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Double 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

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