High demand, low supply, limited purchasing power may fuel hot summer market

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Limited purchasing power contributes to increasing sales in multi\u002Dfamily housing.

And sales for the housing type would have likely been higher if more supply existed under $650,000, Lurie notes.

Although the benchmark price for a detached home increased more than four per cent year over year to $674,000 — driven by higher sales in the upper end market — sales in May fell eight per cent from the same period last year, CREB numbers show. Row homes benchmark price rose nine per cent year over year to $390,500, though sales were down for the row — or townhomes — segment by 10 per cent.

Overall, market demand reflects the new reality in Calgary where single-family detached home prices have reached heights fewer first-home buyers can afford.

 

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