Robyn In The News AGAIN

Repeat home sale price growth best in Calgary

Increase of 6.7 per cent from last year

Robyn Moser infront of 710 Rideau Road SW

Robyn Moser infront of 710 Rideau Road SW

CALGARY – Calgary had the best year-over-year price growth for repeat home sales in October, according to the Teranet-National Bank National Composite House Price Index.

The index, which was released Wednesday, said Calgary prices were up 6.7 per cent from a year ago while the national composite of 11 centres showed an annual increase of 3.1 per cent.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.

On a monthly basis, prices rose by 0.9 per cent in Calgary and by 0.1 per cent nationally.

Four markets exceeded the national average for year-over-year price growth – Calgary, Hamilton (4.6 per cent), Toronto (4.1 per cent) and Quebec City (3.8 per cent). The annual increase lagged in Vancouver (2.7 per cent), Edmonton (2.2 per cent), Winnipeg (2.0 per cent), Montreal and Ottawa-Gatineau (0.9 per cent). Prices were down for an eighth straight month in Victoria (0.5 per cent) and for a third month in a row in Halifax (0.7 per cent).

On a monthly basis, the index increased in three of the regions covered – Vancouver (1.1 per cent), Halifax (1.0 per cent) and Calgary. Prices declined in Montreal and Winnipeg (0.1 per cent), Toronto (0.2 per cent), Edmonton (0.3 per cent), Quebec City (0.4 per cent), Ottawa-Gatineau (0.5 per cent), Victoria (0.6 per cent) and Hamilton (0.8 per cent).

Calgary’s residential real estate market is showing no signs of slowing down in November. According to the Calgary Real Estate Board, month-to-date until Tuesday, total MLS sales of 692 in the city are up 31.56 per cent compared with the same period last year and the average sale price has jumped by 8.62 per cent to $464,596.

“Annual home price inflation (in Canada) may have accelerated to 3.1 per cent in October but we doubt that there is significant upside going forward. Even if 12-month inflation will continue to benefit from a favourable base effect through February 2014 – recall that home prices declined in six consecutive months after the introduction of more stringent homeownership rules in July 2012 – the fact still remains that the 0.1 per cent monthly increase recorded in October was weaker than normal,” said Marc Pinsonneault, economist with the National Bank.

“What’s more, prices failed to grow on a monthly basis in at least eight regions. This is a development usually associated with price weakness. Resale activity has picked up in recent months, but it seems that households are bargaining harder on prices to compensate for higher mortgage rates.”

Amna Asaf, economist with Capital Economics, said the national pick-up in house price growth had a lot to do with the latest surge in existing home sales, which has been driven by fears of higher mortgage rates.

“With the five-year conventional mortgage rate essentially unchanged at 5.34 per cent since August, that kind of boost to sales cannot be expected to last too long. Apart from higher sales, lower supply of homes listed for sale has dampened the months’ supply of inventory, which suggests that house price growth is likely to accelerate in the next few months.”

Robyn Moser in the News!

Robyn Moser in 710 Rideau Road SW - Calgary Herald

Robyn Moser in 710 Rideau Road SW – Calgary Herald

Calgary housing market soaring with sales and price hikes (with graphic)

Strong sellers’ conditions as listings down

Calgary’s resale housing market continued to soar in October with strong year-over-year hikes in both sales and prices.

According to preliminary data from the Calgary Real Estate Board, MLS sales of 1,953 for the month were up 17.72 per cent from a year ago as the average sale price rose five per cent to $458,876 while the median price saw an increase of 5.96 per cent to $409,000.

“The October Calgary real estate market kept a consistent absorption rate between two to 2.2 months worth of inventory. This places us in a strong sellers’ market,” said Robyn Moser, a realtor with CIR Realty in the city.

“Attributes of a sellers’ market are, competing offers, listed home selling in the first two weeks or sooner, sellers being able to dictate the terms of the negotiations and not having to settle for much less than realistic asking prices. All consistent with our October experiences.”

Although new listings for the month were up 9.08 per cent to 2,522, active listings at the end of the month were down 16.18 per cent to 3,840.

The average days on the market to sell a property dropped from 45 a year ago to 40 in October.

Moser said housing activity in Calgary may be fuelled by a number of factors: seasonal fall peak activities with people wanting to purchase and move into homes before winter sets in; investor speculators coming into the market due to the flood impact in June; corporations reorganizing and centralizing back to Calgary and Edmonton; and rental rates increasing.

“Buyers had to react to this market by acting quickly when homes came available for sale, being prepared to pay asking price or above and ensuring they were prequalified and prepared for condition days of seven days or less in order to get their offers accepted,” said Moser.

Sales and prices were up across all housing categories in the city during the month.

In the single-family home market, there were 1,336 MLS sales, up 14.29 per cent from last year with the average sale price increasing by 4.76 per cent to $516,244 and the median price rising by 5.12 per cent to $452,000.

The condo apartment category saw sales rise by 24.35 per cent to 337. The average sale price was up 6.76 per cent to $309,414 and the median price rose by 8.80 per cent to $272,000.

In the condo townhouse market, sales of 280 were up 27.85 per cent with the average price rising by 13.49 per cent to $365,036 and the median price up by 8.29 per cent to $319,450.

The towns surrounding Calgary saw sales jump by 23.64 per cent to 387 with the average price increasing by 13.51 per cent to $390,580 and the median price up 8.11 per cent to $360,000.
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