Calgary's housing market stays hot

CALGARY HERALD - Calgary's hot housing market started 2014 with a bang...and shows no signs of cooling off any time soon. Calgary recorded the highest year-over-year jump in house prices across the Canada in January, and so far indications show the escalation continues in February. 

The Canadian Real Estate Association released its monthly MLS data on Friday and listed Calgary as the top centre in the country for annual growth in the MLS Home Price Index at 8.98 per cent. Nationally, prices, in the 11 centres surveyed, rose by 4.83 per cent.

“We are seeing multiple offers in all price points. Obviously the lower the price point, the larger pool of buyers there is and hence a greater likelihood of multiple offers in the lower price points,” says Crystal Tost, a realtor with RE/MAX Realty Professionals in Calgary.

But it’s also taking place in the luxury market with 63 homes sold for more than $1 million and eight of those sales involving bidding wars, including a $3.5 million home, added Tost.

“Eager buyers that want to find a home will have to make sacrifices to get to the homes the day they are listed in order to have a chance at buying the home of their dreams. While true average days on market are currently at 40 days, this is not the case in most sales,” she said. “Homes that offer a good location, in desirable areas, priced reasonably will sell in hours to a few days in the current marketplace.”

Tost said in-migration to the city continues to contribute to the already busy real estate market and there is more activity from move-up buyers who have the ability to upgrade because of more equity in their homes now as the prices have gone up.

“With an estimated 30,000 people moving to Calgary for 2014 our housing market and rental markets will remain strong throughout the balance of the year,” said Tost, adding the current market is not ideal for buyers.

“It places so much stress on them to make fast decisions, life changing decisions on a 10-minute visit to look at a home. Sellers still have to be mindful when pricing their home. Smart savvy buyers won’t over pay on an overpriced home, but are more likely to bid in a bidding war on a home that seems like a fair offering.”

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