December 1-21, 2013 Calgary Real Estate Market Update

Two narratives have emerged  in our housing market through 3 weeks of December with single family home and condo-townhome prices headed one way and condo-apartments trending another.

Single family home sales are 1% y/y  and prices are at their highest level ever for the month.   The average price is up 5.26% from last December while the usually more reserved median price has increased double that amount: 11.79%.

The Condo-Townhome market segment remains in high demand with sales up 54.4%.   The average price has increased 8.49% while the median is up 20.86%.

Single Family Homes: Y/Y Comparison

Single Family Homes: Y/Y Comparison

What hasn’t followed suit with price gains are Condo-Apartments.    While sales are up 4% from last December, prices have fallen:  the average price is down -5.53% and the median is down -7.87%.

New listings for apartments are up 37.69% and has eased the sales-to-new-listings ratio below the 100% threshold.     By comparison, SFH new listings are up only 1.3% with a ratio of 112.87% while townhomes are the deepest in seller’s market territory with new listings down -2% and a 147.87% ratio.   Despite the new listings surge for apartments, the number of units for sale is -15% below what was available this time last year.

For both townhomes & apartments, we’re dealing with a relatively small sales sample which allows for easily skewed prices – but it’s something to keep an eye on in the coming months.

$1M+ home sales

Luxury home sales, Y/Y Comparison

The high-end market is in a neck-and-neck sales race.   A total of 33 homes have sold for $1M or more MTD, compared to 32 last December during the same period.  December 2012 holds the monthly record with 39 luxury sales.

Dec 1-21 Statistics Summary

Dec 1-21 Statistics Summary

 

5 responses to “December 1-21, 2013 Calgary Real Estate Market Update

  1. Great data and analysis Mike, and complimentary to a natural progression of the buying process when money is inexpensive. In the larger picture though I believe it isn’t diverging trends we’re witnessing rather the recent deterioration of average apartment prices is part of the same trend that developed for singles and townhomes.
    Sustained low interest mortgages seduce most home buyers to buy the biggest and best they can qualify for hence the surge in singles that started in the spring of 2012. The quantity of townhome sales only started to accelerate in the mid part of this year after the second blistering sales year for single family was fully underway forcing a significant price gap to develop between singles and all condos. Those who wanted a home but couldn’t keep up the pace for singles turned their attention to townhomes. Increased sales and prices for townhomes materialized instantly this fall and continues.
    Like following acts in a play, a gap for price and inventory levels is now developing between townhomes and apartments. This undoubtedly will soon trigger a swell in apartment sales and the natural corresponding rise in prices. Look out ‘below’ starting end of January!
    Liken this process to a python swallowing a pig. Apartments are simply the last to be devoured.
    This process of a rush of sales for singles followed by townhomes then apartments is reversed when money is expensive.

  2. wish we could get into the market , all we have been able to do is sit and watch on the sidelines .

  3. Poor anonymous.
    Now you will likely struggle in life forever….

  4. I judge that anonymous is either carioca canuck or another of those bubble/renter types of a few years back…

  5. Just about everyone I know who complains about not being able to buy a home also have all of the latest tech gadgets, the latest fashions, brand new vehicles, an exotic vacation every year and they spend most weekends entertaining themselves at bars or restaurants. There’s no money left to save for a down payment.

    When this fact is pointed out to them, they angrily defend their lifestyle choices and complain that house prices are too high. Even if house prices were half of what they currently are, these people will never be able to afford one because they will never be able to sacrifice and defer gratification long enough to SAVE their money.

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