Low Interest Rates and Affordability to Support Housing Recovery in 2011
CALGARY, Jan. 4 /CNW/ - Home and condo sales in Calgary and area
remained relatively unchanged in December 2010, indicating that a
full-fledged recovery in the housing market has yet to take hold,
according to figures released today by the Calgary Real Estate Board
The number of single family home sales in the month of December 2010
were 734, compared with November 2010, when sales were 891-a decline of
about 18 per cent. The number of condominium sales for the month of
December 2010 was 320. This was up from the 310 condominium
transactions recorded in November 2010.
Year-over-year, the number of single family homes sold in December 2010
in the city of Calgary were down 8 per cent. In December 2009, single
family home sales totaled 799. Condominium sales saw a decrease of 6
per cent from the same time a year ago. In December 2009, condominium
sales were 341.
Looking back in 2010, total single family home sales in the city of
Calgary were 12,095, a decline of about 16 per cent from 2009, when
total single family sales were 14,440. 2010 marks the lowest number of
single family home sales since 1995, when 9,534 single family homes
were sold. Total MLS® sales for Calgary and area in 2010 were 21,789,
a decline of about 15 per cent from 2009, when total MLS® sales for
Calgary and area were 25,719. This is the lowest number of total MLS®
sales for Calgary and area since 2000, when total MLS® sales were
"Undoubtedly housing markets in Alberta and Calgary underperformed in
2010, as sales recoveries did not materialize as forecasted. In many
ways, re-sales in 2010 showed a repeat of 2008, with a short lived
resurgence in the first few months, when confidence returned to the
market," says Diane Scott, president of CREB® .
"Employment and net-migration have been slower to pick up here in
Calgary-and these are key drivers of our housing market. The good news
is we are now seeing marked improvements in investment and employment
in the energy sector. We believe these green shoots in our economy,
supported by improved affordability and low interest rates, will
eventually translate into a gradual recovery of our housing market as
we move into 2011," adds Scott.
The average price of a single family home in the city of Calgary in
December 2010 was $441,341, showing a 3 per cent decrease from November
2010, when the average price was $455,460, and a 2 per cent decrease
from December 2009, when the average price was $451,341. The average
price of a condominium in the city of Calgary in December 2010 was
$282,768, showing a 1 per cent decrease from November 2010, when the
average price was $284,667 and a 2 per cent decrease over last year,
when the average price was $288,640. 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
December 2010 was $389,000, showing a 3 per cent decrease from November
2010 when the median price was $399,900. This was a 3 per cent decrease
from December 2009, when the median price was $401,000. The median
price of a condominium in December 2010 was $258,500, showing a 2 per
cent increase from November 2010, when the median price was $253,300,
and a 2 per cent decrease from December 2009, when it was $265,000.
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.
"Supply outstripped demand in the second half of 2010, establishing
conditions for a buyers' market. Overall we did see significant
improvements in affordability in the Calgary market in 2010-and I think
the message to prospective buyers is that this is a great time to buy
if you're looking for good selection, specific locations and price
points. The median price did indeed decline in 2010, signaling a
year-over-year price correction of about 2 per cent for single-family
homes, just over 4 per cent for condos and 6 per cent for the outlying
towns," adds Scott.
Single family listings in the city of Calgary added for the month of
December 2010 totaled 744, a decrease of 44 per cent from November 2010
when 1,318 new listings were added, and showing a decrease of 8 per
cent from December 2009, when 806 new listings came to the market.
Condominium new listings in the city of Calgary added for December 2010
were 369, down 42 per cent from November 2010, when the MLS® saw 632
condo listings coming to the market. This is a decrease of 17 per cent
from December 2009, when new condominium listings added were 444.
"There has been some curbing of inventory levels during the last three
months of 2010, albeit at a slow pace. Early 2011 will see inventory
levels adjust, resulting in a gradual return to a more balanced and
sustainable housing market. All in all we believe it will be a slow
and gradual warm up in 2011, but it will take some time for the housing
market to bring inventory levels down and shake off these winter
blues," says Scott.
CREB® is a professional body of 5,540 licensed brokers and registered
associates, representing 245 member offices and is dedicated to
enhancing the value, integrity and expertise of its REALTOR® members.
REALTORS® are committed to a high standard of professional conduct,
ongoing education, and a strict Code of Ethics and Standards of
Business Practice. Using the services of a professional REALTOR® can
help consumers take full advantage of real estate opportunities while
reducing their risks when buying or selling real estate. 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.
Click here for the statistics package.
SOURCE Calgary Real Estate Board
For further information:
Olivia Pavel, Communications Supervisor