April was a record month for sales in Calgary’s housing market.
The Calgary Real Estate Board said sales activity rose six per cent compared to last year with 3,401 properties changing hands -- a record high for April -- although it noted sales slowed from the prior month.
“Despite some of the monthly pullback, it is important to note that sales remain exceptionally strong and are likely being limited due to supply choice in the market,” said Ann-Marie Lurie, chief economist with the Calgary Real Estate Board, in a release on Monday.
“While further rate increases will likely start to dampen demand later this year, more pullbacks in new listings this month are ensuring the market continues to favour the seller, resulting in further price gains."
New listings fell by 2.1 per cent year-over-year. The overall supply of homes in Calgary has remained below two months since November.
The benchmark price of a home hit $526,700, a two per cent rise from March and a 17 per cent jump compared to April of last year, according to the board.
“With new listings declining more than sales, market conditions have tightened during the month and continue to show a market favourable to sellers,” National Bank economists said in a note to clients following the release of the data.
“Indications are that Calgary's housing market will continue to be strong this spring as many buyers who locked in favourable rates before the recent backup in yields take advantage of a booming economy supported by surging energy prices to buy before their guarantee expires.”
Calgary’s housing market has been in the spotlight recently with some real estate experts pointing to homebuyers originally from Ontario who are searching for affordable investment properties as being partly behind the elevated demand.
While home prices are rising in Calgary, they’re still well below benchmark prices in Canada’s hottest housing markets such as Vancouver and Toronto which have hovered above the $1 million mark for several years.