Upper-end home and entry-level condo sales get a boost
Calgary, September 1, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), sales for upper-end homes are above the pace set a year ago. As of Wednesday August 31, there were 948 single family sales over $700,000 recorded this year, compared to 779 reported for the same period in 2010.
At the same time, sales for condos priced below $200,000 also received a boost, pointing to a growing number of first-time homebuyers taking advantage of affordability and low mortgage rates. There were 834 condo sales below $200,000 this year compared with 596 for the same period in 2010.
“We are seeing a lift in sales at both ends of the market,” says Sano Stante, president of CREB®. “Improving economic conditions coupled with affordability and price stability has given Calgary a boost in buyers for upper-end homes and entry level condos.”
According to figures released today by CREB® (Calgary Real Estate Board), the year to date average price for single family resale homes reached $468,051, a one per cent rise over last year. Condominium prices continue to remain one per cent lower than last year’s figures with an average price of $288,167 after the first eight months. The 2011 year to date median price of single family and condominium homes were a respective $410,000 and $263,000.
“When looking at Canada’s major cities, Calgary is one of the most affordable regions for homeownership in the country,” says Stante. “Buyers are benefiting from improved selection at all price ranges in the market. In fact, nearly half of all single family homes sold year to date were priced below $400,000. Well priced properties seem to be moving in this market.”
The single family market recorded 1,106 sales in the month of August 2011. This is an increase of 28 per cent when compared to August 2010 sales, which were the lowest levels of August sales since 1994. Year to date sales of 9,485 are 10 per cent higher than last year’s figures.
Single family inventory levels reached 4,573 in August, a nine per cent decline over last year’s levels. The recent rise in listings was counteracted by robust sales, keeping absorption levels at four months compared to the six months recorded in August 2010.
As in the single family market, condominium inventories of 1,997 were lower than last year’s levels. The market conditions have changed significantly as inventory levels continue to decline. Recent improvement in sales, combined with lower listings, has resulted in a year over year decline in the months of supply.
Condominium sales amounted to 468 units in August 2011, with a year to date total of 3,885 similar to levels recorded in the first eight months of 2010.
Stante states “With Calgary’s energy sector slated to grow, it is expected to lift the city’s employment, income and in-migration, and in turn help contribute to growth in the resale market. We expect price growth to improve as we approach the end of 2011 and move into 2012.”
Wednesday, September 7, 2011
Tuesday, January 11, 2011
EMPLOYMENT AND MIGRATION NEEDED TO SHAKE OFF WINTER CHILL
Low Interest Rates and Affordability to Support Housing Recovery in 2011
Calgary, January 4, 2011 – Home and condo sales in Calgary and area remained relatively unchanged in December 2010, indicating that a full-fledged recovery in the housing market has yet to take hold, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family home sales in the month of December 2010 were 734, compared with November 2010, when sales were 891—a decline of about 18 per cent. The number of condominium sales for the month of December 2010 was 320. This was up from the 310 condominium transactions recorded in November 2010.
Year-over-year, the number of single family homes sold in December 2010 in the city of Calgary were down 8 per cent. In December 2009, single family home sales totaled 799. Condominium sales saw a decrease of 6 per cent from the same time a year ago. In December 2009, condominium sales were 341.
Looking back in 2010, total single family home sales in the city of Calgary were 12,095, a decline of about 16 per cent from 2009, when total single family sales were 14,440. 2010 marks the lowest number of single family home sales since 1995, when 9,534 single family homes were sold. Total MLS® sales for Calgary and area in 2010 were 21,789, a decline of about 15 per cent from 2009, when total MLS® sales for Calgary and area were 25,719. This is the lowest number of total MLS® sales for Calgary and area since 2000, when total MLS® sales were 20,488.
“Undoubtedly housing markets in Alberta and Calgary underperformed in 2010, as sales recoveries did not materialize
as forecasted. In many ways, re-sales in 2010 showed a repeat of 2008, with a short lived resurgence in the first few months, when confidence returned to the market,” says Diane Scott, president of CREB®.
“Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we are now seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.
The average price of a single family home in the city of Calgary in December 2010 was $441,341, showing a 3 per cent decrease from November 2010, when the average price was $455,460, and a 2 per cent decrease from December 2009, when the average price was $451,341. The average price of a condominium in the city of Calgary in December 2010 was $282,768, showing a 1 per cent decrease from November 2010, when the average price was $284,667 and a 2 per cent decrease over last year, when the average price was $288,640. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.
The median price of a single family home in the city of Calgary for December 2010 was $389,000, showing a 3 per cent decrease from November 2010 when the median price was $399,900. This was a 3 per cent decrease from December 2009, when the median price was $401,000. The median price of a condominium in December 2010 was $258,500, showing a 2 per cent increase from November 2010, when the median price was $253,300, and a 2 per cent decrease from December 2009, when it was $265,000.
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.
“Supply outstripped demand in the second half of 2010, establishing conditions for a buyers’ market. Overall we did see significant improvements in affordability in the Calgary market in 2010—and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points. The median price did indeed decline in 2010, signaling a year-over-year price correction of about 2 per cent for single-family homes, just over 4 per cent for condos and 6 per cent for the outlying towns,” adds Scott.
Single family listings in the city of Calgary added for the month of December 2010 totaled 744, a decrease of 44 per cent from November 2010 when 1,318 new listings were added, and showing a decrease of 8 per cent from December 2009, when 806 new listings came to the market.
Condominium new listings in the city of Calgary added for December 2010 were 369, down 42 per cent from November 2010, when the MLS® saw 632 condo listings coming to the market. This is a decrease of 17 per cent from December 2009, when new condominium listings added were 444.
“There has been some curbing of inventory levels during the last three months of 2010, albeit at a slow pace. Early 2011 will see inventory levels adjust, resulting in a gradual return to a more balanced and sustainable housing market. All in all we believe it will be a slow and gradual warm up in 2011, but it will take some time for the housing market to bring inventory levels down and shake off these winter blues,” says Scott.
Provided by CREB
Calgary, January 4, 2011 – Home and condo sales in Calgary and area remained relatively unchanged in December 2010, indicating that a full-fledged recovery in the housing market has yet to take hold, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family home sales in the month of December 2010 were 734, compared with November 2010, when sales were 891—a decline of about 18 per cent. The number of condominium sales for the month of December 2010 was 320. This was up from the 310 condominium transactions recorded in November 2010.
Year-over-year, the number of single family homes sold in December 2010 in the city of Calgary were down 8 per cent. In December 2009, single family home sales totaled 799. Condominium sales saw a decrease of 6 per cent from the same time a year ago. In December 2009, condominium sales were 341.
Looking back in 2010, total single family home sales in the city of Calgary were 12,095, a decline of about 16 per cent from 2009, when total single family sales were 14,440. 2010 marks the lowest number of single family home sales since 1995, when 9,534 single family homes were sold. Total MLS® sales for Calgary and area in 2010 were 21,789, a decline of about 15 per cent from 2009, when total MLS® sales for Calgary and area were 25,719. This is the lowest number of total MLS® sales for Calgary and area since 2000, when total MLS® sales were 20,488.
“Undoubtedly housing markets in Alberta and Calgary underperformed in 2010, as sales recoveries did not materialize
as forecasted. In many ways, re-sales in 2010 showed a repeat of 2008, with a short lived resurgence in the first few months, when confidence returned to the market,” says Diane Scott, president of CREB®.
“Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we are now seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.
The average price of a single family home in the city of Calgary in December 2010 was $441,341, showing a 3 per cent decrease from November 2010, when the average price was $455,460, and a 2 per cent decrease from December 2009, when the average price was $451,341. The average price of a condominium in the city of Calgary in December 2010 was $282,768, showing a 1 per cent decrease from November 2010, when the average price was $284,667 and a 2 per cent decrease over last year, when the average price was $288,640. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.
The median price of a single family home in the city of Calgary for December 2010 was $389,000, showing a 3 per cent decrease from November 2010 when the median price was $399,900. This was a 3 per cent decrease from December 2009, when the median price was $401,000. The median price of a condominium in December 2010 was $258,500, showing a 2 per cent increase from November 2010, when the median price was $253,300, and a 2 per cent decrease from December 2009, when it was $265,000.
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.
“Supply outstripped demand in the second half of 2010, establishing conditions for a buyers’ market. Overall we did see significant improvements in affordability in the Calgary market in 2010—and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points. The median price did indeed decline in 2010, signaling a year-over-year price correction of about 2 per cent for single-family homes, just over 4 per cent for condos and 6 per cent for the outlying towns,” adds Scott.
Single family listings in the city of Calgary added for the month of December 2010 totaled 744, a decrease of 44 per cent from November 2010 when 1,318 new listings were added, and showing a decrease of 8 per cent from December 2009, when 806 new listings came to the market.
Condominium new listings in the city of Calgary added for December 2010 were 369, down 42 per cent from November 2010, when the MLS® saw 632 condo listings coming to the market. This is a decrease of 17 per cent from December 2009, when new condominium listings added were 444.
“There has been some curbing of inventory levels during the last three months of 2010, albeit at a slow pace. Early 2011 will see inventory levels adjust, resulting in a gradual return to a more balanced and sustainable housing market. All in all we believe it will be a slow and gradual warm up in 2011, but it will take some time for the housing market to bring inventory levels down and shake off these winter blues,” says Scott.
Provided by CREB
Monday, June 14, 2010
Waiting To Buy?
Are you in the situation where you're ready to buy but want to wait and see how the market reacts to all these changes such as mortgage rates increasing, real estate mortgage rule changes, Bank of Canada rates changing?
Well, yes I will say that speculating on how the market will change may save you money, but it can also hurt you as well. In our current market there has been a decrease in sales and an increase in inventory. Which means the supply and demand has shifted and we are edging into a buyers market. How many other people may be thinking the same thing as you, thinking maybe we should wait for a couple of months and see how things go. A lot is the answer. With a combination of summer months ahead and an increasing large inventory, why wait until everyone starts to buy again and the market changes from a buyer to sellers market? Not only will the fall bring buyers aggressively trying to buy a house or condo but mortgage rates may increase as well. Now you've lost out on making bids below list price and are competing against several other buyers. You've also possibly lost out on current great mortgage rates which may increase over the next two or three months and if the rates rise fast enough that erases any sort of gains you've made on price. So does waiting really benefit you? If you're a first time home buyer sometimes the best thing to do is forget about market timing and do whats currently best for you. If you can afford to buy then that's probably the right time to do it.
Well, yes I will say that speculating on how the market will change may save you money, but it can also hurt you as well. In our current market there has been a decrease in sales and an increase in inventory. Which means the supply and demand has shifted and we are edging into a buyers market. How many other people may be thinking the same thing as you, thinking maybe we should wait for a couple of months and see how things go. A lot is the answer. With a combination of summer months ahead and an increasing large inventory, why wait until everyone starts to buy again and the market changes from a buyer to sellers market? Not only will the fall bring buyers aggressively trying to buy a house or condo but mortgage rates may increase as well. Now you've lost out on making bids below list price and are competing against several other buyers. You've also possibly lost out on current great mortgage rates which may increase over the next two or three months and if the rates rise fast enough that erases any sort of gains you've made on price. So does waiting really benefit you? If you're a first time home buyer sometimes the best thing to do is forget about market timing and do whats currently best for you. If you can afford to buy then that's probably the right time to do it.
Tuesday, March 30, 2010
Big Banks Start Increase in Mortgage Rates
Monday saw an announcement from 3 of Canada’s big banks to suddenly raise their mortgage rates by up to .6%. Royal Bank of Canada, TD Canada, and Laurentian Bank made changes to their closed mortgages of three, four and five year terms that came in affect as of today. This will see an increase of about 1.5% within a year to finance a home. This was bound to happen sooner or later as the rates were already very low. This will become a trend as the other banks will follow suit to these sudden changes. Variable rates did not change but everyone is predicting that they will increase sometime this year which will be influenced by the Bank of Canada. The low lending rate was suppose to help stimulate the economy but we have seen many indications that the economy is steaming along including the real estate market and in order to cope with inflation these rates are bound to go up. The only thing that confuses me about this sudden change in mortgage rates is that just last week we saw a slight drop in the rates which is nothing really to spend your time thinking about. One thing I will anticipate in the next few months, for those that locked in a rate hold and the combination of spring and an increase in consumer confidence, it’s going to be a busy real estate market.
Monday, February 8, 2010
Improved But Balanced
We are now just over a month into the New Year and we have already seen signs of how the year is going to turn out. With mortgage rates still low, houses are affordable and we are seeing a lot of sales to prove that people are taking advantage of the low mortgage rates. This year for the month of January single family home sales was up 39% and the condominium market was up 67% from January 2009. A good sign that the market and the economy has improved. We may see this improvement, but do not take this the wrong way and think that prices and the real estate market will see another boom. The market has just corrected itself and we may just see a balanced and steady market over the year. Prices have adjusted over the year and we find ourselves with an inventory of houses that is normal for this time of year. For a lot of people that are looking to buy a new home or may be first time home buyers, the decision to rent or buy is a question that may change one’s mind when looking at the low mortgage rate. It will definitely bring new home buyers into the market in 2010.
Tuesday, November 3, 2009
Road to Recovery
Calgary has seen a drastic change in consumer confidence both on the buying side and the selling side. Once again we saw a real estate market that continued to rebound in the month of October. Sales were up more than 50% from October 2008. We’re seeing increases in single family homes and in condominiums; a difference from last month where I noted that the condo market still wasn’t on the same pace as single family homes. However, I have also noticed a low inventory of homes for sale on the market. An increase of potential buyers with few houses to buy has created competitive offers/multiple offers for select properties that become new listings on the market. There is a huge demand out there for houses of a certain criteria, if you price it right you will sell it.
Monday, October 19, 2009
Goodbye Summer, Welcome Falll
The Calgary real estate market continues to be optimistic with consumer confidence improving and demand starting to once grow again. Not only have we seen an increase in average price of homes we have seen a drop in inventory as well. We are seeing about a 35% decrease in listings this time of year compared to last year. Not only are we seeing this consumer confidence in Calgary, we are noticing it across the nation. At this point prices are stable and it is no longer a buyer OR seller’s market. Million dollar homes continue to sell at a steady rate and the condo market seems to be improving in some areas. Hopefully, the fall weather stays mild and this trend continues into late October/beginning of November.
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