Calgary Housing Market to Simmer, not Sizzle
Economic optimism, improved choice and price stability contribute to a balanced housing market
This was a CREB press release put out today, I thought I would forward it on in case anyone had any questions about the Calgary Real Estate Market.
Calgary, May 3, 2010 – Calgary’s housing market continues at a healthy and balanced pace, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family homes sold in April 2010 in the city of Calgary was up 5 per cent from the same time a year ago, while condominium sales saw an increase of 10 per cent from the same time a year ago.
April 2010 saw 1,352 single family homes sold in the city of Calgary. This is a decrease of 3 per cent from 1,396 sales in March 2010. In April 2009, single family home sales totaled 1,290. The number of condominium sales for the month of April 2010 was 639. This was an increase of 5 per cent from the 609 condominium transactions recorded in March 2010. In April 2009, condominium sales were 579.
“Continued economic optimism, improved choice and price stability are all contributing to a healthy and balanced housing market in Calgary,” says Diane Scott, president of CREB®. “Calgary’s housing market is set to simmer, not sizzle in 2010. We can be grateful that we are not facing any real danger of a housing bubble here in our market.”
“There has been some talk about a bubble in some parts of Canada but the rapid price increases seen in Vancouver, Victoria and southern Ontario have not been seen in Calgary,” Scott acknowledges. “Single family house prices are coming back nicely compared to 2009,” says Scott.
The average price of a single family home in the city of Calgary in April 2010 was $460,378, showing an decrease of 2 per cent from March 2010, when the average price was $471,269, and showing an increase of 8 per cent from April 2009, when the average price was $426,311. The average price of a condominium in the city of Calgary was $289,588, showing a 2 per cent decrease from March 2010, when the average price was $296,660 and a 4 per cent increase over last year, when the average price was $277,953. 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 April 2010 was $417,000, showing a 1 per cent decrease from March 2010, when the median price was $423,000, and a 10 per cent increase from April 2009, when the median price was $380,000. The median price of a condominium in April 2010 was $267,500, showing a 3 per cent decrease from March 2010, when the median was $275,000. That’s up 7 per cent from April 2009, when the median price was $251,000.
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.
“Our average price is holding relatively steady,” says Scott. “The pace of price increase has been tempered by the rate of new listings that has been growing faster than sales. Sales levels are still well below the high demand from 2004-2008, mainly because we are still not seeing high job growth and unemployment has remained high.”
Single family listings in the city of Calgary added for the month of April totaled 3,082, an increase of 3 per cent from March 2010 when 2,988 new listings were added, and showing an increase of 53 per cent from April 2009, when 2,010 new listings came to the market. Condominium new listings in the city of Calgary added for April 2010 were 1,335, down 3 per cent from March 2010, when the MLS® saw 1,376 condo listings coming to the market. This is an increase of 38 per cent from April 2009, when new condominium listings added were 967.
“Calgary didn’t see the impacts of the very low interest rates the way other areas of Canada did,” says Scott. “Calgarians are also not rushing out to beat the rate increases as they are seeing less risk of rising prices squeezing them out of the market.”
“In fact financially, Calgarians are in a very healthy position. Just over 37 per cent of our median pre-tax household income was needed to service the mortgage on a typical detached bungalow in Calgary—that’s below the national average,” says Scott.
CREB® is a professional body of 5,337 licensed brokers and registered associates, representing 244 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR® members.
REALTORS® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the board’s website at www.creb.com.