While home prices continue to break records month-over-month, sales in Calgary have also hit a new all-time peak for the month of June with 3,146 homes sold, according to the Calgary Real Estate Board. The heightened market activity in the area comes in spite of the Bank of Canada recently raising interest rates for the ninth time in 15 months.
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Demand for Condo Apartments High, Smashing Last Year’s Sales Numbers
The record number of sales in the region was driven by a sharp increase in condo apartments. There were 857 sales in June, an increase of 48% compared to last year. Sales have remained consistent with May, when there were 858 sales. The high number of transactions is partly due to the improvement in the number of listings coming to market, with 1,061 apartments listed in June, up 14% from last year.
However, inventory remains strained as demand continues to outpace it. There were 3,450 homes on the market at the end of June, down 36% year-over-year. As Calgary has become a hotspot for in and out-of-province buyers, new listings and existing supply are being scooped up quickly. In June, 7.8% more homes were listed on the market at the end of June compared to May, and although this wasn’t enough to drastically improve supply, it’s a positive start.
A side effect of the increasing demand and lack of supply is that with more competition for fewer homes, prices continue to rise. Sellers have been reaping the rewards for a few months now. The average home is already the most expensive it has ever been and that price continues to climb, now hitting $564,700, an increase of 1% from the May average price.
Sales Numbers Cool in Surrounding Cities
Sales numbers are cooling as prices climb to record highs in Airdrie, Cochrane and Okotoks. There were 221 sales in Airdrie, down 9.8% year-over-year, while Cochrane fell 4.1% to 93 and Okotoks down 2.2% to 87. Even with declining sales numbers, inventory is still incredibly low. Of the three cities, Cochrane is the only one with more than one month of inventory, currently at 1.55.
Despite the drop in sales, home prices are still the highest they have ever been. The average home in Airdrie will cost you $511,100, up 3% year-over-year. In Cochrane, the price is $526,500, a yearly increase of 1.7%, and in Okotoks, it’s $585,300, up 6.1%.
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