Real Estate News
CALGARY BUYERS REMAIN CAUTIOUS
November 1, 2010
Sales of million dollar plus homes a bright spot in 2010 market
Calgary, November 1, 2010 - Home sales in the
city of Calgary were down month-over-month
in October 2010, showing signs that buyers
still remain cautious, despite signs of economic
recovery. Year-over-year sales continued to
trend lower in the month of October, according to
figures released today by the Calgary Real Estate
Board (CREB ®).
The number of single family home sales in the
month of October 2010 shrank by 7 per cent at
888, compared with September 2010, when sales
were 958. The number of condominium sales for
the month of October 2010 was 310. This was a
decrease of 15 per cent from the 366 condominium
transactions recorded in September 2010.
Year-over-year, the number of single family homes
sold in October 2010 in the city of Calgary were
down 31 per cent. In October 2009, single family
home sales totalled 1,285. Condominium sales
saw a decrease of 48 per cent from the same time
a year ago. In October 2009, condominium sales
were 601.
"Buyers remain cautious, perhaps waiting to feel
a little more confidence in Calgary’s economic
growth and their own job security," says Diane
Scott, president of CREB ®.
"We believe economic recovery will build
momentum into 2011 as the outlook for oil and
gas and other sectors continues to improve. This,
coupled with low interest rates and improved
affordability, should eventually help to stimulate
Calgary’s housing market," adds Scott.
The average price of a single family home in the
city of Calgary in October 2010 was $444,744,
showing a 3 per cent decrease from September
2010, when the average price was $460,278, and a
4 per cent decrease from October 2009, when the
average price was $462,465. The average price of
a condominium in the city of Calgary in October
2010 was $287,793, showing a 1 per cent increase
from September 2010, when the average price was
$284,028 and no significant change over last year,
when the average price was $289,155. 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 October 2010 was $387,900,
showing a 1 per cent decrease from September
2010 when the median price was $390,000. This
was a 5 per cent decrease from October 2009, when
the median price was $410,000. The median price
of a condominium in October 2010 was $255,000,
showing a 4 per cent decrease from September2010, when the median price was $265,000, and
a 3 per cent decrease from October 2009, when it
was $263,500.
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 being buoyed by more
sales in the million dollar plus category. Despite
a slowdown in certain market segments, homes
sold in the city of Calgary at one million dollars or
more have actually seen an increase of more than
15 per cent when compared to the same time one
year ago. This boost in sales is, indeed, a bright
spot in our current market," says Scott.
Single family listings in the city of Calgary added
for the month of October 2010 totalled 1,765, a
decrease of 22 per cent from September 2010
when 2,252 new listings were added, and showing
a decrease of 3 per cent from October 2009, when
1,819 new listings came to the market.
Condominium new listings in the city of Calgary
added for October 2010 were 721, down 22 per
cent from September 2010, when the MLS® saw
921 condo listings coming to the market. This is a
decrease of 16 per cent from October 2009, when
new condominium listings added were 859.
"We are seeing some decline in the number of new
listings coming on to the market. A continuing
decline in supply will help bring the market into
balance," says Scott.
"We believe we will see a tempering of our
inventory levels, as some sellers offer marginal
reductions in prices, or others choose to pull their
home off the market for a period of time," notes
Scott. "Homeowners should consider speaking
with their REALTOR® about their current
marketing strategy—there are always options in
every market."
"Overall, we’re cautiously optimistic that
Calgary’s economic recovery will pick up as we
move into 2011—but in-migration will be needed
to fuel a sustained recovery in Calgary’s housing
market," says Scott.
For more information, please visit creb.com.
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