For the first time in 18 months Calgary prices were higher than a year earlier according to the Teranet-National Bank House Price Index. The increase was a meagre 0.1%, however with Calgary now in positive territory, no markets in the survey are showing year-over-year depreciation.
Between November and December Calgary prices increased 1.6%, however that’s still 9.3% off from the pre-recession peak recorded in August 2007.
Canada-wide, December prices were up 5.2% from a year earlier and 1.2% higher than November. With this increase the composite index has now hit a new record high.
Source: housepriceindex.ca
The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index.
All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.
-
Market Trends Report
In other news, RE/MAX has released their Market Trends 2010 report for Canada. The following is the excerpt for Calgary. You can read the rest of the report attached below. (Please bear in mind that this is a RE/MAX report. Don’t read it if you’re wanting an analytical or balanced commentary 
)
An improved economic outlook, combined with record low interest rates and affordable housing, are fuelling recovery in Calgary’s residential real estate market. Home sales are up considerably over one year ago, with 762 single-family homes and 376 condominiums sold, compared to 550 and 225 one year ago. Inventory has declined dramatically (down 26 per cent for Total MLS) and is now more in-line with the healthy supply of years past. The supply of detached homes is beginning to tighten, with multiple offers becoming more prevalent in hot pockets throughout the city, particularly well-priced, entry-level product. Properties that were slow to move last year are beginning to sport sold signs.
Buyers remain grounded, however, with most homes selling at close to list price, but not over, even with competing bids. First-time buyers continue to drive the market, looking to take advantage of greater affordability before the window of opportunity closes. The condominium market has picked up considerably in recent weeks, with inventory also on a downward trend. Average price, while still off peak 2007 levels, continue its ascent, rising seven per cent in the single-family category to $441,217 and four per cent in the condominium category to $282,639 over January 2009 levels.
There has been a notable push by purchasers to get in before predicted interest rate hikes and tighter lending criteria. To that end, buyers are being more cautious in their pursuits, deliberately choosing not to max out debt service ratios, with a trend towards more modest pursuits that can be afforded. The market is picking up at all levels, with move-up buyers increasingly active. Demand for upper end homes was strong in January, with 12 sales over $1 million. The momentum in the luxury segment is expected to continue, as those who held off purchasing last year finally make their moves.
Investors are a growing presence in Calgary’s real estate market, capitalizing on low interest rates and healthy rents. Their choice of properties is varied including low-density multi-unit residential such as duplexes and triplexes, as well as starter homes and condominiums.
A very active Spring market is forecast, with supply expected to improve. However, if new listings continue to decline (January new listings were down approximately seven per cent), all bets are off . Consumer confidence is steadily increasing, although optimism remains slightly guarded. The economic picture is improving, which will bode well in the coming months.
