WITHIN A HAIR

Resale home prices rise to near record
By Claire Young
Calgary Herald April 5, 2013

Fewer houses for sale and greater demand are pushing single-family resale housing prices up to near historical averages, says the Calgary Real Estate Board.

The average price rose to $518,392 in March, up 9.6 per cent from $472,698 during the same month last year.

This is within a hair of the new record of $518,500 for the average resale price for single-family homes logged in February, which beat the old high mark of $506,700 set in July 2007.

“Tighter rental conditions and continued employment growth has supported housing demand growth,” says chief economist Ann-Marie Lurie of CREB. “However, for those looking for more affordable single family home products, their choices continue to narrow.”

There were 3,194 new resale listings in Calgary in March, down almost five per cent compared to 3,348 during the same time last year.

For the first three months of 2013, the number of new listings was 8,358, down 4.6 per cent from 8,761.

“Less resale product available to consumers is ultimately limiting sales growth,” says CREB president Becky Walters in a news release. “In addition, resale homes are selling in less time and with continued upward pressure on prices.”

Listings of single-family resale homes in Calgary saw a year-over-year drop, declining to 2,239 in March, down 4.5 per cent from 2,346.

March’s benchmark price —that of a typical home based on a formula that uses various factors to ensure accurate comparisons — also rose to $446,500 in March, up 8.9 per cent from $411,000.

New listings of single-family homes under $500,000 are declining at double-digit rates, says Lurie. She predicts this will drive potential Calgary homebuyers to consider surrounding towns, condominiums or the new home market.

In Calgary, total sales of single-family homes dropped to 1,480 in March, down six per cent from 1,575.

The board’s Zone A, which is roughly the city’s northwest, saw 541 transactions at an average sale of $507,545 and 33 days on the market.

The two communities in the city that saw the most sales activity in March were both in Zone D, in the southeast.

Cranston and McKenzie Towne both logged 41 sales. The highest average sales were logged in the board’s Zone C in the southwest community of The Slopes, with two sales averaging $1.72 million.

OUT-OF-TOWN SALES DROP

Total MLS sales of resale homes in the communities surrounding Calgary dropped by two per cent in March compared to the same month last year, says the Calgary Real Estate Board.

Sales fell to 364, down from 372 sales, while new listings dropped significantly during this time to 662 in March, down 15.6 per cent from 785 last year.

But average prices rose to $365,002 in March, up 4.7 per cent from $348,474, says the board — and benchmark prices also increased to $336,100, up 7.1 per cent from $348,474.

The benchmark price is that of a typical home determined using various factors to ensure accurate comparisons.