Demand for Calgary Residential Real Estate Market Remains High
For the first time in several years, demand in the Calgary residential real estate market has reached its strongest level. Buyer enthusiasm in Calgary real estate continues to dominate while inventory of Calgary homes for sale falls. This combination is pushing the Calgary real estate market back into the sellers territory – a turnaround not seen since 2007.
According to a recent Calgary 2014 Housing Market Outlook report, multiple offers for Calgary homes for sale reoccurred in 2013. This is amid increasing competition especially for single-family homes, but not with the frantic mode that took place in 2007.
Calgary home buyers, with post-recession mindset, are now more cautious, the report said. Generally, the Calgary residential real estate market is now more sensitive when it comes to overpricing. Younger buyers reemerged with renewed expectations as the Calgary residential real estate market experienced a mortgage tightening the previous year.
The suburban and condominium markets had the most positive impact on Calgary home buyers. The price and sales growth were in an up trend for these two Calgary housing markets. With Calgary townhomes, a tremendous price increase to $325,000 was seen this year for units that sold at $300,000 last year. Overall, activity in the Calgary residential real estate market put all 2013 price brackets under pressure. A seller's market was more pronounced below the $500,000 level, with the $350,000 to $490,000 bracket experiencing considerable amount of pressure. The mid-range (units priced over $500,000) was more in balance between buyers and sellers. More demand was seen in the higher price bracket, (above $1,000,000) reflecting a sellers market still exists for Calgary luxury homes.
The same report forecast a 2.5% increase in the average home price to $448,000 for 2014. MLS Calgary real estate sales were also forecast to increase by 9% to 30,000 units for next year.
In a preliminary forecast for 2014, the Calgary Real Estate Board (CREB®) foresees a 3.6% increase in year-over-year sales. For 2014, Calgary housing price growth was forecast at 4.3% in the same report. CREB® further reported that the number of MLS Calgary sales would be higher than the number new MLS real estate listings. Month-to-date, there was a 14.29% increase in Calgary homes sales to 440, higher than the 1.91% increase in MLS Calgary new listings to 427.
A Calgary real estate report by RE/MAX Real Estate Mountain View further forecast that demand for Calgary housing in 2014 will be driven by move-up buyers. These are buyers who level up to larger homes. The same report also said that equity gains, improved employment and income growth will further bolster expected gains in the higher end of the Calgary residential real estate market.Posted by Ross PAVL on