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With 2,989 sales last month, housing market activity hit a new May record but was less than the 3,201 sales recorded in April
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Calgary’s housing frenzy cooled somewhat in May, but the city remains a seller’s market.
With 2,989 sales last month, housing market activity hit a new May record but was less than the 3,201 sales recorded in April.
Ann-Marie Lurie, chief economist for the Calgary Real Estate Board, said that is because there were 4,562 new listings in May, causing seasonally adjusted inventory levels to increase over last month.
“The recent gains in prices have encouraged more homeowners to list their homes and take advantage of the current market situation,” Lurie said. “However, the inventory gains are still not enough to offset the demand growth and the market continues to favour the seller.”
Real estate sales volumes in Calgary plummeted to new lows in the spring of 2020 due to the combined effects of the COVID-19 pandemic and a crash in oil prices. However, the market has rebounded dramatically since as a result of near-record low interest rates, growing optimism about economic recovery, and the fact that a lack of things to spend money on during COVID-19 has allowed some prospective homeowners to save up enough for a down payment.
The unadjusted benchmark price for Calgary in May hit $455,200, one per cent higher than last month and nearly 11 per cent higher than prices recorded last year, according to CREB.
However, while prices are rising, they have not yet recovered to previous records set when the Alberta economy was booming. Only detached and semi-detached home prices in specific districts and communities have recovered to 2014 levels, Lurie said. Apartment-condominum prices in Calgary remain 16 per cent below where they were in 2014, she said.
astephenson@postmedia.com
Twitter: @AmandaMsteph
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