By MARKUS ERMISCH, Sun Media
Spring is in the air in Calgary, as the city’s real estate market appears to have come out of hibernation.
Calgary realtors sold 1,392 homes in the resale market last month, compared to 928 units sold in January, says data released Monday by the Canadian Real Estate Association.
Sales were also more brisk across the entire country, as 28,669 homes changed hands in February, an increase of approximately 9% over January levels.
However, CREA president Calvin Lindberg pointed out that it’s normal for sales to pick up as spring approaches.
Bonnie Wegerich echoed these comments.
Low mortgage rates could also help explain at least some of the increase in sales, Wegerich said, noting she’s heard of five-year rates well below 4%.
But despite the seasonal uptick, sales are still significantly lower than one year ago, even though mortgage rates are decreasing and homes are cheaper than in 2008.
In Calgary, the number of unit sales was trailing year-ago levels by 36% in February, while the average MLS residential price of $370,198 was 11% lower than one year ago.
This means Calgary is still is among those cities that are continuing to see the most rapid deflation in the real estate market in Canada.
Nationally, unit sales dropped 30% in February compared to one year ago, and average prices were 8% lower at $308,142.
Unit sales in Greater Vancouver plunged by 45% in February compared to one year ago, the steepest of any Canadian city, followed closely by Saskatoon, which saw sales fall by 43%.
Commenting on the national numbers, BMO Capital Markets economist Douglas Porter said that “it looks like the category 5 hurricane, which had been pounding the home resale market, has been downgraded to ‘just’ a category 4.”
Porter said buyer’s market conditions won’t vanish any time soon.
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