The housing market in Calgary for resale homes experienced the highest price growth in Canada during the month of July. According to the Canadian Real Estate Association's “MLS Home Price Index”, prices for resale homes in this area went up by 10.48% in July compared to the prices that were reported at the same time last year.
On a national level, however, there was a rise of only 5.3% on a year-over-year basis. During the previous 3 years, Calgary has experienced the highest price growth rate at 25.01%. The national average during these years was only 12.52%. Toronto came in second place in terms of resale price growth at 7.88%.
The price growth in the Calgary area has been influenced by tight market conditions with a limited supply of new homes being added to the listings. At the same time, it's been difficult for residents to find vacant rental units. These two factors, combined with population growth that has hit record numbers, all add up to significant price growth in the Calgary resale market.
This July, 3,177 homes changed hands in the Calgary area. This was a 6.8% increase when compared to the amount sold in July 2013. Sales in Alberta went up by 5% to 7,194 units sold. On a national level there were 48,000 homes sold in July, which was a 7.2% rise when compared to the numbers that were reported in July last year.
Market conditions across the Calgary area are now becoming more balanced as prices start to level off. Even so, the gains recorded on a year-over-year basis for the rest of this year will remain high due to the strong price gains that occurred during the first half of 2014. The average price of a Calgary single-family home went up to $460,790 in July, which was a 5.2% rise on a year-over-year basis. Nationally, the price average went up 5% to $401,585.