April 15, 2014 | CREBNow
Strong Demand In Surrounding Areas Causes Declining InventoriesFor the third consecutive quarter, sales growth in all communities surrounding Calgary was in the double digits. In addition to lifestyle preferences, demand in surrounding areas has improved due to the relative price advantage over Calgary and less supply constraints in many of the surrounding markets.
During the first quarter of the year, 44 per cent of new listings in surrounding areas were priced below $400,000. Within the city of Calgary, 23 per cent of single family homes were under this price point. New listings in surrounding areas totaled 1,110 units after the first quarter, a two per cent increase over the previous year. Meanwhile, sales totaled 1,104 units, accounting for a 28 per cent increase over the previous year.
The strong sales growth has pushed down inventory levels in surrounding areas. However, this market was better supplied prior to this quarter. On aggregate, market conditions are not as tight in surrounding areas relative to the single family market within the city of Calgary.
Economic growth in the Calgary area has resulted in a large inflow of net migrants to the region. The tight rental market conditions coupled with less selection in the resale market has contributed to the rise in housing demand. Surrounding areas provide an alternative for price sensitive consumers and those looking for a specific product type that may be unattainable within city limits.
2014 Q1 Surrounding Towns Statistics - CREB®