Calgary prices, sales up from February levels
The residential resale market showed signs of life again in March, both nationally and at a local level.

Calgary Herald ArchiveThe average price of a resale home in Calgary edged up in March to $372,114 from $370,198 in February.

According to data released Wednesday by the Canadian Real Estate Association, average sale prices and sales increased last month in Calgary from February levels, but remained down compared with a year ago.

The average residential MLS sale price in Calgary (including all property types) was $372,114 in March, down 11.3 per cent from a year ago. Sales were down by 24.3 per cent to 1,797 units, new listings were down by 38.7 per cent to 3,792 units and total dollar volume for all transactions was off by 32.8 per cent compared with a year ago to $668.7 million.

In February, Calgary’s average sale price was $370,198 for a total of 1,392 sales.

Price reductions are working as intended: namely, they’re drawing buyers to the market, said Gregory Klump, the association’s chief economist.

“They’re taking advantage of improved affordability.”
At the same time, he said, lower mortgage rates are making it easier to buy a home.

In Alberta in March, the average price fell by 10.4 per cent from a year ago to $327,919, sales dropped by 23.2 per cent to 4,115 units, new listings declined by 30.3 per cent to 9,528 units, and total dollar volume for all transactions was off by 31.2 per cent to $1.3 billion.

In February, Alberta’s average sale price was $326,785 for 3,231 sales.

At the national level last month, the real estate association said the average price fell by 7.7 per cent from a year ago to $288,641 and sales were down by 13.7 per cent to 35,225 units.

The national price drop was the smallest year-over-year decline in six months.

“Housing markets are starting to show signs of buyer interest because of lower prices and interest rates,” said real estate association president Dale Ripplinger. “We expect April sales activity will feel some effects from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers’ Plan, and the First Time Buyer Tax Credit.”

The association’s report provides evidence that housing market activity may have improved modestly as homebuyers take advantage of the improved conditions, said Millan Mulraine, economics strategist with TD Securities.