City of Calgary sales wane as town and country sales hold steady
Calgary, September 1, 2010 - Home sales in the city of Calgary continued to trend lower in the month of August, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family homes sold in August 2010 in the city of Calgary was down 32 per cent from the same time a year ago, and condominium sales saw a decrease of 42 per cent from the same time a year ago.
August 2010 saw 867 single family homes sold in the city of Calgary. This is a decrease of 5 per cent from 915 sales in July 2010. In August 2009, single family home sales totaled 1,277. The number of condominium sales for the month of August 2010 was 364. This was a decrease of 8 per cent from the 396 condominium transactions recorded in July 2010. In August 2009, condominium sales were 632.
"Calgary's housing market has been undergoing a measured correction over the past 4 to 5 months. Sales are trending lower as a result of a decrease in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery," says Diane Scott, president of CREB®.
"There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer's market."
"A slower than anticipated pace of mortgage rate hikes and continued improvements in employment are more likely to bring stability rather than volatility into Calgary's housing market as we move into 2011," adds Scott.
The average price of a single family home in the city of Calgary in August 2010 was $445,617, showing a 4 per cent decrease from July 2010, when the average price was $464,655, and a decrease of 2 per cent from August 2009, when the average price was $454,130. The average price of a condominium in the city of Calgary in August 2010 was $286,384, showing a 2 per cent decrease from July 2010, when the average price was $291,168 and a 1 per cent increase over last year, when the average price was $283,330.
"We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011," says Scott.
"Home buyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region. A case in point is the relative strength of Calgary's town and country market, where sales have remained at 2009 levels.
Home buyers and sellers should speak to a REALTOR® to better understand the opportunities in our current market," says Scott.