Calgary Housing Market in a Period of Correction - September 2010

Posted by Joe Samson & Associates on Thursday, September 2nd, 2010 at 9:08am.

Statistics released by the Calgary Real Estate Board indicates that home sales continued to trend lower in the month of August, 2010.

Sales of single family homes in Calgary have decreased by a 32 per cent over the same time a year ago in August. Condominium transactions have seen a decrease of 42 per cent compared to twelve months ago in the Calgary real estate market.

Diane Scott, president of the Calgary Real Estate Board has said that – “Calgary’s housing market has been undergoing a measured correction over the past 4 to 5 months.  Sales are trending lower as a result of a decrease in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery.

There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer’s market.  

A slower than anticipated pace of mortgage rate hikes and continued improvements in employment are more likely to bring stability rather than volatility into Calgary’s housing market as we move into 2011,” adds Scott.

 
Looking at the numbers in more detail, there were 867 single family homes sold in Calgary last month. This is a decrease of 5 per cent compared to July 2010 then 915 single family homes exchanged hands in the Calgary real estate market. At the same time last year, 1,277 single family homes got traded in the month of August, 2009. In August of 2010, 364 condominiums have been sold vs. 396 units in July or an 8% month to month decrease. In August of 2009, 632 condominium sales were recorded.

“We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011,” says Scott.

“Homebuyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region.  A case in point is the relative strength of Calgary’s town and country market, where sales have remained at 2009 levels.  Homebuyers and sellers should speak to a REALTOR® to better understand the opportunities in our current market,” says Scott.


Average Price of a Single family home in Calgary
• August 2010 - $445,617 (a decrease of 2% compared to a year ago)
• July 2010 - $464,655
• August 2009 - $454,130

Average Price of a Condominium in Calgary
• August 2010 - $286,384 (an increase of 1% compared to a year ago)
• July 2010 - $291,168
• August 2009 - $283,330

Single family home listings in Calgary
• August 2010 – 1,960 (an increase of 3% compared to a year ago)
• July 2010 – 1,942
• August 2009 – 1,910

Condominium listings in Calgary
• August 2010 – 808 (a decrease of 9% compared to a year ago)
• July 2010 - 890
• August 2009 – 832

Median Price of a Single family home in Calgary
• August 2010 - $395,000 (a decrease of 1% compared to a year ago)
• July 2010 - $400,000
• August 2009 - $400,000

Median Price of a Condominium in Calgary
• August 2010 - $260,000 (no change compared to a year ago)
• July 2010 - $268,000
• August 2009 - $260,000

All city of Calgary MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“Total month end inventory for the wider Calgary region is down marginally when compared to July—a trend we expect will continue in the coming months.  New listings are also likely to recede in the coming months in response to slowing sales,” adds Scott.

Source: CREB

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