In a recent Financial Post interview, economist Diana Petramala of the Toronto-Dominion (TD) Bank stated that the home resale market in Calgary has shown continuous expansion over the past few years. Citing a report with updated figures released by the bank, Petramala observed that the current five-year record low in mortgage rates along with a better economy are some of the reasons for this increased interest and traffic:
“The demand for housing pushed May average resale price growth to 7.1% on a year over year basis which is well above income growth. The home price-to-income ratio is at a new high.”
The TD report said that the number of purchases of previously-owned houses for sale in Calgary as of May 2014 was way higher than the existing 10-year average. This growth was attributed to the reduced number of days for sale of properties along with an increased percentage of transactions above initial asking prices.
The report also noted the increased presence of bidding wars for single-family homes, which has translated to a higher number of completed transactions this year. Lower inventory and higher demand contributed to the increase of multiple-offer scenarios. In particular, both May and June 2014 set the new record for monthly sales levels in the region. Taking all of these factors into account, Petramala predicted that the housing market is poised to exhibit more strength for the rest of the year.
Another related report said that one of the things to keep an eye on is the quiet but consistent activity in the sale of luxury properties geared for international buyers, which can spur an even greater purchase volume in the market in the coming months. An additional issue to consider is that inner city redevelopment has increased the value of real estate in that location. Coupled with growing local wages and an increased amount of net migration, the booming house resale market has contributed in no small part to the long-term optimistic outlook for Calgary.
The TD report concluded that both Calgary and Edmonton remain very strong, and are projected to continue expanding for the next several years. The property resale market is also expected to remain active and continue its healthy growth rate. Interested parties who are looking for previously-owned homes for sale in Calgary are encouraged to approach local experts such as Inner City realtor Christine Ordze to find the best prices available.
(Source: Even economists say they continue to be surprised by Canada’s housing market, Financial Post, July 3, 2014)