Airdrie Real Estate Market Report: January 2015

While the benchmark price of an Airdrie home increased 9.9% year-over-year in January there are strong signals of a weakening market ahead.

The average price was down -1.12% from $384,409 to $380,117 and the median fell -2.21% from $385,500 to $376,982.

Airdrie historical prices

Airdrie price trends

Sales were on par with 65 during the month compared to 67 the previous year.

Airdrie sales, Y/Y January Comparison

Airdrie sales, Y/Y January Comparison

Inventory, however, spiked 143.7% y/y and above the 10 year historical average for the month.   With the significant increase in listings and flat sales, the absorption rate shot up from 1.78 months to nearly four and a half months and has shifted to a buyer’s market.

Airdrie Inventory

Airdrie Inventory

Airdrie real estate stats for January 2015

Airdrie real estate stats for January 2015

Download the 10 year historical Airdrie real estate statistics: click here pdf

2 responses to “Airdrie Real Estate Market Report: January 2015

  1. Mike, what does the benchmark price represent?

  2. Hello Curt,

    The short version is that the benchmark price represents the monthly price of a “typical” home based on it’s attributes. It helps show price trends, not the value of a specific property. The attributes of a “typical” Airdrie detached home is listed on page 6 of CREB®’s January report.

    For Calgary, I track the MLS® HPI along with other indices, namely: Teranet’s, Brookfield’s, Statistic Canada’s NHPI, and of course the average & median price. Altogether, you can get a clear picture showing how market prices are trending. (Here’s a chart from a few months back showing price growth was slowing)

    The MLS® HPI methodology has been reviewed and endorsed by representatives from Statistics Canada, Canada Mortgage and Housing Corporation, the Bank of Canada, Finance Canada and Central 1 Credit Union.

    Some more information about the MLS HPI® (benchmark) from homepriceindex.ca:

    Q: How is the MLS® HPI different from average and median home price calculations?

    A: The MLS® HPI is based on the value homebuyers assign to various housing attributes, which tend to evolve gradually over time.

    This means that price changes calculated using the MLS® HPI are less volatile than those derived using common measures like average and median, which can swing dramatically in response to changes with high-end or low-end sales volumes over time.

    It is often difficult to determine if average or median price fluctuations really reflect changes in buyers’ willingness to pay for certain housing attributes, or just changes in the volume of very expensive or inexpensive home sales from one time period to the next. The MLS® HPI removes that uncertainty.

    And some more info from CREB®:

    The MLS® HPI is calculated using a sophisticated statistical model that estimates home prices based on their quantitative and qualitative features, including:

    -Number of rooms above the basement level;
    -Number of bathrooms and half-bathrooms;
    -Square footage for main living and basement areas;
    -Whether it has a fireplace and/or finished basement;
    -Lot size;
    -The age of the property;
    -Parking;
    -How the home is heated;
    -Foundation, flooring, siding and roofing types;
    -Whether the property has a waterfront or panoramic view;
    -Whether the property has been sold previously; and
    -Proximity to shopping, schools, hospitals, police stations, churches, sports centres, golf courses, parks, and transportation (including train stations, airports etc.).

    Upon valuating these features or attributes, the index and the benchmark price are formulated.

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