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Calgary Housing Market Stats – May 2013

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 fueled 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
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Calgary Housing Inventory declines. Prices climb. Sales decrease – March 2013

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
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Calgary Housing Recovery Gradual but Promising in July 2011

Market Graph photoResidential sales continue to trend towards recovery in July of 2011 according to the figures released by CREB® (Calgary Real Estate Board) in August. After the first seven months of the year, single family and condominium sales totaled 11,798, a 5% increase over the previous year. While the improvements signal market recovery, overall sales levels remain 17% below the 10-year average for this period.

“The recent rise in average days on market, especially in the single family sector, shows that while properly priced homes are selling quickly, over-priced listings remain on the market for a longer period of time. Improving market conditions may have signaled some sellers to be overly optimistic regarding pricing, resulting in a disconnect between seller and buyer expectations,” says Sano Stante, president of CREB®.

Single family sales for July 2011 were 1,153, with a total of 8,380 sales for the first seven months of 2011, an 8% increase over the same period last year. Meanwhile, year-to-date listings continue to remain lower than last year, resulting in inventories trending lower than last year as well. Overall months of supply remain around four months within a balanced range.

“A good selection of housing inventory, combined with positive economic fundamentals, is encouraging buyers into the market,” says Stante. “Buyers are still quite value conscious, and in the current market are able to take advantage of the range of selection in a stable price environment.”

Condominium sales continued to bounce back this month. July 2011 condominium sales total 453, a 14% rise over last year, while year-to-date sales remain 3% lower than the same period in 2010.

“Excess supply and lower demand have negatively impacted the condominium market over the past year,” says Stante. “Nevertheless, the recent pickup in sales, combined with fewer new listings, has gradually reduced inventory levels of condominiums, lowering the month’s supply of inventory from over six months last year to just
above four months in July 2011.”

The average price of single family homes in July 2011 was $455,849 and the median price $409,000, similar to levels recorded in July of last year. Condominium prices also remained at levels similar to the previous year.
“Interest rates will likely remain low for the remainder of the year. This factor, combined with relatively stable housing prices and wage growth, will help support affordability levels and promote a healthy housing market in Calgary,” Stante concludes.

 Selling Calgary Group     Elke Babiuk
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Employment and Migration Need to Shake off Winter Chill – Dec 2010

Market Graph photo

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 $451,349. 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.

 Selling Calgary Group     Elke Babiuk
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