Photo: Jerry Charlton/Flickr
Slowly but surely Calgary’s housing market is heading towards recovery, as demand for detached homes continued to pull up city-wide house prices in May.
However, the city’s condo segment is not getting a comparable boost as apartment inventory levels accounted for nearly 30 per cent of city-wide inventory and saw an 11 per cent year-over-year increase, according to the latest data from the Calgary Real Estate Board (CREB).
“Fifty-one per cent of all active condo apartment listings are all in the city core which is very rare, it’s not that high usually,” says Jared Chamberlain, Team Lead at Chamberlain Group, a division of Royal LePage.
Months of supply for apartments was over six months in May and the benchmark price fell almost 3 per cent to $271,200.
Despite a plethora of condos in the market, demand for detached homes continued to rise in May, maintaining the upward trend of city-wide house prices for a fourth consecutive month.
“Improved demand and easing supply has created more balanced conditions and ultimately some modest price gains,” says CREB chief economist Ann-Marie Lurie, in a press release.
“While it will still take some time for prices to recover, the transition in the detached segment is an important first step to stabilization across all segments of the housing market,” she adds.
In the city, the benchmark price of a home was $443,800 last month, less than a one per cent uptick from May 2016.
Last month, Calgary saw a total of 1,920 transactions, up 10.36 per cent from May 2016.
And while city-wide prices saw a modest increase, prices still remain below record-highs seen in 2014, says CREB.
In the detached segment, for the first time in two years the benchmark price did not drop on a year-over-year basis last month, rising one per cent to $509,000.
A total of 1,378 detached homes changed hands in May, a 13.6 per cent hike from the same period last year.
Meanwhile, months of supply declined to roughly 2 months, close to a 15 per cent year-over-year drop.
“There is a very strong demand [in the detached segment], especially when you’re at the $550 to $600,000 and below [price mark], there is a real strong demand,” says Chamberlain.
“And then when you get between that $550,000 to a million dollar mark it’s actually still decently strong,” he adds.
Calgary’s attached home segment also showed signs of moving towards balanced conditions in May. The benchmark price was $333,900, a slight 0.15 per cent year-over-year increase and months of supply fell almost 10 per cent to just over 3 months.
Going forward, Chamberlain predicts the market will stabilize steadily as house price growth will continue to trend upward.
“From here we’re probably going to start to see a slow growth over the next two, three, four years,” Chamberlain says.