November 1-21, 2012 Calgary Real Estate Update

It took until week three but single family home sales are finally showing a y/y increase – albeit very slight.    There were 684 sales averaging $490,489 which is an increase of 0.74% and 4.30% respectively over last year.

The median price is currently sitting at $420,000 – up $10,000 or 2.4% y/y.

SFH sales (click to enlarge image)

The condominium market is performing better than last year with sales up 14.55% to 307 month-to-date.

So far this month the average price is up 8.9% to  $300,260 ($275,757) and the median is up 9.75% to $273,500 ($249,200)

Note: without the $1.49M presale at the River, the MTD average price would be $296,372 with a median of $273,000.

Condo Sales (click to enlarge image)

New listings continue to be in short supply across all market segments.  SFH new listings are down -10%,  condo-apts -12.2% and condo-townhomes -13%

RBC Housing Trends & Affordability

Below is the excerpt for Calgary in RBC’s recent report (download here)

Calgary – Affordability at a multi-year best
The Calgary-area market both bucked and matched trends in other markets in Canada in the third quarter. It bucked the slowing trend in home resales by experiencing steady activity relative to the second quarter. At the same time, it matched the broad based improving trend in housing affordability. In the
third quarter, RBC measures eased between 0.2 percentage points and 0.7 percentage points in the Calgary area to multi-year lows. The last time the measure for two-storey homes was this low (39.3%) in the area, for instance, was in early 2009. We need to go even further back to late 2005 to find the last time we saw the current level for condominium apartments (22.7%).

A  significant pick up in resale activity during the first half of this year tightened market conditions noticeably in Calgary. This tightening may eventually lead to stronger upward pressure on home prices in the area.

To view in depth Calgary housing information including condo statistics broken out into Apartments and Townhomes, and to browse homes listed for sale, please visit my website at:

FindCalgary

Questions? Ready to buy or sell real estate? I can be contacted at mike@findcalgary.com or 403-554-2284

3 responses to “November 1-21, 2012 Calgary Real Estate Update

  1. From ATB’s Weekly commentary out today:

    “A major reason why home prices decline slightly during downturns is simple: the majority of households have the option to simply delist and wait. Housing activity slows, but prices don’t crater. Over time, as incomes and inflation begin to put pressure on home prices, activity returns. This is the typical housing cycle that Alberta has more or less followed. Now, the hope is the national housing market stays on script.”

    Do you agree?

  2. Yes. People hesitate to sell their house for less than they think it is worth, and they tend to think it is worth more than it is, particulary during a housing market downturn. It’s a type of endowment effect:http://en.wikipedia.org/wiki/Endowment_effect (also referred to as divestiture aversion). I suspect this has the corollary effect of decreasing labour market mobility during a housing market downturn.

  3. Hello Anon,

    Sorry, I didn`t see your post earlier. Thanks for commenting.

    The problem is when people have to sell, regardless whether they think the selling price is too low. If the BoC ever raises interest rates, it will mean a number of homeowners will be squeezed.

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