Tightening of Supplies in Calgary real estate Market
Tuesday, April 3rd, 2012CALGARY — Calgary’s real estate market has seen a tightening of supply in the first quarter of this year with sales increasing and new listings declining.
According to the Calgary Real Estate Board, the first quarter of this year has seen 4,970 MLS residential sales in the city, up 7.32 per cent from the same period last year. New listings have dropped by 7.24 per cent to 8,765 and the average sale price for the first three months increased by 1.79 per cent to $416,679.
The sales-to-new listings ratio of 0.57 per cent in the first quarter was up 15.7 per cent from last year.
“While the number of listings for the first quarter of 2012 remains low compared to last year, the level of decline has lessened, therefore pointing to the fact that those people who have been on the fence are starting to list their homes, and this trend is expected to continue,” said Bob Jablonski, CREB’s president.
CREB said the year-over-year decline in new listings, combined with improving sales, has pushed down inventory levels to 5,092 units from 5,866 last year, as well as months of supply.
“It is not uncommon for the months of supply to decline in March as we transition from the winter season to the spring season,” said Jablonski.
The real estate board said the tightening of supply has led to some cases of multiple offers on houses.
“It is important to note that multiple offers can happen during any market with a well-priced listing or a unique property,” said Jablonski. “New listings coming onto the market at a good price are generating a lot of activity … Also, the sales-price to list-price ratio does not reflect levels recorded during the peak of the market, when there were supply shortages.”
In a report released Tuesday, the Conference Board of Canada said Calgary’s housing market can expect short-term year-over-year price growth of between five to seven per cent.
It said Calgary’s market is classified as balanced. In February, the seasonally-adjusted annual rate of sales was 24,024, up from 23,532 in February 2011 while the seasonally-adjusted annual rate of new listings had dipped to 42,168 from 47,664 a year ago.
mtoneguzzi@calgaryherald.com
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