May 1, 2014, Resale growth up 28 per cent in areas near Calgary

By Josh Skapin, Calgary Herld April 17, 2014

CREB president Bill Kirk says that many buyers have turned to areas surrounding Calgary for the lifestyle and “relative price advantage” they offer.

Resale activity in cities and towns surrounding Calgary climbed 28 per cent in the first three months of 2014 over the same time last year, says the Calgary Real Estate Board.

From Jan. 1 to the end of March, 1,104 homes changed hands, up from 865 deals during the same span in 2013.

This is the third consecutive quarter these communities saw double-digit sales growth from a year earlier.

CREB president Bill Kirk says many buyers have turned to these areas for the lifestyle they offer and the “relative price advantage.”

The benchmark price for homes sold in these areas during the first three months of 2014 was $357,033. This marks a five per cent increase from $338,967 a year ago. The benchmark price is that of a typical home based on a formula that uses various factors to ensure accurate comparisons.

“Surrounding areas provide alternatives for price sensitive consumers and a selection of product types that may not be attainable in Calgary,” says Kirk.

New listings grew two per cent during the first quarter of 2014. There were 1,799 homes added to the market from Jan. 1 to the end of March compared to 1,760 during the same time in 2013.

“The economic growth in Calgary has resulted in a large inflow of net migrants to the city,” says CREB chief economist Ann-Marie Lurie.

“This has boosted housing demand across the region. For many of the surrounding areas, the demand growth has helped reduce some of the excess inventory levels, supporting price recovery.”

Larger centres near Calgary such as Airdrie, Cochrane and Okotoks saw an uptick in sales during the first quarter.

The biggest increase came in Cochrane, where sales jumped 76 per cent.

During the first three months of the year, 174 homes changed hands in Cochrane, up from 99 transactions a year earlier. The benchmark price of these sales was $418,500, up six per cent from $396,400 during the same time in 2013.

In Airdrie, sales increased 27 per cent with 336 deals from Jan. 1 to the end of March compared to 264 a year ago. The benchmark price during this time was $365,297, up 6 per cent from $343,767 in the first three months in 2013.

South of Calgary in Okotoks, there were 149 sales. This marked a 19 per cent improvement from 125 deals in the first quarter of last year. The benchmark price increased 4.5 per cent to $391,867 from $374,967 during the same time last year.