Predicting the unpredictable. As parts of our City face unprecedented issues due to the flooding of just over a week ago, now comes the recovery and clean up and questions about how recent events will impact the Calgary Real Estate Market. It was extremely challenging to watch the events unfold and I've spoken to numerous clients that have been displaced, some temporarily but some facing major challenges. I never expected to receive photos of a cat rescue in Bowness by canoe with waters rising above the home's main level.
The City of Calgary residential sales numbers for June don't really show any indications. Due to the nature of condition periods on offers, I believe the first indications on a statistical basis will be seen in the July numbers at the earliest. The adjustments or other arrangements made for those homes that transferred owners last week won't be seen on a statistics report and it is too early to understand repair needs, insurance and disaster relief options. Last week, roads were closed and schools closed. Many fewer people were out looking at property than normally expected.
That being said, the City of Calgary was experiencing a strong real estate market prior to the floods. The rental market was also tight with 1.5% vacancy rates reported in most areas. It is not known how many units, especially rental units, were damaged during the floods and this impact on the rental market. A substantial area of the city was undamaged so it is not known whether displaced renters/owners will find new options or wait for remediation. There are less listings on the market with higher sales numbers and now areas of the city that are potentially removed from the sales pool for a time. In this environment, one would expect an increase in prices in most areas in the short term.
Some major new developments also received damage while under construction in the flood zone and we await news of the impact on expected completion dates. With the huge efforts ahead, our city will need more workers to repair and rebuild. All those folks will need a place to live, whether as owners or renters. However, there are many homeowners who now face challenges in selling their home and may hold off on a previously planned move.
All the best to you and your family and our collective thoughts go out to those that lost their homes or were impacted by this flood. Enjoy Stampede and our celebration of the spirit that is Calgary, Hell or High Water.
Notable Numbers from CREB:
City of Calgary monthly residential sales totalled 2,317, a six per cent increase over June 2012 figures, and nearly five per cent higher than levels recorded in the first half of 2012.
Active listings totalled 4,584 units in June, of which more than 660 units are listed in flood-affected areas. Active listings are nearly 20 per cent less than last year.
Condominium sales growth outpaced gains in the single family sector, as less availability of single-family homes priced at less than $500,000 have improved the demand for the relatively affordable condominium market.
After the first six months of the year, condominium apartment sales totalled 2,034 units a 9.5 per cent increase over 2012. Meanwhile, year-to-date condominium townhouse sales amounted to 1,672 units, up from 1,374 sales recorded in the first half of 2012.
The benchmark price for condominium apartments and townhouses were a respective $264,000 and $295,000 for the month of June 2013. Condominium prices have increased by more than six per cent on a year-over-year basis, but remain below unadjusted peak levels.
Single-family sales activity totalled 1,638 units in June, a two per cent increase over 2012. However, after the first two quarters, single-family sales totalled 8,573 units, a one per cent increase over last year.
The single-family market moved into seller’s territory ahead of the condominium market, supporting stronger price growth. As of June the single-family benchmark price reached $459,700, a 6.7 per cent increase over the previous year.