April 2009 Calgary Real Estate Market Review

It's Spring in CalgarySales

Compared to last year, Condo sales remained virtually unchanged this April, registering 579 transacations compared to 581 last April (-0.3%).  SFH sales were down 5%, with 1290 sales this April compared to 1363 last year.

Average & Median Prices

Month-over-month, both SFH average and median prices increased by 1%, to a SFH average of $426,311 and a median of $380k.  The average and median prices dropped in sync compared to last year, with each dropping 10%.

The condo average fell 2% from March to $277,953 – an 11% drop from April 2008.   The condo median price in April was $251,000, (-3% from March, and -13% from April 2008)

Balanced Market in April

Month-end inventory was down nearly 40% for SFH’s and down 36% for condos year-over-year.  This decrease in inventory and similar sales volume compared to last April brought the absorption rate for SFH’s to 3.2 months, and 3.5 months for condos – technically a balanced market for the month.

Inventory Absorption Rate

April 2009

11 responses to “April 2009 Calgary Real Estate Market Review

  1. A Look Ahead Into May

    SFH Pending Sales: 356
    Average: $458,160
    Median: $399,900

    Condo Pending Sales: 175
    Average: $278,354
    Median: 264,900

    Current SP/LP ratio: 96%

  2. Scotia Economics released their Canada-wide real estate trends report today. Click here to read (pdf)

    Buyers, especially first-time, are being lured by historically low mortgage rates, greater affordability and increased supply. The rise in demand, combined with fewer new listings, has
    restored a better balance to the market…These ‘green shoots’ are encouraging. On an annualized basis, average home prices in early 2009 are running about 6% below last year’s levels, while sales volumes are down 16%. This is tracking a slightly better performance than our forecast for a 10% decline in average prices this year, and at the low end of our forecast for a 15-20% drop in sales.

    Nonetheless, we still feel there is more downside than upside risk to home sales and prices. The significant deterioration in domestic labour markets in recent months suggests little prospect for a major resurgence in demand near-term. Meanwhile, a still-high level of active listings relative to underlying demand will continue to pressure prices.

  3. Hi Mike,
    What is happen when if decent houses for 300k-400k price range is gone.How we will
    have deal with price range 500k and up?????

  4. Mike,
    Compared to previous months how does May’s first couple of days compare?

  5. Jones,

    For it to be an accurate comparison, we should wait until after the 7th because sales are slower on weekends. But in any case, here it is so far:

    SFH Sales May 1 -5
    2009: 222
    2008: 211
    2007: 371
    2006: 379
    2005: 308
    2004: 239

    Condo Sales May 1-5
    2009: 96
    2008: 62
    2007: 153
    2006: 147
    2005: 133
    2004: 107

    Gary, I’m unsure as to what your question is.

  6. Global TV’s investigative series on Calgary’s “Dirty Secret” – Mold & New Homes.

    How widespread is it, and how can you protect yourself? Watch the 3+ part series

    click here

  7. Hi Mike,

    As a prospective seller of a near-downtown condo and buyer of a near-downtown SFH ($550k -$650k), it seems like I would be “selling low” and “buying high”. The overall Calgary statistics seem to show similar trends for both houses and condos in terms of changes in sale prices and absorption rates, but that doesn’t match what I’m seeing in my area. House prices (in this price range and area) don’t appear to have experienced nearly the same decrement as condo prices. Specifically, similar units in my building sold last year for more than 30% over what we’ve received as an offer (after 4 months on the market) while SFH prices in the $600k range have been fairly stable over the same period (based on a review of assessed values, historical sales and recent sales).

    Mike, does this match your understanding of whats’ going on closer to downtown? And if so, is this a bad time to be selling a condo and buying a house in this part of the city?… of course, just because things aren’t favourable now doesn’t mean that it’s going to be much better in the next year or two, which is the time window that I’d say we’d consider for making the step up to a house.

    Thanks for your insight!

    Rob

    Mike Fotiou says: Hello Rob! I can give more personalized statistics if you can provide info on the condo you’re planning on selling, and the type/location of home you’re interested in buying.

  8. We’re selling a condo in the Renfrew area listed at $300k (assessed at $372k). We’re hoping to buy somewhere within Renfrew, Bridgeland, Mount Pleasant, Capital Hill, Cambrian Heights, Highland Park, Highwood…. areas – generally north of downtown and relatively central. We would be looking at a house in $600k range. In addition to poorer performance of condos in the past year (compared to the houses we’ve been looking at), I’m concerned about the lack of new inventory in SFH (in this price range and these areas). Thanks Mike!

    Mike Fotiou says: In Renfrew/Regal Terrace, for example, YTD – there have been 24 SFH sales with an average of $449k, and a median of $405k. Last year, there was also 24 SFH sales, however with an average of $537k, and a median of $462k.

    There were 26 condos sold last year between May 1-15th, with an average of $326k, and a median of $315k. YTD, there have been 27 condo sales, with an average of $253k and a median of $250k.

    So yes, %-wise condos aren’t doing as well as SFH in Renfrew. The approx 20% drop YoY is in line with your property tax assessment and your current asking price.

  9. Barbara Jean

    Hi Mike,

    We are looking to buy a condo in Deer Run for 239. Should we wait a while longer or do you think the prices are going to begin to increase?

  10. Hi. Could you please tell me – If you bought a house in Rundle in April 2004 for 186,500.00 and sold it in March of 2006 what do you think the house would have sold for? No upgrades were done to the home .
    A approx. price would be nice to know or what percent house had gone up in that time.

  11. Hello Shannon, I pulled up some examples of properties that sold in Rundle in 2004 and again in 2006. Here are a few:

    Property 1
    April 2004: $188,000
    June 2006: $345,000

    Property 2:
    April 2004: $172,000
    April 2006: $260,000

    Property 3
    April 2004: $204,800
    May 2006: $334,500

    Property 4
    March 2004: $150,600
    Oct 2006: $270,000

    Property 5:
    Feb 2004: $206,000
    June 2006: $340,000

    Property 6:
    January 2004: $175,000
    October 2006: $315,000

    The increases of the above ranges from 51%-83%. For an March 2006 sale, I would lean toward the 51% as prices kept increasing quite dramatically over that summer. Hope this helps some.

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