Calgary Housing Market Stats – May 2013

By on June 7, 2013 in Calgary Real Estate

Calgary Home Sales Hold Momentum

Market Graph photo

Prices rise as resale market continues to favour sellers

Calgary, June 3, 2013 – City of Calgary residential monthly sales improved over the previous year, mostly driven by increased demand in the condominium market.

Sales activity in all categories totalled 2,544 units for the month, a seven per cent increase over May 2012 figures.

“We’re back to normal levels of activity,” said Becky Walters, president of CREB®’s board of directors.  “Last spring was the first time since the recession that we saw more typical levels of sales, and this spring sales recorded further growth.”

Sales growth in the city is exceeding expectations, although the rate of increase has slowed from 2012’s double digits.

There is downward pressure on inventory levels, because there are fewer than normal new listings at a time when sales volume is increasing. Inventory levels are 17 per cent lower than levels recorded in 2012.  These two factors are creating market conditions that favour the seller, causing stronger than expected price growth.

“Buyers need to have financing in place so they can act quickly when they see the right property,” Walters said.  She added that buyers also need to have a clear sense of what they can afford and what they are prepared to pay before entering negotiations.

But she noted that market conditions today are much different for sellers than the last time our market favoured them.  While properties are selling at a faster pace and at prices closer to list, buyers have a range of choice in various segments, communities and price ranges.  Furthermore, consumers today are more cautious than a few years ago.

Single-family sales totalled 1,766 units in May, three per cent higher than levels recorded in 2012.  While sales volumes are consistent with long-term averages, sales growth is hampered by the decline in new listings, especially in the lower price ranges.

The unadjusted benchmark single-family price totalled $456,900 in May, a seven per cent increase over 2012 and a one per cent increase over the previous month.

After the first five months of the year, condominium apartment sales totalled 1,672 units, a 10 per cent increase over the same time in the previous year.

“Tighter mortgage rules impacted what buyers could afford to purchase in the Calgary market,” said Ann-Marie Lurie, CREB®’s chief economist.  “And while the majority of buyers are purchasing single-family homes, the attractive price point has improved demand for condominiums.”

With less supply relative to demand in resale, condominium prices are on a path to recovery.  In May, the benchmark price for condominium apartments totalled $263,600, a year-over-year increase of seven per cent.  Condominium townhomes reached a benchmark price of $292,100, a five per cent increase over the previous year.

“Improvements in Calgary’s resale housing sector are being fuelled by the combination of employment gains, migration growth and tight rental market conditions,” Lurie said.  “However, resale price growths will likely moderate, as competition in the new-home sector and sluggish economic growth expectations will weigh on the housing market.”

Our DropBox: Calgary Housing Market Stats – May 2013 – Community Stats for Single Family, Condominium, and Town and Country.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013
  2. Calgary’s Resale Condo Market Shows Signs of Life – Feb 2013
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Home Staging Tips – Sell your Home Faster for More Money

By on May 29, 2013 in Calgary Real Estate, Feng Shui-Staging

Home Staging photoA Real Estate Investment – possible 5% return in 23 days!

If you’re wondering what Home Staging is all about, please read our blog post on why you should stage your Calgary home before Listing it on the MLS® System.  In summary, research has shown that staging will make your home more desirable to potential buyers.  You will sell your home faster and may avoid a series of painful price reductions.

Tips for Staging Your Home

There are as many ways to stage a home as there are homes.  Some of the examples given below are for illustration purposes; your imagination can take it from there.

1.  Start Outside:  You know about the “drive-by” – you’ve probably done it yourself.  You drive by a home for sale to decide whether you want to see the inside or not.  Draw potential buyers in with real curb appeal.

  • Keep the lawn mowed and garden areas weeded.
  • Make sure the exterior of the home looks in good condition.  Fix any rotting boards or fading paint.
  • Power-wash the outside of the home, sidewalks, and patios.
  • If the weather allows, add potted plants or flowers in the garden beds and accent your front doorway on both sides with large potted plants.

2.  Keep It Clean:  It may seem like a small thing, but buyers are extremely discouraged when they see a dirty house.  Pretend your boss or your in-laws are coming to stay for a few days.  The house needs to be that clean on a consistent basis. Buyers will also look in your kitchen and bathroom cabinets so clean and declutter them.

3.  Depersonalize and Declutter:  It’s true that you love the family photos that line both sides of the stairway and the awards in your home office, but buyers won’t. Take yourself out of the picture.  It’s easier for buyers to imagine themselves in your home. If you love to cook, you find the numerous small appliances on the kitchen counters very handy, but buyers will see your kitchen as smaller and closed-in.

How can you possibly get rid of all the personalized clutter?  You don’t have to.  You are planning to move anyway, so take this opportunity to start packing!  Until the house is sold, you may need to use a whisk rather than your blender, but you’ll be in your new kitchen a lot sooner!

4.  Bring Out the Best in Each Room:  This may require removing furniture, rearranging furniture, or replacing furniture that is worn out.  If you can’t afford to replace that worn-out couch, you can rent furniture for the time period when your home is listed.

  • If the fireplace is the focal point of the living room, make sure the furniture doesn’t obstruct the view and provide attractive accents on either side.
  • If your king-size bed and large furniture make the bedroom look small, put some of the furniture in another room, in storage, or in your garage.
  • If the hardwood or the carpet in the dining room has seen better days, rejuvenate by refinishing or replacing. Flooring and Painting bring the biggest returns for your investment.
  • If a room is dark, make it more attractive and appealing with a lighter more neutral paint color.  Dark rooms make a home appear smaller.
  • Replace the chandelier in the dining room if it’s dated. Your eating areas are some of the most important features to highlight in a home when selling.
  • Make sure there is sufficient light in rooms by opening blinds and drapes.
  • Breath new life into a room by investing in some Artwork.
  • If possible, replace dated lighting fixtures, door hardware, light switches and outlets.

5.  Freshen with a New Paint Job:  Nothing brightens up the rooms of a home faster than fresh paint.  Take this opportunity to depersonalize your color choices.  Stick to neutral colors to help buyers envision their own decorating taste in the house.

  • Your kids love their bright blue and red rooms, but buyers will spend their time worrying about how much trouble it will be to repaint while they’re moving in.
  • You’re sure your dining room doesn’t need paint?  The walls are a nice eggshell color and that one red wall just makes the room look more cozy.  Or does it? It may look that way to you, but don’t assume that potential buyers for your home will share your color tastes.

6.  Make Repairs as Needed:  Oil squeaky doors.  Replace that light switch cover in the kitchen that you’ve had on your to do list for months.  Reattach the molding or baseboards you were going to replace but never did.

When you stage your home yourself, the time investment will pay large dividends in a very short time-frame. Is there another investment that could potentially net you 5% more in as little as 23 days on the market? Look through the list again and add up the items that relate to your home.  What is the most it could cost? The money you spend on staging your Calgary home and/or doing minor repairs and painting will not be more than the price reductions you might end up making if you don’t!

7. Ask your REALTOR® for Assistance:  Experienced Real Estate Professionals know what buyers are looking for and can advise you on what the highest return for your investment dollar is. Give us a call or send us an E-mail!

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Home Staging: Is It Your Best Choice?
  2. Feng Shui Tips for Kitchens
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Home Staging: Is It Your Best Choice?

By on May 15, 2013 in Feng Shui-Staging, Real Estate News

Calgary Home Staging Photo

Selling your home fast for the highest price possible.  Would home staging let you accomplish those goals?

Why Stage Your Home?

There are many reasons to stage your home.  One of the most important things staging accomplishes is that it shifts the focus away from the personal belongings that are in the house to the most positive features of the home itself.

Imagine a Calgary home for sale that has a pool table in the living room.  The family currently living in the home use the table a lot.  Overlooked is the fact that there is limited seating in the living room because playing pool is an activity the family uses to bring them all together.

When that home goes on the market, and a potential buyer walks into the living room, what would you imagine would be their first reaction?  Could it be something like “How would our furniture fit in this living room?”

Even without a pool table, it’s often very difficult for many people to look beyond the personal contents of a home to see the potential for moving their family into it.  When you stage your home, one of the goals is to “de-personalize” your living spaces to give a potential buyer the opportunity to think about how they will use the home.

Home Staging:  The Numbers Prove It Is Your Best Choice

According to the International Association of Home Staging Professionals and Stagedhomes.com, on average, 95% of staged homes sell in 23 days or less. Statistics also show that home staging can increase a property’s value by 5-11% (RESA – Real Estate Staging Association), and that a home’s price is typically reduced by 1% for every month the home remains on the market (Zillow).  Using round numbers, let’s say a home was listed at $500,000 and took 4 months to sell.  The typical price reduction might be $20,000 or more for an unstaged home and a longer selling period versus a possible 5% increase in property value for a staged home which sells much faster. Moreover, the cost of maintaining an unstaged home on the market for longer may also be considerable if one factors in property taxes, mortgage payments, condo fees, etc.

Then you need to account for the fact that the longer the house is on the market, the harder it is to negotiate a selling price closer to listed price as buyers and their Agents will want to negotiate a much lower price so will often start lower than they normally would have for a home that was just newly listed. All this boils down to one fact: when a home doesn’t appear welcoming to buyers, it often sits on the market and goes through multiple price reductions.

As a seller, you have many choices available to maximize selling price, minimize selling time, and experience a more positive selling experience before you list your home so it’s important to consult with an experienced REALTOR® to explore the options available to you.  If you want to stage your home before it goes on the market to maximize selling price, your REALTOR® can recommend a home-stager for a complimentary consult. Some home-staging companies also have contractors available if your home needs some repairs or a quick paint job so that’s a huge benefit if you are too busy to coordinate all of this yourself.

Once you understand how beneficial staging is when you’re selling a home, you’ll find that home staging doesn’t have to be time-consuming or costly.

Look for the second blog next week about home staging – learn how to do your own home staging to maximize selling price. Our Feng Shui articles will also give you helpful tips in preparing your home for sale.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Feng Shui Tips for Kitchens
  2. Yin and Yang: The Key to a Balanced Home
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Calgary Home Prices Reach New High – April 2013

By on May 7, 2013 in Calgary Real Estate

Market Graph photo

Sellers’ market conditions push up prices across all categories

Calgary, May 1, 2013 –The benchmark price of single- family homes reached a new high of $452,900 in April, as market conditions that favour the seller finally drove prices above the unadjusted peak in 2007.

“It’s really encouraging to see that the Calgary market remains strong,” said Becky Walters, CREB® President. “It’s reassuring to both buyers and sellers to see that this area is outperforming many parts of the country.”

Single-family sales totaled 1,611 in April, nearly two per cent higher than the previous year, but year-to-date figures are similar to levels recorded in 2012. Sales growth in the first part of the year was stifled by a shortage of new listings and inventory. However, the year-over-year increase in new listings of 5.4 per cent helped support sales growth in April.

“Declining selection in the lower price range and market conditions that favour the seller in the overall single-family market has resulted in a boost in demand in the condominium market and surrounding towns,” said CREB® Chief Economist Ann-Marie Lurie. “Inventory levels declined across all of these segments. However, surrounding towns remain in balanced territory, as they experienced the effect of previously elevated inventory levels.”

After the first four months of the year, condominium apartment sales totalled 1,259 units, an 11 per cent increase over the previous year. Sales growth outpaced the number of new listings, causing inventory levels to decline to 871 units. This pushed the market into sellers’ territory.

Tighter market conditions supported a year-over-year condo apartment benchmark price growth of 7.35 per cent. Unlike the single-family sector, however, condo apartment prices remain well below unadjusted highs recorded in 2007.

Walters said a move to a sellers’ market will encourage those who have been waiting for price recovery to put their homes on the market. This will offer more choices for buyers.

“New listings have been declining for the last few years as prices had not recovered,” she said. “People who did not have to sell chose to hold off. Price improvement can encourage new listings, easing some of the tension on the supply levels.”

There were 3,476 new residential listings in the city, a seven per cent increase relative to 2012. Sales activity also increased to a total of 2,381. Residential year-to-date sales improved by nearly four per cent compared to the same time in 2012. Meanwhile, citywide benchmark prices totaled $406,000 a seven per cent rise over the previous year.

“Calgary’s housing market continues to defy national softening trends as gains in the employment sector, migrant growth, rising wages and low interest rates are translating into growing demand for housing,” said Lurie.

For the first time since 2007, conditions favour the seller. However, economic conditions today are vastly different, making it unlikely that Calgary will see a repeat of those conditions, said Lurie. Our economy faces some challenges this year, and consumers still have options in both the new home market and surrounding towns, all factors that will temper price growth.

  1. January – Calgary Real Estate Market Stats – 2013
  2. February – Calgary Real Estate Market Stats – 2013
  3. March – Calgary Real Estate Market Stats – 2013
  4. April – Calgary Real Estate Market Stats – 2013
  5. 10-year Market Stats (2004-2013)
 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013
  2. Calgary’s Resale Condo Market Shows Signs of Life – Feb 2013
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Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013

By on April 24, 2013 in Calgary Real Estate

Tightened Housing Supply Curbs Sales Volume

Market Graph photo

First Quarter sales improve in condo market, and decline in single family sector

Calgary, April 2, 2013 – The inventory of active homes for sale in Calgary are the lowest March levels in more than five years. The decline in new listings hampered resale sales growth, which declined by more than two per cent in March compared to March 2012.

New listings in March are five per cent lower than levels recorded in 2012, and five per cent lower after the first quarter. The overall active listings stand at just 4,006 units, up from February’s levels but well below the number available one year ago.

“Less resale product available to consumers is ultimately limiting sales growth,” said CREB® President Becky Walters. “In addition, resale homes are selling in less time and with continued upward pressure on prices.”

Walters said buyers have grown accustomed to a market when they have more time to make decisions because there was ample supply. But, as market conditions have tightened, if they are serious about purchasing a resale home, they can no longer significantly delay that decision, she said.

“While market conditions are a far cry from activity witnessed throughout the frenzy in 2006 and 2007, there has been a noticeable change over what became the norm over the past few years.” Walters said.

Single-family, year-over-year sales growth declined by six per cent in March, a reflection of declining supply. Active inventory totaled 2,713 units, 22 per cent lower than levels recorded in 2012, and the lowest March inventory level recorded since 2007. The market balance continues to trend into seller’s territory in this segment causing a year-over-year price increase of nearly nine per cent, for a total of $446,500 in March 2013.

“Tighter rental conditions and continued employment growth has supported housing demand growth,” said Ann-Marie Laurie, CREB®’s chief economist. “However, for those looking for more affordable single family home products, their choices continue to narrow.”

She said new single-family listings under $500,000 are declining at double-digit rates, driving consumers at that price point to either surrounding towns, condominiums or the new home market.

The condominium townhouse market is the only category to record a year-over-year rise in sales activity for the month. This is in part because the level of new listings improved in March 2013 relative to March 2012. Condominium year-over-year apartment sales declined by nearly three per cent in March.

However, after the first quarter, sales activity totaled 830 units a 6 per cent increase over the previous year. Condominium townhouse sales totaled 652 units at the end of the first quarter, a 15 per cent increase over the previous year.

“The condominium apartment market remains in balance,” said Lurie. “While it has moved to the lower end of the spectrum, it remains better supplied then the single family market and the majority of product available is in an affordable price range.”

The benchmark apartment price totaled $257,700 in March, a six per cent increase over the previous year. Meanwhile, the condominium townhouse benchmark price experienced a year-over-year increase of 4 per cent, to $286,800.

“Despite tighter market conditions, it is unlikely that we will have another significant run-up in prices,” said Lurie. “Outside of easing economic factors expected this year, consumers have options in the total housing market.” Said Lurie.

CREB® Calgary Regional Housing Market Statistics – Calgary & area – March 2013

Calgary Housing Inventory & Sales - 2007-2013 (March) graph

Calgary Housing Inventory & Sales – 2007-2013 (March)

Calgary Home Prices March 2008 - March 2013 Graph

Calgary Home Prices March 2008 – March 2013

 

Announcement - Selling Calgary GroupPlease Note: We switched between several platforms with our blog and market stats over the last couple of years so not all housing stats are here for 2012 or 2011. Back issues of our newsletter with monthly market stats are in the right column rss feed “Market Stats & Newsletter”. For more detailed real estate market information from the Calgary Real Estate Board, please see our shared dropbox folder for 2012-2013 Calgary and area Market Stats. Files are downloadable. Monthly District Market Stats for 2013 for Calgary, and Rural Stats for Towns and acreages are downloadable as follows:

  1. January – Calgary Real Estate Market Stats – 2013
  2. February – Calgary Real Estate Market Stats – 2013
  3. March – Calgary Real Estate Market Stats – 2013

We also have the above files for 2013 bundled in our Bitly account and we will be archiving all the monthly stats there.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Home Prices Reach New High – April 2013
  2. Calgary’s Resale Condo Market Shows Signs of Life – Feb 2013
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Calgary’s Resale Condo Market Shows Signs of Life – Feb 2013

By on March 3, 2013 in Calgary Real Estate

Market Graph photoDouble digit year-over-year condominium sales growth

Calgary, March 1, 2013 –Total residential sales for the month of February 2013 totaled 1,711 units, a one per cent decline over the previous year. Condominium sales have made significant gains increasing by 13 per cent relative to February 2012.

Year-over-year single family sales growth totaled 1,209 units in the month of February, as supply levels continued to decline, limiting choice for those in the market.
“When new product comes onto the market, buyers are not delaying their purchasing decisions as the majority of homes are selling in less time at prices closer to their list price,” said CREB® President Becky Walters. “The tighter market conditions have supported price growth, however despite the current gains, single family home prices remain below the unadjusted benchmark high of $451,000.”

The unadjusted single family benchmark price for February 2013 was $442,500, a 1.3 per cent increase over the previous month and nine per cent higher than levels recorded in February 2012.

“With less selection in the single family market, particularly at the lower price ranges, more consumers are turning to the condominium market,” said Ann-Marie Lurie, CREB® Chief Economist. “Throughout the downturn there were more single family homes priced under $400,000. However, over the past few years the number of new single family listings in this range represents a declining share of the market, leaving consumers looking for more affordable products.”

Improved sales activity combined with reductions in total inventory levels have provided room for growth in condominium prices. The condominium apartment benchmark price totaled $252,900 in February 2013, a six per cent increase over the previous year. Meanwhile, townhouse condominium prices recorded a year-over-year increase of 4.7 per cent for a total of $283,200 in February.

“During the boom years, Calgary experienced significant growth in the employment sector and shortages in housing supply, ultimately creating frenzy amongst consumers driving up prices at unsustainable rates,” said Lurie. “Condominium prices have since corrected, and while the current price gains are a sign of recovery, the unadjusted condominium apartment and townhome benchmark prices still remain 14 per cent below the peak levels.”

While the average price reflects record levels in Calgary, those numbers can be misleading,” said Walters. “Last year there were more home sales in the higher-end segment of the Calgary market compared to 2007, and this trend has continued into 2013, causing the average price to rise above peak levels.”

CREB® focuses on the benchmark price which is based on the attributes of the home including repeat sales. This pricing methodology provides a better indication of how prices for similar properties have trended over time.
“While our economy does not reflect growth recorded pre-recession and continues to be plagued by short term risk, consumers are feeling confident about the long term prospects of this city and continue to support growth in our housing sector.” Said Lurie.

For more detailed real estate market information from the Calgary Real Estate Board, please see our shared dropbox folder for 2012-2013 or check our Bitly Market Stats Bundle for 2013.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013
  2. Calgary’s Resale Housing Market Continues to Improve – Jan 2013
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NEW Specialty Real Estate Pages for Home Search

By on February 14, 2013 in Announcements, Calgary Real Estate

Announcement - Selling Calgary GroupWe are truly excited about launching some specialty Real Estate pages on www.SellingCalgary.pro and invite you to visit the Rich Resources and MLS® Listings available:

Our Calgary Real Estate News-Market Reports are now found in our Selling Calgary Group Real Estate Newsletter (RSS Feed in side column).

Our shared dropbox folder contains the files for the combined monthly and quarterly Real Estate Housing Stats for Calgary-area Rural, Calgary Residential, Calgary Condos, and Satellite towns.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Real Estate Market Reports
  2. Calary Real Estate Market Stats – September 2011
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Calgary’s Resale Housing Market Continues to Improve – Jan 2013

By on February 1, 2013 in Calgary Real Estate

January sales and prices rise over previous year

Calgary, February 1, 2013 – Residential real estate sales in the city of Calgary started the year on a positive note, increasing by 15 per cent over the same month in 2012.

Total sales were 1,230 units, a significant increase over the 1,068 units last year. But sales remain well below January levels recorded through the peak  years  of 2003 – 2008.

“While activity is typically slower in the winter months, recent improvements in single family new
listings helped support improved sales in that market,” said  CREB® President Becky Walters.
“Overall indicators put the market in balanced conditions.”

Single family sales totaled 879  units in January, a 15 per cent increase over January 2012 levels.   New  listings remained just above levels recorded at the  same  time in 2012, for a total of1,737.  The slight improvement in listings helped support sales growth, although inventory levels remain down by  double- digits.

“Inventory levels have  improved relative to December, as is the  seasonal trend,” said  Walters. The lower level of inventories can pose a challenge for buyers, as they will have to make their buying decision quicker than buyers have done over the past four years.
“However, this is by no means a signal that the seller has the advantage,” said Walters. “Consumers are fairly price-sensitive and look for value in their purchase.” Unadjusted single family benchmark prices are showing improvement over January 2012, increasing by nine per cent. They are relatively unchanged over figures reported in December 2012.

“Prices have improved in the Calgary market, but as always it is important to keep some perspective on this,” said Ann-Marie Lurie, CREB® Chief Economist. “While January’s year-over-year increase seems significant, price recovery occurred in the spring months of 2012 under tighter market conditions and home prices leveled off for the remainder of the year.”

Apartment and townhouse condominiums recorded respective sales of 204 and 147 units in January 2013. Although sales increased, the number of new listings declined. “With excess supply relative to demand persisting for several years, the condominium apartment market has been slow to recover,” said Lurie. “Sales growth amidst declining listings has supported recent improvements in condominium apartment prices, something that has already been occurring in the single family sector.”

The unadjusted benchmark apartment price totaled $251,300 in January, a 7.5 per cent increase over the 2012, and a one per cent increase over December figures. Meanwhile, the condominium townhouse benchmark price was $283,400 in January, 4.9 per cent higher than January 2012, and slightly lower than levels recorded in December.
“There is cautious optimism over the economic situation in Calgary,” said Lurie.

While energy companies face market access challenges, several options are being considered to reach more diverse markets, she said. “If some of these options are economically viable and pass regulatory approval, this would support economic growth moving forward.”

Monthly District Market Stats for 2013 for Calgary, and Rural Stats for Towns and acreages are downloadable as follows:

  1. January – Calgary Real Estate Market Stats – 2013
  2. February – Calgary Real Estate Market Stats – 2013
  3. March – Calgary Real Estate Market Stats – 2013

We also have the above files for 2013 bundled in our Bitly account and we will be archiving all the monthly stats.

 Selling Calgary Group     Elke Babiuk

Related posts:

  1. Calgary Home Prices Reach New High – April 2013
  2. Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013
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