Home Sales in Calgary Remain Strong!

Posted by Joe Samson & Associates on Tuesday, December 1st, 2009 at 3:20pm.

Statistics released by the Calgary Real Estate Board indicates that the Calgary housing market remains on a robust curve towards recovery.

Sales of single family homes in Calgary have increased by a whooping 63 per cent over the same time a year ago. It came as an even more pleasant surprise that condominium transactions were up by a shocking 77 per cent compared to twelve months ago in the Calgary real estate market.

Bonnie Wegerich, president of the Calgary Real Estate Board has said that - “November sales are clearly demonstrating that the recovery in the Calgary housing market has staying power. We have now seen six consecutive months of year-over-year sales increases for both the single-family and condo markets.  And November sales are in line with what we would expect this time of year in a balanced and normalized market.”

Looking at the numbers in more detail, there were 1,095 single family homes sold in Calgary last month. It is a modest 15% decrease when compared to the month of October when 1,285 single family homes exchanged hands in the Calgary real estate market. In November of 2009, 504 condominiums have been sold vs. 601 units in October or a 16% month to month decrease.
This month to month decrease is more likely due to the approaching holidays as some home sellers now may prefer to delay their transaction until the spring. The best comparison to keep in mind is the amount of real estate sold over a year ago in Calgary. In the month of November 2008, there were only 670 single family homes and 284 condominiums sold.

“Clearly low borrowing costs are helping to fuel this recovery,” says Wegerich.  “Many buyers want to get in while mortgage rates remain at record lows. Better employment numbers and an improving economic outlook are giving the market an added boost.”

Many first time home buyers are coming out of the closets to take advantage of low interest rates and to add fuel to the rebounding real estate market in Calgary. A very obvious sign of first time home buyers being present in the market is the reflection of condominium sales.

Another positive news this month is the increase in average prices of single family homes. This is a great indication of move-up buyers re-entering the market place and it shows how the economy is well on its way to stabilize.

Average Price of a Single family home in Calgary
• November 2009 - $464,444 (an increase of 7% compared to a year ago)
• October 2009 - $462,465
• November 2008 - $435,471

Average Price of a Condominium in Calgary
• November 2009 - $294,264 (an increase of 3% compared to a year ago)
• October 2009 - $289,155
• November 2008 - $285,820

A healthy appetite for new listings to come on the market coupled with decreasing inventory is starting to increase prices and maintain a balanced market by having an absorption rate of less than 2.5 months. More likely prices will remain steady and slowly keep on creeping upwards  - but it’s unlikely to expect a noticeable price increase in the near future.

Single family home listings in Calgary
• November 2009 - 1,365 (a decrease of 13% compared to a year ago)
• October 2009 - 1,819
• November 2008 - 1,567

Condominium listings in Calgary
• November 2009 - 705 (a decrease of 5% compared to a year ago)
• October 2009 - 859
• November 2008 - 741

Median Price of a Single family home in Calgary
• November 2009 - $408,000 (an increase of 5% compared to a year ago)
• October 2009 - $410,000
• November 2008 - $387,300

Median Price of a Condominium in Calgary
• November 2009 - $264,900 (an increase of 5% compared to a year ago)
• October 2009 - $263,500
• November 2008 - $251,800

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.

 A short term prediction of the market is to see sales tapering off as we approach the holiday season. The market is well above panicky mood that we experienced a year ago and we are seeing a much healthier and balanced conditions for both buyers and sellers.

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Last updated on: 2012-05-17 00:22:34

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