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Housing Market Watch – Fourth Quarter 2014

“YTD Airdrie Values Exceed Previous Market Highs AGAIN!”

While Airdrie has been in a seller’s market for nearly 2 years, the lower crude prices are expected to impact the housing supply levels with a rise in the number of listings which will push the market toward more balanced conditions, supporting price stability.

Airdrie posted record sales in 2014 with a 28% increase, totally 1695 homes sold. Our best month of sales was last June in which 197 of the 244 homes listed sold (81%). Airdrie’s average resale price was $386,945, an increase of 8.5% over 2013, exceeding highs of previous years 2008 and 2013.

CREB’s chief economist Ann-Marie Lurie, “credits the sales growth on consumer demand for detached homes and the great lifestyle choices Airdrie has, as well as our relative affordability & selection, especially in the lower price range, which Calgary currently lacks.”

Single-family homes average price is $427,881, up 10% from last year and up 13% from the 2008 high price. Demand outpaced growth in new listings, resulting in a reduced supply, continuing the sellers market throughout 2014. Average days-on-the-market (DOM) was 33 for single-family homes, a 22% decrease over the previous year. Single-family home sales account for 76% of all sales on the Airdrie market.

2014 saw the best recovery of prices in single-family home, however the combined condominium average prices are only 1% off of recovering from the 2007 high. This is probably accounting for the steep increase of 47% in condo prices in 2005 (grossly overly inflating their price), and the gradual loss in price over 2007 to 2011 – with only increase in 2012-14.

Townhouse condominium sales posted an 81% increase in sales over the year. Average price increased 9% from $263,063 to $286,607. DOM showed a decrease in 22% to 31 days on market average.

Apartment condominium sales were extremely healthy with 158 as compared to 94 last year, posting a 68% increase in sales. The average sales price for apartment condos increased 10% from $192,516 in 2013 to $211,669 in 2014. Days on market decreased 28% to 36 days on the market.

Airdrie had a 28% growth in sales in 2014, Okotoks a 10% increase, Cochrane with a their best sales in years at 35%, Strathmore also a record of 41% increase in sales. Our smaller neighbours faired well with Irricana boasting a 64% increase in sales, Carstairs a 10% increase and Crossfield 22% increase. Calgary saw a 12% growth in sales volume.
Airdrie’s Cooper Crossing boasted 5 properties over a million dollars in 2014, the top priced house selling for $1,460,000. It originally listed at $1,500,000 but taking nearly a year to sell.

According to CREB, “Calgary’s regional housing market benefited from a strong demand because of positive economic fundamentals in 2014. However in 2015 we may see a pullback due to overall employment levels to remain steady, drop in net migration, coupled with energy sector uncertainty will all impact the housing market”. The first positive factor has been the lower of prime interest rates from the Bank of Canada.

Gary Lock is a local Realtor® with CIR Realty and has lived in Airdrie for the past 30 years.