Calgary real estate sets another sales record as tight conditions persist

Calgary’s real estate market continues to defy expectations as it set another record for sales in June. According to the Calgary Real Estate Board (CREB), there were 3,146 sales in June, up 10.9 per cent from the same month last year and 65.7 per cent above long-term averages.

The strong demand was driven by a surge in apartment and condo sales, which increased by 48 per cent year-over-year and accounted for 27 per cent of total sales. Meanwhile, detached home sales rose by three per cent year-over-year and represented 54 per cent of total sales.

The high sales activity was accompanied by low inventory levels, which kept the market conditions tight by historical standards. The months of supply, which measures how long it would take to sell all the current listings at the current sales rate, was 1.7 in June, down from 3.8 in June 2020.

As a result, prices continued to rise across all property types. The benchmark price, which represents the typical home sold in an area, reached $455,200 in June, up 11.1 per cent from last year and 6.4 per cent from January. The benchmark price for detached homes was $537,200, up 13.1 per cent year-over-year and 7.4 per cent year-to-date. The benchmark price for apartments was $254,300, up 6.6 per cent year-over-year and 4.2 per cent year-to-date.

CREB chief economist Ann-Marie Lurie said that the market is showing signs of moderation as the economy reopens and more listings come on the market. However, she cautioned that the supply-demand imbalance is still significant and could persist for the rest of the year.

“Ultimately, prices are driven by supply and demand,” she said. “And if supply continues to remain this low relative to demand, we could see some of the largest price increases recorded since 2014.”

Source: www.msn.com