May 2009 – Calgary Real Estate Review

Posted on June 2, 2009 | 5 Comments

For CREB’s May 2009 Statistics Package: click here (pdf)

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A Look Ahead: Pending Sales (C/S)

As of today, there were 478 SFH transactions pending.

Pending SFH Average: $458,448
Pending SFH Median: $402,450

There are also 231 Condo transactions pending

Pending Condo Average: $289,350
Pending Condo Median: $269,900

Metro-Calgary Pending Sales Overview

Interest Rates

Because of an increase in bond yields, fixed-rates are on their way up. RBC’s new posted 5 year fixed rate is up 0.20% today. It’s almost certain that BMO, Scotia, CIBC & TD will follow suit shortly.

If you were planning on locking-in soon, talk to your mortgage specialist as there are some other lenders that have not increased their rates yet.

5 Responses to May 2009 – Calgary Real Estate Review

Mike Fotiou | June 2, 2009 at 3:33 pm |

Castello Condo Stimulus Package – Calgary Herald, June 2

Homburg Invest Inc., said it doesn’t want to sit on unsold condos and Tuesday it announced its program for the 19-storey Castello development at 530 12th Ave. S.W.

In the 106-unit building, there are 42 remaining to be sold…Prices have already been slashed by an average of $100,000 per unit in the condo tower with 60 per cent of the 106 units occupied. Prices range from a low of $400,000 to $1.1 million.

Read More….

In February, a national housing report said new unsold condominiums are becoming a concern in the Calgary market.

The Altus Group Housing Report said most of the unsold units in Calgary are already completed or under construction and the expected decline in new condo apartment sales this year could lead to a “sizable” increase in the number of completed and vacant units.
Mike | June 3, 2009 at 12:53 am |

“RBC’s new posted 5 year fixed rate is up 0.20% today. It’s almost certain that BMO, Scotia, CIBC & TD will follow suit shortly.”

BMO:

BMO Bank of Montreal announced today it is changing its residential mortgage rates, effective June 2, 2009.

The new rates are:

Fixed Rates: To: Change:

5 year fixed closed 5.45% +.20%
7 year fixed closed 6.80% +.20%
10 year fixed closed 6.95% +.20%
Mike | June 3, 2009 at 12:57 am |

These increased mortgage rates come at a time when housing prices haven’t hit bottom yet. This will cause the house price floor to be another floor lower.

Mortgage rates should double in the next couple of years as bailout money, inflation and increased taxes take hold.

Now would be the time to lock in on that fixed mortgage or save for a bigger down payment so not only your interest is greatly reduced but also when you go to renew in 5 years time it won’t be at a 10% (or more) rate.

Mike
Mike Fotiou | June 4, 2009 at 1:29 pm |

More price cuts from condo developers, this time from Anthem Properties and its Waterfront Two condo development along the Bow River in the Eau Claire district.

Price reduction depends on the unit with some in the range of 20 to 25%. Some large 2 bedrooms have been reduced by as much as $187,000. 35 units are priced under $300,000.

Read more: Calgary Herald, June 4, 2009

It’s interesting to compare with the demand Waterfront ONE had when it was launched back in 2007:
Roger | July 28, 2009 at 7:39 am |

The data provided in the blog will be of great help for construction companies. Even I know a resource named Construction Wire (http://www.constructionwire.com/) from where you can get details of major construction projects done in the past as well as bid for fresh projects. I am taking the help of this online resource and highly recommend it to others also.