I’m sure glad new condominiums such as Cardel’s projects are apparently showing signs that the Calgary multi-family is coming out of the recession. Which probably explains why the resale market continues to struggle – new condos are siphoning off all the buyers…
Metro-Calgary condo sales last week dropped to their lowest point since January. Blame it on nice weather, poor weather, the long weekend, the Stanley Cup finals, or Cardel – whatever you want.
Condo Weekly Sales (click to enlarge)
Fact is, month-to-date condo sales are down almost -7% and year-to-date are down -11.5%. (Remember, CREB forecast a 15.8% increase this year. They have 7 months to hope for a 180)
Pending Sales (click to enlarge)
If enough of the slightly elevated pending sales don’t firm up on Monday & Tuesday, it will mean condo sales were down year-over-year for the 13th straight month. Not exactly an argument for a strengthening condo market.
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Single Family Homes
The single family segment is showing more positive signs. Pending sales hit their highest point this week and are tracking above last year’s levels.
SFH Pending (click to enlarge)
However, upon looking at last week’s sales, the increase in pendings seems more to do with a backlog of transactions not firming up rather than increased buyer momentum.
SFH Weekly Sales (click to enlarge)
Whereas in 2009 the May long weekend marked the start of a busy summer, this year seems to be following closer to 2010′s muted pace.
So far this month, sales are up 1.1% MTD (1191 sales VS 1184 in May 1-28, 2010)
Year-to-date, SFH sales are showing an impressive 0.03% increase over last year and closing in on the 19.9% increase forecast by CREB for 2011.
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Inventory and new listings are much lower than this time last year — check back on Wednesday for the month-end May report.
Be sure to follow the daily statistics on my webpage at:
This year has been so hard to predict! We bought our first home (SFH) in Cranston back in April, and we went through with it because most of the upgrades were free, and it cost lost for the new home than to buy a resale.
I’m wondering whether the market has finally bottomed out here in Calgary- particularly for the SFH market?
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As to whether the market has bottomed out or not, it just depends on who you talk to…
Mike Fotiou says: Congrats on your new home!
Royal Bank, TD lower residential mortgage rates
Financial Post, May 30 2011
The Royal Bank of Canada, TD Canada Trust and Bank of Nova Scotia all announced Friday that they were lowering certain residential mortgage rates by 0.10 per cent, effective May 28.
Read more: http://www.calgaryherald.com/Royal+Bank+lower+residential+mortgage+rates/4861736/story.html#ixzz1Nql3BvLl
CIBC, Laurentian lower mortgage rates
The Canadian Imperial Bank of Commerce and Laurentian Bank announced Monday they are lowering the rate on several of their residential mortgage products by 0.10%, effective May 31.
The announcements follow similar rate decreases announced on Friday by Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia, effective May 28.
Read more: http://www.canada.com/business/CIBC+Laurentian+lower+mortgage+rates/4863184/story.html#ixzz1Nrw1eYdr
Hi Mike,
I heard a rumor that the Midtown Calgary condo is fully dead now and the development is going to be office space. Do you know what will hap
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Mike Fotiou says: I haven’t heard anything, Mac. I believe you were about to ask about the Buyer’s deposits, and I don’t know the answer to that either at this time. I will keep you updated if I find anything out.
Hi Mike,
Thanks for your response – yes, that’s what I was going to ask about – stupid iPhone screen! Thanks, I appreciate that – great resource by the way.