It's still a good time to sell your home as the Calgary real estate market enjoyed another brisk month in October with the second-most sales for the month in the history of the city. October saw home and condo prices go up as well.
For starters October 2014 included 2,148 total MLS sales (single-family homes, townhouses and condos), which is a whopping 10.27% increase over last October. Meanwhile in terms of home prices, Calgary's median price went up 5.33% to $430,411, with the average sale price increasing to $486,411, up 6.49% from September. The October record for sales was back in 2005, when 2,204 residences changed hands.
It's interesting the Calgary real estate market has continued to see increased sales and prices at a time of the year when the real estate market is generally slower. But experts say this is due, in part, to new job growth and population migration from other parts of Canada. Calgary enjoys the lowest unemployment rate (4.6%) of any major Canadian city.
If you're looking to sell your single-family home, the average price is now $555,000, which is up 7.5%, while condo prices are now averaged out to $322,357, an increase of 4.18%. The price for buying a townhouse is also higher following a 4.71% jump to an average price of $376,000.
Calgary Homes Construction Expected to Simmer Down
Looking ahead to 2015-2016, officials expect housing starts to cool off after an anticipated record year in 2014, according to the Canada Mortgage & Housing Corporation.
The CMHC, in its Fall 2014 Calgary Housing Market Outlook, noted new home starts in the Stampede City will reach 17,200 units by the end of the year, but then slow down to 14,400 in 2015 and 12,800 in 2016. When it comes to single-family homes, the CMHC said there will be 6,700 starts in 2014, with drops to 6,400 in 2015 and 6,300 in 2016. The slight decrease is a result of moderating job growth and fewer people moving to Calgary.
In the same report, the CMHC is forecasting a record a record number of sales this year, with an anticipated 33,500 residences changing hands.
The one economic factor to keep an eye on going forward, though, is the price of oil. The price of West Texas Intermediate has been on the decline since June, when it was selling for US$105 a barrel. As of Nov. 3, 2014, it was hovering at just over US$80. If the price continues to stay low, Calgary could see a bit of an economic downturn as oil and gas companies shelving exploration and development projects may have a trickle-down effect on Calgary's real estate market.
Ryan MacDonald, B.Sc. Real Estate Professional
Million Dollar Club Member
Top 1% Real Estate Professional in Calgary
O: 403.278.2900; F: 403.592.8008