Calgary Real Estate Market Starting to Shift - June 2010
Statistics released by the Calgary Real Estate Board indicates that the Calgary housing market showed a decline in May of 2010.
Sales of single family homes in Calgary have decreased by a 20 per cent over the same time a year ago in May. Condominium transactions have seen a decrease of 21 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 – “The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes. We believe there are a number of factors contributing to this marked slowdown including a declining number of first-time homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis.”
Looking at the numbers in more detail, there were 1,262 single family homes sold in Calgary last month. This is a decrease of 7 per cent in April 2010 then 1,352 single family homes exchanged hands in the Calgary real estate market. At the same time last year, 1,584 single family homes got traded in the month of May 2009. In May of 2010, 518 condominiums have been sold vs. 639 units in April or a 19% month to month decrease. In May of 2009 653 condominium sales were recorded.
“Consumers are feeling a little nervous about the recent instability of the stock markets—and with mortgage rate hikes behind us, it’s understandable that feelings of urgency among buyers have lessened,” adds Scott.
Average Price of a Single family home in Calgary
• May 2010 - $483,240 (an increase of 11% compared to a year ago)
• April 2010 - $460,378
• May 2009 - $436,427
Average Price of a Condominium in Calgary
• May 2010 - $304,662 (an increase of 11% compared to a year ago)
• April 2010 - $289,588
• May 2009 - $275,212
Single family home listings in Calgary
• May 2010 – 2,966 (an increase of 33% compared to a year ago)
• April 2010 – 3,082
• May 2009 – 2,235
Condominium listings in Calgary
• May 2010 – 1,221 (an increase of 22% compared to a year ago)
• April 2010 - 1,335
• May 2009 – 998
Median Price of a Single family home in Calgary
• May 2010 - $420,000 (an increase of 8% compared to a year ago)
• April 2010 - $417,000
• May 2009 - $390,000
Median Price of a Condominium in Calgary
• May 2010 - $279,900 (an increase of 10% compared to a year ago)
• April 2010 - $267,500
• May 2009 - $255,000
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.
“Our inventory is shifting to higher price points as move-up buyers enter the market. This has resulted in an overall boost in average price,” says Scott. “Nonetheless our days on market year-over-year has decreased—suggesting that competitively priced homes are selling.”
“I believe this recent decline in sales is the result of an unsmooth transition from a first-time buyer market to a move-up buyer market. And it is likely that investors who waited out 2009 are now listing second homes and condos—giving an added boost to our inventory,” says Scott.
“Nonetheless our economic fundamentals, including employment and net migration, seem to be building momentum and Canada’s overall outlook is positive. These steady improvements should offer some stability to Calgary’s housing market as we enter the second half of 2010,” adds Scott.
Source: CREB
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All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
Disclaimer: Information herein deemed reliable but not guaranteed by the CREB and EREB.
Last updated on: 2012-02-13 00:18:50
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