Calgary buyers looking for the right price, location and conditions
Calgary, December 1, 2010 – November home sales in the city of Calgary remained steady month-over-month, while year-over-year sales were down, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family home sales in the month of November 2010 held firm at 891, compared with October 2010, when sales were 888. The number of condominium sales for the month of November 2010 was 310. This was the same as the 310 condominium transactions recorded in October 2010.
Year-over-year, the number of single family homes sold in November 2010 in the city of Calgary were down 19 per cent. In November 2009, single family home sales totaled 1,095. Condominium sales saw a decrease of 38 per cent from the same time a year ago. In November 2009, condominium sales were 504.
“Indeed, the second half of 2010 has proven to be weaker than expected, and Calgary’s housing market is taking some time to re-gain traction,” says Diane Scott, president of CREB®. “Subdued sales have meant buyers have an abundance of product to choose from, and they can be selective in their buying criteria.”
“In this market, REALTORS® and their sellers have to be competitive in their pricing and go back to the basics—condition, location and price,” adds Scott.
The average price of a single family home in the city of Calgary in November 2010 was $455,460, showing a 2 per cent increase from October 2010, when the average price was $444,744, and a 2 per cent decrease from November 2009, when the average price was $464,444. The average price of a condominium in the city of Calgary in November 2010 was $284,667, showing a 1 per cent decrease from October 2010, when the average price was $287,793 and a 3 per cent decrease over last year, when the average price was $294,264. 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 November 2010 was $399,900, showing a 3 per cent increase from October 2010 when the median price was $387,900. This was a 2 per cent decrease from November 2009, when the median price was $408,000. The median price of a condominium in November 2010 was $253,300, showing a 1 per cent decrease from October 2010, when the median price was $255,000, and a 4 per cent decrease from November 2009, when it was $264,900.
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.
“We are not likely to see any major dips in pricing over the coming months, but there may be some decline in our average and median prices as motivated sellers reduce their price, and we work through our increased levels of inventory” says Scott. “The good news is that we are seeing a downward trend on our overall inventory levels, and our absorption rate is gradually improving,” adds Scott.
Single family listings in the city of Calgary added for the month of November 2010 totaled 1,318, a decrease of 25 per cent from October 2010 when 1,765 new listings were added, and showing a decrease of 3 per cent from November 2009, when 1,365 new listings came into the market.
Condominium new listings in the city of Calgary added for November 2010 were 632, down 12 per cent from October 2010, when the MLS® saw 721 condo listings coming to the market. This is a decrease of 10 per cent from November 2009, when new condominium listings added were 705.
“Unemployment peaked at around 7.6 per cent at the middle of this year, and has been slowly improving since then. We do expect Calgary and Alberta’s economy to improve in 2011, driven in part by recent improvements in the energy sector. Ultimately it is going to take boosts in employment, along with more migration, to kick-start Calgary’s housing market,” says Scott.