According to the Calgary Real Estate Board, the housing market in Calgary achieved a new record for number of sales. The number of properties that changed hands totaled 3,120, representing an impressive nearly two-per-cent increase compared to last May’s sales of 3,063.
Positive Trend in Favorable Conditions
This record-breaking achievement reflects the growing interest and favorable conditions in Calgary’s housing market. even at the higher price point than years past, Calgary remains affordable when compared to most major housing markets in North America. Despite some challenges earlier this year, the market has shown resilience and is now heading in a positive direction. Although year-to-date sales are still behind last year’s numbers by about 30 percent, the market is steadily recovering. This means that the overall sales for the year are improving month over month now, which is a good sign for the real estate market in Calgary.
In 2022 the volume of sales dropped significantly in the last half of the year as the Bank of Canada aggressively increased interest rates. If the trend of more recent months continues Calgary may exceed 2022 total sales in 2023.
Scarcity of Listings Increases Demand & Value
New Listings are down compared to last year. Last month, the drop was 15 percent, resulting in fewer available properties for sale. This lack of listings combined with stable demand pushes prices upward. Basic Economics of Supply and Demand!
There is also good news for property owners as the prices of homes are going up. The benchmark price, which is a calculated value of the “typical” property increased by almost three percent, reaching $557,000. The average price rose by around six percent, amounting to $551,853. Property values are increasing helping homeowners be in a stronger equity position.
Rental Rate Gains Driving Demand for Condo Sales
The recent increase in rental rates is another factor contributing to the higher sales, especially in the entry-level condo market. With more people interested in purchasing apartments and condos for rental purposes we are seeing strength in this section of the market that has lagged since 2015.
Promising Outlook for Calgary’s Real Estate
The record-breaking sales in May and the positive market performance indicate a promising outlook for Calgary’s real estate sector. Despite some challenges, the market is showing resilience and attracting buyers. The rising prices and increased demand highlight the value and potential of investing in Calgary’s real estate market.
