Calgary and outskirts moved to sellers’ territory last month, with stability expected up to the end of 2019.
Four of seven local markets in the region have seen markedly intensified competition as of July, according to a new analysis by Zoocasa.
Calgary’s sales-to-new-listing ratio (SNLR) during the month was a strong 61%, along with an average residential sales price of $425,700.
The city will most likely enjoy sustained housing performance for the rest of the year, CREB chief economist Ann-Marie Lurie said earlier this month. Continuous economic recovery will contribute to this trend significantly.
“Supply continues to adjust in the resale market, but also in the new-home and rental markets. Reductions in housing supply are expected to move the resale market toward more balanced conditions and support price stability by the end of the year,” Lurie told the Calgary Sun.
However, Lurie stressed that “while prices may stabilize, on an annual basis they are expected to remain below last year’s levels.”
“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” she said. “Supply declines will help to better position the broader market for recovery moving into 2020.”
Of the outskirts, Okotoks was the most heated sellers’ market, with an SNLR of 73% and an average price of $415,300. This represented an 8% annual increase in the municipality’s SNLR, around 3.7% annual sales growth, and a 7.4% decline in new listings during the same time frame.
Airdrie also exhibited considerable strength with its SNLR of 68% and an average sales price of $331,100. This was propelled by the market’s 13% increase in sales and its 8.5% shrinkage in listings.
Cochrane registered a robust SNLR of 65% and an average of $408,300, although a closer look would reveal that the internals were fundamentally different from other markets in the region. Cochrane’s sales have remained virtually flat over the year, while new listings fell by a dramatic 31.8%.
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