Home
sales in the City of Calgary are off to a slow start as buyers
show continuing caution, according to figures released today
by CREB®.
“Overall,
the market is behaving as expected for the winter season,”
says Bob Jablonski, president of CREB®.
The
year-over-year volume of residential sales in the City of
Calgary dropped, but the inventory of available homes declined
even faster in January 2012.
The
City of Calgary residential market recorded 1,078 sales in
January, nearly one per cent below the same month in 2011.
This is in part related to the drop in new listings, which
declined by eight per cent over January 2011, causing
inventory levels to continue to contract over
2011.
“A
lower number of sales is not uncommon for the month of
January,” says Jablonski. “The number of sales is offset by
the number of listings, ultimately pushing the housing market
towards a balanced market territory.”
The
single-family market recorded a one-per-cent drop in sales
over last year levels, while the condominium market recorded a
one-per-cent gain. However, the decline in new listings in the
single-family market was much higher than the condominium
market, with a year-over-year decline of 11 per cent and six
per cent, respectively.
“As
presented in our housing forecast report, a slow start to the
year is anticipated, as consumers continue to be cautiously
optimistic regarding purchasing and/or listing their home,”
says Jablonski.
The
average price of single-family homes in January 2012 was
$438,683, a three-per-cent drop over last year, and over
December 2011. Meanwhile, median prices in the single-family
market remain relatively stable over last month at $395,000,
while posting a one per-cent gain over the previous
year.
“The
price changes are related to the composition of what was sold.
The rise in the median price was likely due to the increase in
the number of homes sold in the $450,000-$549,999 category, as
this category recorded a significant jump in activity in
January. The decline in average price is due to the rise in
sales in the under-$300,000 category, as well as the decline
in the number of homes sold in the upper-price ranges,”
Jablonski explains.
The
condominium market continues to favor the buyer; however, this
market is trending towards balance. The average and median
price of condominiums for the month of January 2012 were
$268,526 and $245,000, respectively. This corresponds to a
seven per-cent decline in average prices and a four per-cent
decline in median prices.
“Last
January, there was a significant jump in sales in both the
$600,000+ price range and the under-$200,000 price range in
condominiums. For January 2012, while sales under $200,000
remain strong, there has been an increase in activity in the
$200,000-$299,999 price range, mostly at the expense of the
condominiums priced above $400,000. This explains the
significant decline in condominium prices,” Jablonski
concludes.
Calgary
Single Family Sales by Price Range YTD Condo Sales by Price
Range YTD
Please
note! CREB®
will change the way it reports statistics with the February 6
release of the first MLS® Home Price Index (HPI). The HPI,
years in development, provides a more accurate picture of the
real estate market and how prices are affected by market
factors. Average and median prices often misrepresent true
price trends because they are affected by factors such as the
change in the mix of homes sold, and the number of sales in
different price categories. The MLS® HPI was developed by the
Canadian Real Estate Association (CREA) in partnership with
local boards from Calgary, Montreal, Toronto and Vancouver.
Compared
to all other Canadian home price measures, the MLS® HPI
identifies turning points sooner, is the most current, and is
the most detailed and accurate gauge for Canadian home
prices
.
