First-time Homebuyers Retreat As Luxury Buyers Advance - July 2010

Posted by Joe Samson & Associates on Monday, July 5th, 2010 at 7:25am.

Statistics released by the Calgary Real Estate Board indicates home sales continued to show a marked year-over-year decline in June of 2010.

Sales of single family homes in Calgary have decreased by a 42 per cent over the same time a year ago in June. Condominium transactions have seen a decrease of 40 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 – “We are seeing continued moderation in Calgary’s home sales in the face of higher mortgage rates, increased inventory levels and a decreasing number of first-time homebuyers entering the market. Our sales trends in June reflect much of what we saw in May.  Changes to mortgage rules meant a good portion of homebuyers wanted to get in before the new regulations took effect in April.  This, along with rising interest rates on the horizon, pulled forward sales we might have expected in May and June.”
 
Looking at the numbers in more detail, there were 1,061 single family homes sold in Calgary last month. This is a decrease of 16 per cent in May 2010 then 1,262 single family homes exchanged hands in the Calgary real estate market. At the same time last year, 1,837 single family homes got traded in the month of June 2009. In June of 2010, 445 condominiums have been sold vs. 518 units in May or a 14% month to month decrease. In June of 2009, 738 condominium sales were recorded.

Conversely, sales of million-dollar-plus properties jumped by nearly 42 per cent year-to-date until the end of June, compared with the same period a year ago.

“The one market that seems to be bucking this moderating trend is the luxury or higher-end market,” notes Scott. “Calgary home sales continue to shift to higher price points. This has resulted in our average price holding firm.  Homes in the higher price range have performed well and account for a larger portion of sales as move-up buyers enter the market.  In the first six months of this year, 187 single-family homes in the city of Calgary sold for $1 million or more, compared with 132 in 2009.”

Average Price of a Single family home in Calgary
• June 2010 - $481,964 (an increase of 8% compared to a year ago)
• May 2010 - $483,240
• June 2009 - $447,142

Average Price of a Condominium in Calgary
• June 2010 - $292,238 (an increase of 2% compared to a year ago)
• May 2010 - $304,662
• June 2009 - $285,595

Single family home listings in Calgary
• June 2010 – 2,733 (an increase of 22% compared to a year ago)
• May 2010 – 2,966
• June 2009 – 2,244

Condominium listings in Calgary
• June 2010 – 1,084 (an increase of 17% compared to a year ago)
• May 2010 - 1,221
• June 2009 – 927

Median Price of a Single family home in Calgary
• June 2010 - $418,900 (an increase of 5% compared to a year ago)
• May 2010 - $420,000
• June 2009 - $399,000

Median Price of a Condominium in Calgary
• June 2010 - $269,900 (an increase of 2% compared to a year ago)
• May 2010 - $279,900
• June 2009 - $265,500

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.

“We had an impressive housing recovery in the late spring and summer of 2009.  As expected this rate of recovery will moderate in the latter half of 2010 in the face of rising mortgage rates and slowing demand—keeping Calgary’s housing market in balance,” says Scott.

“Nonetheless the economic outlook for Calgary and for Canada remains upbeat and should ensure consumer confidence remains in positive territory for the balance of 2010,” adds Scott.

Source: CREB

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Last updated on: 2012-02-13 00:18:50

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