LOOKING NORTH

Demand increases for resale homes
By Josh Skapin 
Calgary Herald October 4, 2013  

Sales of single-family resale homes climbed 20 per cent in September compared to sales a year earlier, with tight market conditions creating higher prices, says the Calgary Real Estate Board.

“The impact of the floods likely boosted sales throughout July and August, and it appears as though some of that additional demand is starting to ease,” says chief economist Ann-Marie Lurie of CREB.

“Nonetheless, sales growth remains strong, in part because net migration has been stronger than anticipated and rental product is in short supply.”

Net migration describes the inflow of people to the city minus the outflow.

During September, 1,354 homes changed hands, up 20 per cent from 1,126 during the same time in 2012, says CREB.

The benchmark price of single-family homes in Calgary was $463,700 in September, a seven per cent upswing from $432,900 during the same month last year. The benchmark price is that of a typical home based on a formula that uses various factors to ensure accurate comparisons.

“While prices show strong year-over-year gains, if the level of new listings continues to improve relative to sales activity, prices should level off for the remainder of the year,” says Lurie.

Homebuyers have seen about the same selection this year compared to a year ago. There were 18,949 new listings between Jan. 1 and the end of September, a slight decline of 0.2 per cent from 18,881 during the same span in 2012.

However, the market saw a turnaround for new listings in September.

Last month, 1,975 single-family resale homes were added to the market, five per cent more than the 1,887 during this time last year.

From Jan. 1 to the end of September, 13,006 single-family homes were sold on Calgary’s resale market, a seven per cent improvement over the 12,186 transactions during the same period last year.

The quadrant with the most single-family house sales in the city during September was the northwest.

The board’s Zone A, which roughly consists of the northwest, finished the month with 467 transactions.

The next busiest quadrant was the board’s Zone C with 357 homes changing hands during September. This zone roughly consists of southwest Calgary.

At the same time, the board’s Zone D had 299 deals, while 231 homes sold in the board’s Zone B. Zone D roughly covers the southeast quadrant and Zone B is mostly the northeast side.

NORTHWEST LEADS REST

The two communities that saw the highest single-family home sales in the city in September were both in northwest Calgary.

Tuscany led the city in sales with 34 deals at an average sale price of $535,688, says the Calgary Real Estate Board. Panorama Hills had the second highest sales with 31 transactions at an average price of $487,477.

For information, visit creb.com