Airdrie a seller’s market, according to Calgary Real Estate Board
| Posted: Thursday, Apr 17, 2014 11:48 am
Towns surrounding Calgary recorded double-digit sales growth in the resale housing market for the third consecutive quarter. On aggregate, the housing markets in surrounding areas are more balanced relative to the single-family sector in Calgary.
“Besides lifestyle preference, homebuyers are attracted to surrounding areas because of the relative price advantage,” said Calgary Real Estate Board (CREB) President Bill Kirk. “Surrounding areas provide alternatives for price-sensitive consumers and a selection of product types that may not be attainable in Calgary.”
In the first quarter of this year, 44 per cent of new single-family home listings in surrounding areas were priced below $400,000. Whereas, only 23 per cent of single-family homes in Calgary were available under this price point.
Sales in surrounding communities totalled 1,104 units, a 28 per cent increase over the same time last year. Meanwhile, new listings in surrounding areas totalled 1,110 units, a two per cent increase over the first quarter in 2013.
“The economic growth in Calgary has resulted in a large inflow of net migrants to the city,” said CREB Chief Economist Ann-Marie Lurie.
“This has boosted housing demand across the region. For many of the surrounding areas, the demand growth has helped reduce some of the excess inventory levels, supporting price recovery.”
With 336 sales in the first quarter, Airdrie posted its fourth consecutive quarter of double digit sales growth.
The sales growth is due in part to increases in single-family new listings. However, the pace of sales growth far exceeded any additions to supply, pushing the market into seller’s conditions and placing further upward pressure on prices. The average price for a single-family home in Airdrie for the first quarter was $365,267, a 6.3 per cent unadjusted gain from the same time last year.
Sales in Cochrane surged with 174 units sold in the first quarter.
These results are the highest ever first quarter sales recorded in Cochrane and resembled growth more consistent with spring sales activity. While the surge in sales reduced inventory levels, due to previous inventory gains, the Cochrane resale market remains better supplied relative to demand than Okotoks, Airdrie and Calgary. The average single-family benchmark price in Cochrane for the first quarter was $418,500, a year-over-year gain of 5.6 per cent, which is still below peak level prices.
Okotoks recorded its best first quarter of sales since 2009, with 149 total units sold.
The amount of new listings declined, which lowered inventory levels, tightened market conditions, and supported price gains. Okotoks’ single-family benchmark price for the first quarter was $391,867, an unadjusted increase of 1.3 per cent over the last quarter and a 4.5 per cent increase over the first quarter in 2013. In March, Okotoks also posted a new record for its single-family benchmark price, at $399,400.