Calgary House Prices Reach Peak
Calgary's resale housing market for the month of June made the highest record MLS® average sale prices, both for single-family homes and the city's overall market.
The Calgary Real Estate Board (CREB®) recently released data on the city's overall MLS average sale price for June, showing a 5.6% increase to $466,458 from last year's $462,076, surpassing May's record of $462,076. CREB® also reported an increase in average sale price of single-family homes for the month of June to $527,162, a 7.7% increase from last year's figure. It also surpassed May's record of $521,887.
According to Rachelle Starnes, Realtor® at Royal LePage Foothills, the recent flood in Calgary suddenly changed the market. With the recent selling of properties to those who lost their homes, the scenario has shifted to a sellers' market, where buyers need to make an immediate purchase before losing the property to competing buyers.
Starnes said the overall limited supply will tend to increase prices, based on Keynesian economics. Further she said that the previous months showed zero luxury homes sold, but with the flood's aftermath, there was more activity, with 3 offers in a week on homes that had previously been inactive.
The chief economist at CREB®, Ann-Marie Lurie, said an accurate assessment of the flood's impact on the Calgary real estate market can only be obtained after the full extent of the damage is determined. However, she said that tight market conditions that push prices upward in all city sectors may offset the short-term pricing impact on the flood affected areas, resulting in no change in the city's overall price growth.
The headline that "June MLS Calgary real estate sets record" was also confirmed by data revealed by First Place Realty associate broker Mike Fotiou. His website showed the month of June having 74 luxury homes sales for $1-million plus sales. June was also capped by the recent record-breaking Calgary MLS® home sale of Jim Shaw in Crescent Heights for $11.1 million. The month of May recorded the all-time highest number of sales with 84 luxury homes.
Fotiou revealed that year-to-date sales ending June reflected 394 luxury homes, an increase from 299 for the same period the previous year. He said that last year a record 544 luxury homes were sold. He further said that this year's mid-year total already surpassed the year-end total sales for the years 2010, 2009 and 2008, with total sales of 365, 337 and 369, respectively.
CREB® records show that June made a total of 2,317 MLS® sales, an increase from last year's sales by 5.51%. The median price also increased by 3.32% to $405,000.
Sales for the single-family market increased by 2.06% to 1,638, with the median price up by 4.65% to $450,000. For condo apartments, sales increased by 6.78% to 362 units, with average price down 0.35% to $301,193 and the median price up by 2.12% to $265,500. The condo townhouses revealed a 25.79% sales increase to 317 units as average price increased by 5.14% to $341,518 and the median price increased by 6.43% to $361,500.
Courtesy of: Calgary Herald
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