There seems to me more listings coming on the market lately and the Calgary Real Estate Board is confirming that. They say there was an 18 percent increase in the number of listings in July when compared to July of 2013. That is helping to give us a more balanced market where things are a little more sustainable.
Anyone that was shopping for a home in the first half of 2014 will know that everything was in short supply and you had to act fast to get anything. There were many multiple offers and when a new listing came on that met your criteria, you had to jump on it or it would be gone. Things are still pretty active and good properties in good areas are still selling fast, but it has noticeably slowed down.
Average prices are up over 6% over this time last year for single family houses. Apartment style condos have increased by almost 9% and townhouse condos have increased by 6% over this time last year. It is important to consider that each quadrant of the city and each neighbourhood will have their own statistics and some hot areas will have dramatically higher price increases, while less desirable communities may have smaller increases. You can see all the statistics you could ever want on the Calgary Real Estate Board’s website here
So, what will the rest of the year be like for the Calgary Market? I think the fall will be very active with more listings and lots of sales with prices holding steady, depending on the amount of listings we get. It is all about supply and demand, so when there are not enough listings prices go up quicker. People are still moving to Calgary in droves so I think there will still be upward pressure on prices because those people have to live somewhere, and the rental vacancy rate is very low.
Mortgage rates are still rock bottom at around 2.84% for a five year fixed rate so even with all the price increases homes are still affordable for many people.
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