Hopeful home buyers across the city of Calgary can start breathing a sigh of relief as the tight inventory starts to open up. More properties are starting to make their way onto the listings as the market heads into more balanced conditions.
According to the Calgary Real Estate Board's chief economist, Ann-Marie Lurie, there are more listings being added - especially in the condo sector. This is good news for people that want to take a step forward into home ownership but simply cannot afford to purchase a single-family home right now.
In the single-family housing sector, it's becoming more difficult to find a home that's priced less than $400,000. As a result, many home buyers are looking at the condo market instead. Calgary has also been experiencing a tight market for rentals during the last year due to heavy migration into the city. This has helped to drive the prices up as consumers conclude that condo ownership makes a lot more sense than spending money on high rental units.
Migration levels also appear to be easing somewhat in the city, which will help bring the Calgary real estate market into a better balance. As the market becomes more balanced, the price growth on homes will ease as well. In July, the single-family benchmark price for a home was $511,600. This was a rise of 10.8% when compared to the numbers that were reported in July, 2013.
The benchmark price for a condo in July was $298,100 while the benchmark price for a townhome was $327,000. While this was an 11% rise when compared to the prices in July 2013 for both sectors, these multi-family housing options still remain affordable. Many buyers use a condo or a townhouse as a stepping stone towards purchasing a single-family dwelling in the future.