Tighter supply conditions see more offers above listing prices, says real estate board
Good news for sellers, not so great news for buyers.
The Calgary Real Estate Board has announced that the city has set a new record in the housing market. The benchmark price for a home sold in April has reached a staggering $550,800, up 2% from March and 1.19% from a year ago.
Despite the increase in the benchmark price, the board reported that the number of sales tumbled almost 21% to 2,690 over the same period, leaving the market with tighter conditions than were seen earlier in the year and when compared with April.
New listings also fell nearly 32% since last April to 3,133.
Ann-Marie Lurie, the Calgary board's chief economist, said that while sales activity is at a level the board expected, the steeper pullback in new listings has ensured that supply levels remain low.
"The limited supply choice is causing more buyers to place offers above the list price, contributing to the stronger than expected gains in home prices," Lurie said in a statement.
The actual average price of a home sold in the city last month was $549,524, a roughly 3% rise from a year ago.
Despite the rise in actual average price, the board stated that the increase in the benchmark price is a better representation of market trends since it factors out the extremely high-end and low-end sales.
The board also stated that while the housing market may seem unaffordable to some, it is important to remember that the market varies by location and property type.
In addition, the board stated that mortgage rates are still historically low, making it a good time for buyers to enter the market.
Overall, the Calgary Real Estate Board remains cautiously optimistic about the housing market in the city, stating that it is important for buyers and sellers to consult with their real estate agents to understand local market conditions and make informed decisions.
