Following a booming month of sales activity in April, Calgary’s resale housing market continued its frenzied pace in May with MLS sales and prices soaring compared to a year ago – and another record being set.
According to the Calgary Real Estate Board, sales of 2,989 in May were up 177.3 per cent from a year ago.
New listings of 4,562 rose by 88.6 per cent year over year while active listings at the end of the month were up by 13.60 per cent to 6,782.
The median sale price rose by14.21 per cent to $458,000 while the average MLS sale price of $510,908 increased by 16.31 per cent. The total residential price – the benchmark price – rose by 10.6 per cent to $455,200.
It also took less time in May to sell a home as the average days on the market fell to 32 from 60 a year ago, which represented a 46.67 per cent decline. Also the months of supply, which measures how long it would take for all the inventory to be sold at the current demand, has fallen by 59 per cent from a year ago to 2.27 months.
“The recent gains in prices have encouraged more homeowners to list their homes and take advantage of the current market situation,” said Ann-Marie Lurie, CREB’s Chief Economist.
“However, the inventory gains are still not enough to offset the demand growth and the market continues to favour the seller. Prices are rising, but they are still recovering in our market from previous highs in 2014. Only detached and semi-detached home prices in certain districts and communities have recovered to the level of previous monthly highs.”
Sales have been rising across all product types, but homes priced above $600,000 represent a larger-than-usual share of all sales. The upper end of the market only reflected 16 per cent of city sales last May, compared with this year where it now reflects nearly 26 per cent of all sales, added CREB.