Rate hikes appear to have had little impact on market activity, observers say
Calgary’s real estate market saw its busiest July ever with benchmark prices increasing for the seventh straight month, according to the latest data from the Calgary Real Estate Board.
“Rising rates had little impact on sales this month as the 2,647 sales represented a year-over-year gain of 18%, reflecting the strongest July levels reported on record,” CREB said in its latest data release.
The accelerated activity mainly stemmed from what the board described as “significant gains” in the relatively affordable apartment condo sector.
“Conditions remain tight for apartment condominiums with a sales-new-listings ratio of 84% and [supply] of 1.4 months,” CREB said.
The region’s residential benchmark price reached $567,700, a level that was more than 4% higher than the previous peak seen in May 2022.
“Continued migration to the province, along with our relative affordability, has supported the stronger demand for housing despite higher lending rates,” said Ann-Marie Lurie, chief economist at CREB.
“At the same time, we continue to struggle with supply in the resale, new home and rental markets resulting in further upward pressure on home prices.”
Calgary's strong 2022 performance is likely to continue into 2023 & beyond, thanks to a robust job market & booming in-migration numbers -- @CMPmagazine shares our latest research: https://t.co/o2NpkLQOdD#AYdifference
— Avison Young | Canada (@AY_Canada) April 24, 2023
The number of new listings in Calgary went up by 2.2% annually, for a total of 3,247 new units. CREB said that this was in line with seasonal expectations, continuing to hover near the July record low established back in 2006.
“With a sales-to-new-listings ratio of 82% and [supply] of 1.3 months, conditions continue to favour the seller,” the CREB said.
