Contrary to years past, the first months of 2013 have seen a flurry of activity in Calgary real estate with many homes selling within days of listing.
According to the Calgary Real Estate Board, the quick sales have been prompted by a reduction of the number of homes on the market. In 2013, there are nearly 20 per cent less home listings compared to last year.
"So what we're seeing happening is product that is not staying on the market as it used to,” says Ann-Marie Laurie of the CREB. “The number of days on market is starting to decline and that's starting to push up prices"
With fewer homes available for sale, the average price of a single family home has gone up by about nine per cent over the same time frame in 2012.
The reason for this current spike in price is due to an increase in house sales in the luxury market. This month, 63 homes have been sold for more than a million dollars in Calgary, a record for the month of March.
While demand for homes has increased, realtors warn potential sellers of the pitfalls of aggressively pricing their homes.
“I caution people to not get overconfident into thinking that they’re going to be able to make ridiculous profits the way we did back in the last boom,” says Jenn Stephensson, a realtor with the Stephenson Realty Group.
Less supply and high demand for single family homes also means the condo market is strong.
If the number of listings increases, the CREB expects the overall the number of home sales for 2013 will be on par with last year.
(With files from Kathy Le)
