Welcome back! I hope you all had a great weekend.
I’ll touch again on that “deluge of buyers” news article published last week that was long on opinion and short on fact.
There was a very interesting article in the Calgary Herald this weekend where it quoted an Elbow Park homeowner that was flooded out.
Even though she lives in a neighbourhood where the average cost of a house tops $2 million, much of her equity was put into the home.
“There’s a big perception out there that just because we live in the neighbourhood that we live in, that we’re going to be able to bounce back from this financially,” she said. Some of the damages will be covered by an insurance company, she said, but that isn’t enough to restore her house to its pre-flood condition. “That comes nowhere to where we’ve hit financially.”
It’s no surprise that not everyone with a flooded multi-million dollar home can afford to rush out and buy another one. The facts didn’t support that assumption of a buyer spike then, and they still don’t support it now.
Through 3 weeks in July, sales are down -10.5% from the same period last month, -9.4% from May and -9.2% from April. I think we can safely put the post-flood buyer surge nonsense to bed.
All that being said, the Calgary real estate market is hot right now.
Overall sales in Calgary are up 9.24% year-over-year and are at the second highest level in a decade. Only in 2005 were sales higher month-to-date.
SFH average prices in July are currently up 11% y/y, while the median is up 5%.
Condo-townhomes have an interesting statistic: the Sales to New Listing ratio is at 111.96%. That means more townhomes are selling than are being listed, draining inventory even further. You can view more statistics in the snapshot below.
The luxury market in Calgary continues to boom.
Through 3 weeks in July, 51 properties (49 single family homes and 3 condos) have sold for a million and over. That surpasses last July’s month-end total of 39. The luxury sales record for July was set in 2007 with 61 sales – another record we’re on pace to break.
The most expensive sale month-to-date was a $4,645,000 home in Mount Royal.
Whether you’re looking to buy or sell, feel free to contact me. I would be glad to assist.
Mike Fotiou, Associate Broker
First Place Realty