Calgary’s Real Estate Market Is Hot, But Not 2006 Hot

Calgary’s housing market is performing exceptionally well today, but we are nowhere near the frenzied level from 2006 (Wow…I can’t believe it’s been 8 years already)

A lot was different back in 2006.  You could assume a mortgage in Alberta without even having to qualify for it.    That year, in response to its private-sector rivals, CMHC extended amortization lengths to 30-years, 35-years and finally 40 years.  CMHC also began offering insurance on mortgages that covered 100% of home prices, or in other words, no down payment was required from buyers.

Even though interest rates were higher then, the relaxing of the mortgage rules suddenly raised the price ceiling of what buyers could qualify for.

Comparing 2006 Market to 2014

In February 2006 there were 2,601 sales or 40.3% more sales than the 1,854 this February.

February sales below boom-time levels

February sales below boom-time levels

In February 2006, 841 or 32.3% of homes sold above asking compared to 364 or 19.6% this February.

Sales At List Price Or Above, 10 Year Historical

Sales At List Price Or Above, 10 Year Historical

It may be hard to believe but there was even less inventory for sale then.   There were only 826 single family homes listed in February 2006 compared to 1894 this year.

2006 inventory lowest in a decade

2006 inventory lowest in a decade

The sales-to-new-listings ratio in 2006 was at 96% which meant nearly a home sold for every one that was listed.    Last month the ratio was “only” at 68% – still a seller’s market but not at extreme as back then.

Finally, housing was much less expensive.  The average price  in the City of Calgary in February 2006 was $316,531.  Last month it was $482,530.

City of Calgary Prices (overall)

City of Calgary Prices (overall)

What differences or similarities do you note in the market from then to now?

4 responses to “Calgary’s Real Estate Market Is Hot, But Not 2006 Hot

  1. Hmm the sales spikes in the graph are almost similar. Maybe it’s not so hot right now as with 2006 before because of the current prices of real estate in Calgary.

  2. Keep it this way but don’t go frenzy further

  3. Pingback: BMO: Alberta Bound…For Another Housing Boom | Calgary Real Estate Review

  4. Pingback: Lethbridge Real Estate Market Update: May 2014 :: Karri Flatla

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