Will Calgary Face A Resale Housing Shortage?

For the first time in years single family home (SFH) month-end inventory hasn’t breached the 4,000 mark throughout the course of the year. The amount of homes for sale is down over 25% from a year ago. Meanwhile SFH sales have marked year-over-year increases every month this year save for January, with a couple months seeing 30%+ jumps.

With increased migration to the province, is Calgary facing an inventory shortage in the months to come? Will the new mortgage rules damper demand sufficiently to offset the lower supply?

SFH Inventory History (click to enlarge image)

SFH September Inventory Comparison (click to enlarge image)

Condo September Inventory (click to enlarge image)

Sales % change year-over-year (click to enlarge image)

Inventory Absorption (click to enlarge image)

2 responses to “Will Calgary Face A Resale Housing Shortage?

  1. Quote of the Week (and it’s only Tuesday) 😛

    “Interest rates are also holding, but should they increase by as little as 1%, that would negate a 10% drop in purchase price. People shouldn’t wait for prices to drop, because we never know when interest rates will be increased to stimulate the economy.”
    President of the Victoria Real Estate Board
    (October 1, 2012)

  2. Housing Inventory is very low – by my reckoning, we are at levels not seen since late summer 2009, and before that early 2007. Each time levels were this low, the prices went up considerably but not this time – I am guessing that is because mortgage rules are not allowing for rapid increases any more. We’ll see of this continues through winter – the inventory is low from low listings and not from high sales numbers.

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