REAL ESTATE MARKET COOLS AS 2008 COMES TO A CLOSE

Calgary Real Estate News

REAL ESTATE MARKET COOLS AS 2008 COMES TO A CLOSE

January 5, 2009

MLS® sales activity slowed considerably at the end of 2008, according to fi gures released by the Calgary Real Estate Board (CREB®).

Single family Calgary metro sales for the month of December totaled 449, showing a decrease of 47 per cent from the 846 sales in December 2007 and showing a decrease of 33 per cent from November's sales of 670. The year end number of Calgary metro single family sales was 13,455, showing a decrease of 27 per cent from the 18,438 sales recorded in 2007. The number of Condominium sales for the month of December was 205, a decrease of 48 per cent from the 393 condominium sales recorded in December 2007 and showing a decrease of 28 per cent from November 2008 when 284 condominiums changed hands. In 2008, a total of 5,661 condominium sales transpired, showing a 31 per cent decrease over the 8,236 condominium sales recorded in 2007.

"Overall, I think 2008 was a reasonable year for real estate in Calgary, however, our third quarter really hurt us for unit sales," said CREB® President, Ed Jensen. "If we look back over the past few years, 2006 was an anomaly that presented all the opportunity to the seller. Things started off the same in 2007, but began to shift toward the end of the second quarter, as we watched the supply versus demand gap widen; suddenly all the opportunities that were present for the seller, were now shifting over to the buyer. 2008 basically stayed on that path, with high supply and moderate to low demand. Currently, there are still great opportunities available to the buyer, but how long that will last remains to be seen. Consumers are sitting tight at the moment, watching their dollars and the media at the same time. I look forward to 2009 and seeing what kind of market we'll be presented with. I don't have a crystal ball, but I know one thing for certain, your REALTOR® is your best asset in a shifting market." Jensen concluded.

The average price of a single family Calgary metro home in December 2008 was $417,398, showing a decrease of 6 per cent from December 2007, when the average price was $444,769, and showing a decrease of 4 per cent from November when the average price was $435,471. The average price year-to-date was $460,327, down 3 per cent from the 2007 year-to-date average price of $472,230. The average price of a Calgary metro condominium was $274,919, showing a 10 per cent decrease from December 2007 when the average price was $304,719, and showing a decrease of 4 per cent over last month, when the average price was $285,820. 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.

Single family Calgary metro new listings added for the month of December totaled 836, a decrease of 15 per cent from December 2007, when new listing added totaled 984 and a decrease of 37 per cent from November, when new listings coming to the market were 1,567. Overall in 2008, new listings coming to the market for single family metro were 31,259, almost on par with 2007 when the total number of listings were 31,722; a very slight decrease of just 1 per cent. Calgary metro condominium new listings added in December 2008 were 431, showing a decrease of 8 per cent from the 468 new condominium listings added in December 2007 and a decrease of 42 per cent from last month's condominium listings of 741.

The median price of a single family Calgary metro home in December 2008 was $380,000, showing a decrease of 7 per cent from December 2007, when the median price was $406,788 and down 2 per cent from last month when the median price was $387,300. Year-to-date, the single family Calgary metro median price came in at 409,000, just 3 per cent lower than the 2007 median of $421,000. All Calgary Metro 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.

For more information, please visit creb.com.

George Bamber

George Bamber

Broker/Owner
CENTURY 21 Bamber Realty Ltd.
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