Record month for real estate as floods change market dynamics
CALGARY — It appears June was another record month for Calgary’s resale housing market.
Preliminary data from the Calgary Real Estate Board’s website indicates average MLS sale prices for both the overall market in the city as well as for single-family homes were the highest ever.
The overall MLS average sale price in the city reached $466,458, up 5.6 per cent from last year, eclipsing the previous mark of $462,076, which was set in May.
In June, the single-family home average price hit $527,161, up 7.7 per cent from last year, and bettering the May’s record of $521,887.
Calgary realtor Rachelle Starnes said the past week of flooding has changed the market dramatically.
“We have seen in the past week properties sell, sight unseen, for families that have lost their homes in the flooding,” said Starnes, who is with Royal LePage Foothills. “It is shifting into a sellers’ market where buyers must buy immediately when a property enters the market or risk losing it to competing offers if they wait. The rental market is becoming non-existent so the families must purchase an alternative.
“There is limited overall supply and therefore pure Keynesian economics say prices must increase with low inventory … We have seen zero showings on luxury homes for months at a time and then all of a sudden in the past few weeks, we get three offers in one week on homes that have had no activity. It is very volatile at the moment.”
According to the website of Mike Fotiou, associate broker with First Place Realty, there were 74 luxury home sales in June, setting a record for the most $1-million plus sales for the month of June. The month was capped by the record sale last week of a home in Crescent Heights for $11.1 million. The all-time monthly record for luxury home sales was established in May at 84.
(Editor’s note: June data in graphic based on preliminary data)
Year-to-date until the end of June, said Fotiou, there have been 394 luxury home sales, up from 299 for the same period last year, which set a record of 544 sales for the year.
The mid-year total so far this year has already surpassed year-end totals for 2010 (365), 2009 (337), and 2008 (369), pointed out Fotiou.
According to CREB’s website, there were 2,317 total MLS sales in the city in June, an increase of 5.51 per cent from last year. The median price rose by 3.32 per cent to $405,000.
In the single-family market, sales rose by 2.06 per cent to 1,638 and the median price was up by 4.65 per cent to $450,000.
The condo apartment category saw sales rise by 6.78 per cent to 362 units with the average price dipping by 0.35 per cent to $301,192 but the median price rising by 2.12 per cent to $265,500.
The condo townhouse category experienced a sales increase of 25.79 per cent to 317 units as the average price moved upwards by 5.14 per cent to $341,518 and the median price increased by 5.35 per cent to $305,000.
And the towns outside of Calgary market had sales remain the same at 476 transactions in June but the average price was up by 7.11 per cent to $377,576 and the median price rose by 6.34 per cent to $361,500.
Twitter.com/MTone123
Read more: http://www.calgaryherald.com/business/Record+month+real+estate+floods+change+market+dynamics+with+graphic/8605372/story.html#ixzz2XuQKVBDK
