Recovery Continues in Calgary Housing Market
CALGARY, Oct. 1 /CNW/ - Calgary home prices show signs of stability as recovery in the housing market begins to take hold.
The average price of a single family Calgary metro home in September 2009 was $459,085, showing an increase of 1 per cent from August 2009, when the average price was $454,130, and showing an increase of 3 per cent from September 2008, when the average price was $444,048. The average price of a Calgary metro condominium was $290,253 showing a 2 per cent increase from August 2009, when the average price was $283,330 and an increase of 1 per cent over last year, when the average price was $287,426. 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 correction in Calgary housing market appears to be stabilizing and downward pressure on home prices is moderating," says Diane Scott, president elect of the Calgary Real Estate Board.
The number of single family homes and condos sold in September 2009 in Calgary metro are also both up from the same time a year ago.
September saw 1,257 single family homes sold in Calgary metro. This is an increase of 9 per cent from September 2008, when single family home sales were 1,152. This is a decrease of 2 per cent from 1,277 sales in August of this year. The number of condominium sales for the month of September 2009 was 580, an increase of 25 per cent from September 2008 when 465 condominiums changed hands. This was a decrease of 8 per cent from the 632 condominium transactions recorded last month.
"Indeed the market is harder to predict in these early stages of recovery," says Scott. "Sales were stronger than expected in the summer months - easing slightly in September. We expect a gradual and measured uptake in sales as we enter the fall market."
Single family Calgary metro new listings added for the month of September totaled 1,857, a decrease of 3 per cent from August 2009 when 1,910 new listings were added, and showing a decrease of 29 per cent from September 2008, when 2,631 new listings came to the market. Calgary metro condominium new listings added in September 2009 were 940, up 13 per cent from August 2009, when the MLS(R) saw 832 condo listings coming to the market. This is a decrease of 21 per cent from September 2008, when condominium listings were 1,186.
The median price of a single family Calgary metro home in September 2009 was $399,900, showing no significant change from August 2009, when the median price was $400,000, and up 1 per cent from September 2008, when the median price was $395,000. The median price of a condominium in September 2009 was $265,000, up 2 per cent from August 2009, when the median was $260,000, and showing no change from September 2008, when the median price was $265,000. All Calgary metro MLS(R) 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.
"In the third quarter Calgary shifted to a more balanced housing market. But conditions are still very favourable for home buyers," says Scott. "Mortgage rates remain low, affordability continues and federal government incentives such as the $5,000 tax credit may motivate first-time homebuyers to make a purchase before the end of the year."
"This recession has been a tricky one. Consumers were expecting the worse yet the housing rebound came faster than expected. I think it is safe to say the worst is behind us, but it will take some time for consumers to really shake off their economic jitters," adds Scott.
CREB(R) is a professional body of 5,432 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(R) active listings for Calgary and area may be found on the board's website at www.creb.com.
SOURCE CALGARY REAL ESTATE BOARD
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