Recovery Continues in the Calgary Real Estate Market

Posted by Joe Samson & Associates on Tuesday, January 5th, 2010 at 6:27pm.

Statistics released by the Calgary Real Estate Board indicates that the Calgary housing market continues to show signs of sustained recovery.

Sales of single family homes in Calgary have increased by a 78 per cent over the same time a year ago in December. Condominium transactions have also been keeping up with an increase of 66 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 - “What a difference a year makes. Undoubtedly the recovery in Calgary’s housing market came sooner than expected this past year. Pent up demand by first time buyers, record low mortgage rates and improved affordability have helped bolster the Calgary market in 2009.”

Looking at the numbers in more detail, there were 799 single family homes sold in Calgary last month. It is a 27% decrease when compared to the month of November when 1,095 single family homes exchanged hands in the Calgary real estate market. In December of 2009, 341 condominiums have been sold vs. 504 units in November or a 32% month to month decrease.This month to month decrease is primarily due to the holidays as some home sellers now may prefer to delay their transaction until the spring.

“The same time last year the cards were stacked in favour of the buyer.  But this month sales once again show Calgary has returned to a balanced market,” says Wegerich.  “While our sales did taper off slightly in December, as expected for this time of year, home buying activity in Calgary indicates we are in a sustained recovery.”

It was somewhat difficult to predict which way the market is heading because month-to-month number of homes sales have been idling or decreasing for several months. The most important question for 2010 is if there are going to be enough buyers left? Are they going to stick around when interest rates starting to creep up after the summer? An even more curious question would be to ask is: what happened to those sellers who took their homes off the market in 2009… are they going to return to the market again?

Average Price of a Single family home in Calgary
• December 2009 - $451,349 (an increase of 8% compared to a year ago)
• November 2009 - $464,444
• December 2008 - $417,398

Average Price of a Condominium in Calgary
• December 2009 - $288,640 (an increase of 5% compared to a year ago)
• November 2009 - $294,264
• December 2008 - $274,919

Single family home listings in Calgary
• December 2009 - 806 (a decrease of 4% compared to a year ago)
• November 2009 – 1,365
• December 2008 - 836

Condominium listings in Calgary
• December 2009 - 444 (an increase of 3% compared to a year ago)
• November 2009 - 705
• December 2008 – 431

Median Price of a Single family home in Calgary
• December 2009 - $401,000 (an increase of 6% compared to a year ago)
• November 2009 - $408,000
• December 2008 - $380,000

Median Price of a Condominium in Calgary
• December 2009 - $265,000 (an increase of 4% compared to a year ago)
• November 2009 - $264,000
• December 2008 - $254,000

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.

Inventory levels are modestly below last year’s figures, yet it offers a good enough selection to maintain a balanced market and to continue with the stabilization or recovery of the real estate market in Calgary. Calgary’s real estate absorption rate remains between 3-4 months, which could be described as a very even handed market both for buyers and sellers.

Interest rates and employment data will play a major factor in how the housing recovery will shape up in 2010. The outlook for interest rates is to start going up towards the second half of 2010 – there is a slight chance that this may scare some buyers from taking action, however in the long run, it will benefit the market by creating a stable market place.

 

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

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