The
summer cool down in Calgary’s housing market continued in the
month of July, according to figures released today by the
Calgary Real Estate Board (CREB®).
The
number of single family homes sold in July 2010 in the city of
Calgary was down 42 per cent from the same time a year ago,
and condominium sales saw a decrease of 44 per cent from the
same time a year ago.
July
2010 saw 915 single family homes sold in the city of Calgary.
This is a decrease of 14 per cent from 1,061 sales in June
2010. In July 2009, single family home sales totaled 1,585.
The number of condominium sales for the month of July 2010 was
396.
This was a decrease of 11 per cent from the 445 condominium
transactions recorded in June 2010. In July 2009, condominium
sales were 702.
“Calgary’s
housing market is cooling off after its record-setting pace in
the post-recession period. This slow-down is not all that
surprising in the face of tighter mortgage regulations and
rising interest rates. The post-recession rally we saw in the
Summer
of 2009 was unique and that pace couldn’t be sustained,” says
Sano Stante, CREB® President-Elect.
“The
sense of urgency seen last summer, fall and winter in the
lead-up to tighter mortgage-lending measures has diminished,”
says Stante. “Rising mortgage rates and increased inventories
will be the primary head-wind facing Calgary’s housing
market,
but improving job prospects will offer some tail winds in the
latter half of 2010 and into 2011.”
The
average price of a single family home in the city of Calgary
in July 2010 was $464,655, showing a four per cent decrease
from June 2010, when the average
price
was $481,964, and showing an increase of six per cent from
July 2009, when the average price was $436,782. The average
price of a condominium in the city of Calgary was $291,168,
showing no significant change from June 2010, when the average
price was $292,238 and a two per cent increase over last year,
when the average price was $285,032. 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.
“We
are seeing relative stability in our average and median prices
for the Calgary market,” says Stante. “A gradual return to
moderate interest rates will not trigger any kind of steep
decline in prices in our housing market. Prices may soften in
select markets where inventory has bulked up, but for the most
part they will remain relatively sticky as the economy
improves.”
“Nonetheless
with the combination of historically low interest rates and a
large inventory of homes, there are some great buys out
there—particularly in areas where comparable stock is ample
such as the condominium and multi-family market. This presents
a great opportunity to get into the market or to trade up,”
adds Stante.
The
median price of a single family home in the city of Calgary
for July 2010 was $400,000, showing a five per cent decrease
from June 2010, when the median
price
was $418,900, and a three per cent increase from July 2009,
when the median price was $390,000.
The
median price of a condominium in July 2010 was $268,000,
showing a one per cent decrease from June 2010, when the
median was $269,900. That’s up two per cent from July 2009,
when the median price was $263,000.
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.
There was a slowdown in the number of Calgarians putting homes
up for sale in the month of July.
Single
family listings in the city of Calgary added for the month of
July totaled 1,942, a decrease of 29 per cent from June 2010
when 2,733 new listings were added, and showing a decrease of
seven per cent from July 2009, when 2,089 new listings came to
the market.
Condominium
new listings in the city of Calgary added for July 2010 were
890, down 18 per cent from June 2010, when the MLS® saw 1,084
condo listings coming to the market. This is a decrease of
three per cent from July 2009, when new condominium
listings
added were 918.
“Indeed
Alberta and Calgary’s economic recovery is lagging behind the
rest of the country right now. But on the bright side we see
this trend reversing itself as we move into 2011. We expect
Alberta to lead in economic growth and recovery—outperforming
much of the country in 2011,” says
Stante.
CREB®
is a professional body of 5,543 licensed brokers and
registered associates, representing 247 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.
