CALGARY REAL ESTATE MARKET SLOWLY SHAKING OFF ITS WINTER BLUES

Posted by Justin Havre on Wednesday, April 1st, 2009 at 11:45pm.

 Calgary, April 1, 2009 – MLS® sales activity of single family Calgary metro homes was 1,086 in the month of March 2009 showing an increase of 32 per cent from 825 sales in
February 2009, according to figures released by the Calgary Real Estate Board (CREB®). This was a decrease of 23 per cent from March 2008 when single family home sales
were 1,418. The number of condominium sales for the month of March 2009 was 446, an increase of 30 per cent from the 343 condominium transactions recorded in
February 2009 and a decrease of 21 per cent from March 2008 when 565 condominiums changed hands.

“The Calgary market is slowly shaking off its winter blues,” said Calgary Real Estate Board President, Bonnie Wegerich. “Spring has brought a nice up tick in sales this month
and the supply of homes has been trending lower. It is also the first time that the year over- year decline in average price has started to decelerate—a sign that we are moving into
a more balanced market.” The president of the Calgary Real Estate Board said sales typically pick up after January and to gradually increase until June
and the start of the summer holiday season.

“As we enter the spring market sellers seem to be serious about pricing their homes competitively,” added Wegerich. “Low mortgage rates could also help explain at
least some of the increase in sales, Wegerich said, noting she’s heard of five-year rates well below 4%.”

The average price of a single family Calgary metro home in March 2009 was $420,354, showing an increase of just over 1 per cent from February 2009, when the average price
was $415,568 and showing a decrease of 11 per cent from March 2008 when the average price was $474,513. The average price of a Calgary metro condominium was $284,056,
showing a 6 per cent increase from February 2009 when the average price was $268,971 and showing a decrease of 9 per cent over last year, when the average price was $312,620.
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.
“Buyers will continue to have choice and affordability in this market,” said Wegerich. “Buyers have not seen this kind of selection and choice for years. Competitive pricing will
remain a reality of this market, but I think the REALTORS® are educated, licensed professionals trained to guide you through the real estate transaction.

Commence of spring sees home re-sales in Calgary Metro at 1,086 No MLS® information can be reprinted without sourcing the Calgary Real Estate Board. Total MLS® Inventory to Sales
Total MLS® REALTOR® SOLD PROPERTIES MARCH 2009 Absorption Rate decline in average price is beginning to show some signs of stability,” added Wegerich. Single family
Calgary metro new listings added for the month of March totaled 2,023, down just 2 per cent from the 2,057 new listings added in February 2009 and showing a decrease of 42 per cent from March 2008,
when new listings coming to the market were 3,493. Calgary metro condominium new listings added in March 2009 were 903 up 1 per cent from February 2009 when the MLS® saw 892 condo listings coming to the
market. This is a decrease of 42 per cent from March 2008 when condominium listings were 1,561.

“It is very encouraging to see the return of a more balanced market. Our inventory has come down dramatically. If sales continue at current levels we are looking at about a four months supply of single family homes
currently on the re-sale market,” noted Wegerich.

The median price of a single family Calgary metro home in March 2009 was $375,000, showing no change from February 2009, and down 11 per cent from March 2008 when the median price was $420,000. The median
price of a condominium in March 2009 was $260,000 up 4 per cent from February when the median was $249,900 and down 11 per cent from March 2008 when the median price was $293,000. 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.
“Undoubtedly job insecurity might keep some potential home buyers on the fence. But we should keep in mind that nearly 96% of Calgarians are still working—one of the lowest jobless rates in Canada. Those who
are confident in their job security can benefit from improving affordability and record low mortgage rates,” said Wegerich.
The Calgary Real Estate Board is a professional body of 5,156 licensed brokers and registered associates, representing 253 member offices. 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.

---

---

Leave a Comment

• Your Name * Your Email * (private)
• Website
• Comment *

Submit Comment