February activity soars
The Calgary Real Estate Board (CREB) has reported a significant surge in home sales during February, marking a robust start to the year for the city’s real estate sector.
According to CREB’s latest data, February witnessed a huge 23% increase in home sales compared to the same period last year. This surge translates to a total of 2,135 units sold, amounting to $1.25 billion in sales volume and a substantial 41.3% rise in dollar value.
In parallel, new listings also experienced a notable uptick, ascending by 13.6% to reach 2,711, while inventory levels dipped marginally by just over 14% from the previous year.
Ann-Marie Lurie, chief economist at CREB, attributes this surge to a persistent imbalance between demand and supply in the Calgary housing market. Lurie emphasizes that strong demand, coupled with limited supply, continues to propel price appreciation across the city.
“We continue to see seller market conditions, and ultimately, that’s been driving further price growth in our market,” Lurie said. “What we saw happen is listings continued to rise, but with that, sales also rose. So it was almost like they were rising at similar paces.”
The benchmark price for all home types surged to $585,000 in February, reflecting an impressive 10% year-over-year increase.
Increased activity in the real estate market
Notably, homes priced above $1 million notably contributed to the upswing in sales, accounting for a significant portion of the 237 sales reported during the initial two months of the year. Lurie underscores the significance of a notable rise in new listings in this segment, alleviating some of the tight inventory conditions observed in lower price ranges.
Lurie said that while listings and sales surged concurrently, they did so at comparable rates, effectively mitigating any substantial alteration to the persistently low inventory levels. However, she anticipates that the Calgary market will witness robust price growth throughout the spring season, albeit transitioning towards more balanced conditions.
“[It’s] definitely not as much of a seller's market condition as what we have traditionally seen,” said Lurie.
Properties were on the market for 24 days on average before being selling in February, down by almost 27% compared to the previous year.
Have something to say about this story? Leave a comment below.
