to release the market pressure.
Lurie said historical figures show that active listings still trend higher than the low levels duiring the 2006 Calgary real estate boom. Whether a continued decline in inventory will be seen in 2014, depends on a rise in new listings.
Posted by Ross PAVL on