THE SURGE

Calgary home prices continue to surge
Sustained supply imbalance pushes prices higher
BY MARIO TONEGUZZI, 
CALGARY HERALD JULY 9, 2014

CALGARY - A sustained supply imbalance is pushing residential real estate prices higher, says a new survey released Wednesday by Royal LePage.

The company’s House Price Survey and Market Survey Forecast said the Calgary market experienced strong year-over-year price increases in the second quarter of this year across all housing types.

Detached bungalows increased by 9.7 per cent to $501,200 and condominiums rose by 9.3 per cent to $286,422. Standard two-storey homes increased by 7.9 per cent to $489,589.

“Calgary has had a serious inventory shortage dating back to the beginning of 2013, which combined with strong demand from prospective homebuyers is responsible for pushing prices skyward,” said Ted Zaharko, broker and owner of Royal LePage Foothills, in a news release. “We definitely have one of the hottest real estate markets in the country right now and all housing types are performing very well. Properties are being gobbled up as soon as they hit the market.”

But Zaharko said active listings are starting to climb.

“Slowly but surely we are seeing inventory levels creep up, which is needed to satisfy the pent-up demand after a prolonged period of insufficient supply,” he said.

Royal LePage is forecasting home prices in the city to rise by 5.5 per cent over the year compared with 2013.

“Prices are already up approximately 10 per cent year to date, and we expect this to creep up a little bit more before the end of the year,” said Zaharko. “The Calgary market is vibrant and is home to a strong local economy, fueled by the oil and gas industry. We expect the healthy real estate market to continue for the rest of this year and beyond.”

CHECK OUT THESE PIPES!

Canada new housing prices up 0.2 percent on strength in Calgary
Reporting by David Ljunggren; Editing by Theodore d'Afflisio
Thu Apr 11, 2013

OTTAWA (Reuters) - New home prices in Canada rose by 0.2 percent in February, the 23rd consecutive month-on-month increase, pushed up by a buoyant market in the western city of Calgary, Statistics Canada said on Thursday.

The advance matched analysts' expectations. Calgary prices rose 1.0 percent from January - the largest month-over-month increase since May 2007 - on higher material and labor costs. Calgary is the center of Canada's booming energy industry.

Overall, prices rose in 10 cities, stayed unchanged in nine and fell in two. On a year-over-year basis new housing prices in Canada rose by 2.1 percent in February, down from 2.2 percent in January.

The Canadian government, which imposed tighter mortgage rules last July, and the Bank of Canada have long expressed concerns the housing market might overheat.

The new housing price index excludes condominiums, which the government says are a particular cause for concern.

Photo by: Leo Reynolds

RESALE NEWS

Calgary sees more home resales as average price drops
By Mario Toneguzzi
Calgary Herald  November 30, 2011

Calgary's resale housing sales grew in October, but the average price dipped, according to the Conference Board of Canada.

In a report published Tuesday, the board said the seasonally adjusted annualized rate of sales in Calgary was 22,572 during the month, up from 22,344 in September and an increase from 19,524 in October 2010.

But the average price fell in October to $402,561 from $408,466 in September. A year ago it was $396,041.

As for new listings, the annualized rate in October decreased to 43,656 from 44,664 the previous month, but up from 42,960 in October 2010.

In October, the sales-to-new listings ratio in Calgary was 0.512. It was 0.471 in September and 0.455 a year ago. The conference board said Calgary can expect short-term year-over-year annual price growth of between five and seven per cent.

According to the latest Canada Mortgage and Housing Corp. market outlook report, MLS sales in the Calgary region are forecast to increase by 2.3 per cent in 2012 to 22,700, while new listings are expected to decrease by 1.1. per cent to 43,700. The average MLS sales price is forecast to jump by 2.2 per cent in 2012 to $411,000 in the Calgary census metropolitan area.

The CMHC housing market outlook says despite many positive factors for real estate, "competing factors such as uncertainty in the global economy has kept some prospective buyers on the fence and will continue to temper any large increases in sales."

Photo By: Where To Willie