Calgary MLS sales down, but prices up in April

Average price at just under $412,000

 

By Mario Toneguzzi, Calgary Herald

 CALGARY — MLS sales in Calgary fell in April compared with a year ago but the average sale price climbed, according to the Canadian Real Estate Association.

In data released Tuesday, CREA said residential MLS transactions in the city dropped by 12.4 per cent to 2,087 units.  However, the average sale price increased by 4.0 per cent to $411,875.  “The Calgary real estate spring market seems to be buzzing,” said Tanya Eklund, a realtor with RE/MAX Real Estate Central in Calgary. “The warm sun is showing its face and this puts buyers and sellers in a great mood. When looking at the stats however we seem to be mimicking last year’s spring market and overall total MLS sales have fallen a few per cent since last spring.

“I feel the demand within our client base has definitely picked up. We are appraising more homes on a weekly basis and buyers are making decisions. We have even seen a few multiple offers on homes that have been well priced.”  CREA said new listings in Calgary dropped by 22.7 per cent in April to 4,184 units. And the sales as a percentage of new listings increased by 5.9 per cent to 49.9 per cent.

“I do believe the spring brings out a feeling for people that the market is picking up. This is also combined with currently low interest rates and buyer confidence is up a little but not up to what it needs to be to have a balanced market,” said Eklund. “The buzz word this year is stability; the buzz word last year was recovery. I have many clients that have mentioned they see more sold stickers up on signs which is interesting because we are actually down in sales this year over last for total MLS. Another reason may be interest rates will be going up at the end of the summer which has been stated by the Bank of Canada.”  With the stable market, Eklund said the city is not experiencing the highs and lows in residential real estate like it did between 2006 and 2009.

“We are not in the 2006 market anymore and prices have fallen since the 2006-2007 rise,” she said. “Once people realize this and sellers are more realistic in their pricing this will also create more of a demand.”

In Alberta, MLS sales in April were down 9.6 per cent from a year ago to 5,012 transactions while the average sale price jumped by 1.1 per cent to $358,865.  Nationally, sales were down 14.7 per cent year-over-year to 44,356 transactions but the average price rose by 8.0 per cent to $372,544.

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