Calgary’s outskirts are now seeing intensified housing competition, with four of seven local markets in the region going to sellers’ territory as of July.
A new analysis by Zoocasa has identified Okotoks as the most heated sellers’ market, with a sales-to-new-listing ratio (SNLR) of 73% and an average price of $415,300. This represented an 8% annual increase in the municipality’s SNLR, around 3.7% annual sales growth, and a 7.4% decline in new listings during the same time frame.
Airdrie was the next liveliest market with its SNLR of 68% and an average sales price of $331,100. The trend was driven by its 13% increase in sales and its 8.5% shrinkage in listings.
Cochrane came at a close third with its SNLR of 65% and an average of $408,300, although a closer look would reveal that the internals were fundamentally different from the previous two markets. Sales have remained virtually flat, while new listings fell by a significant 31.8% year-over-year.
Calgary itself was also in sellers’ territory as of July, with an SNLR of 61% and an average residential sales price of $425,700.
Earlier this month, CREB chief economist Ann-Marie Lurie assured that Calgary will enjoy sustained housing performance for the rest of 2019. Continuous economic recovery will fuel much of this dynamism.
“Supply continues to adjust in the resale market, but also in the new-home and rental markets. Reductions in housing supply are expected to move the resale market toward more balanced conditions and support price stability by the end of the year,” Lurie told the Calgary Sun.
However, Lurie stressed that “while prices may stabilize, on an annual basis they are expected to remain below last year’s levels.”
“With current economic conditions, we expect housing demand will remain similar to levels recorded last year,” she said. “Supply declines will help to better position the broader market for recovery moving into 2020.”