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Calgary a bright light among Canadian housing markets

CALGARY — Calgary’s resale housing market continued to shine in April compared with the rest of the country as the city recorded the best year-over-year price growth and the biggest annual sales increase among major markets.

The Canadian Real Estate Association, in releasing its monthly MLS data on Wednesday, said Calgary saw sales of 3,003 for the month, a jump of 10.4 per cent and the association’s MLS Home Price Index, which surveys eight major markets in the country, showed Calgary leading the way with a 6.94 per cent year-over-year hike. The index tracks benchmark property sales.

In Canada, overall sales dipped by 3.1 per cent to 47,997 in April and the aggregate benchmark price was up 2.22 per cent.

“Since changes to mortgage rules made in 2012 took effect, national sales have been running nine to 10 per cent below levels posted in the first half of 2012 but they’ve been remarkably steady,” said Gregory Klump, CREA’s chief economist. “April activity was on par with where it stood last August, and month-to-month changes since then have held to within a range of plus or minus two per cent.”

The average MLS sale price in Calgary was up 3.6 per cent to $429,717 while new listings rose by 6.7 per cent to 4,664.

In Canada, the average sale price increased by 1.3 per cent to $380,588 and new listings rose by 5.6 per cent to 95,065.

For Alberta, sales were up by 5.0 per cent to 6,501; new listings rose by 5.0 per cent to 11,253; and the average price increased by 3.6 per cent to $378,892.

Sonya Gulati, senior economist with TD Economics, said we are continuing to see signs of a spring thaw in the Canadian housing market, an encouraging development especially heading into the all-important spring home-buying season.

“Just last month, home sales activity were down roughly 15 per cent, year-over-year. The same statistic this month is three per cent,” she said. “Price gains are also flirting with positive territory, albeit marginally above the zero threshold. As foreshadowed by our analysis, the impacts of the mortgage-rule induced slowdown are proving to be temporary.

“While there are signs of promise in the housing market, it is important to clarify expectations so everyone is on the same page. We do not anticipate a marked revival in the Canadian housing market in the months ahead. There simply is no economic impetus for a full-fledged comeback in the cards. In turn, the 2013 spring home-buying season should be mediocre at best.”

Douglas Porter, chief economist with BMO Capital Markets, said evidence continues to mount that the Canadian housing market seems to have pulled off the fabled soft landing.

He said surprises on the sales data in recent months have consistently been on the high side of expectations, not the low side.

“While some are highlighting the fact that prices are now rising at ‘their slowest pace since the 2009 recession’ the plain facts are that: a) they are still rising, and b) faster than inflation, and c) prices are at all-time highs. Some meltdown,” he said.

mtoneguzzi@calgaryherald.com

Read more: http://www.calgaryherald.com/Calgary+bright+light+among+Canadian+housing+markets/8387723/story.html#ixzz2TNRFQ950

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Brady Layton, BComm, CFP, Remax Landan Real Estate
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