February Archive

2006 Ends With a Quiet Growl

Calgary, January 3, 2006 - Calgary's MLS Sales and Listings numbers closed the year with record breaking figures, according to figures released by the Calgary Real Estate Board (CREB).

Year-to-date combined residential sales totaled 32,912, the highest ever recorded in MLS history and an increase of 4.53% over 2005's year end combined residential figure of 31,485. Listings, while slow at times during 2006, finished at 44,712, surpassing 2005's year end combined listing number of 39,698, showing an increase of 12.63 per cent.

The December residential combined sales rang in at 2,015, showing an increase of 7.52 per cent from December 2005 when the sales were recorded as 1,874 and showing a decrease of 12.88 per cent from November's sales of 2,313.

The following shows the breakdown of the December combined sales; 1,414 single-family residences, 593 condominium, and 8 mobile homes. December 2005 sales in the same categories were, 1,341, 530, and 3, respectively.

Combined residential listings in December were 1,670, showing a typical seasonal drop of 41.40 percent from the 2,850 recorded in November, but showing an increase of 6.98 per cent from the 1,561 listings that came to the market in December 2005.

The average year-to-date residential sale price was $346,673, an increase of 38.17 per cent over the year end average price in 2005 of $250,906. The average combined residential sale price for December 2006 was $361,640, showing a 32.35 per cent increase over December 2005, when the average price was $273,238, and showing a slight increase of 0.27 per cent from the November average price of $360,674. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of December 2006 over 2005:

Year-to-date Condominium sales were a record breaking 9,608, an increase of 9.76 per cent from 2005's year end number of 8,754. Condominium sales in December totaled 593 showing an increase of 11.89 per cent over December 2005 when 530 condominiums changed hands and a decrease of 11.49 per cent from the 670 sales recorded in November.

The average sale price of a condominium in December 2006 was $281,459, an increase of 46.28 per cent from December 2005 when the average price was $192,412 and a very slight decrease of 0.43 per cent from November's average price of $282,680.

"It is good to see that unit sales in December 2006 were up slightly over December 2005, probably due to having 50% more inventory as we close the year," says Calgary Real Estate Board President, Kevin Clark. "That however is not the full picture. Of the properties that sold in December, 40% had reduced their price by an average of 5.3% before selling; 90% negotiated a sale price an average of 3% below their asking price; and 11% sold at or above list price! It remains a complex market, so talk to your REALTOR; it will be the best investment you make in 2007", concluded Clark.

- The Calgary Real Estate Board

November Archive

FOUR MONTHS OF INCREASING INVENTORY AND SUBSEQUENT PRICE REDUCTIONS GIVE BUYERS A WELCOME EDGE!

Calgary, November 1, 2006 - MLS listings remained strong in October 2006, providing buyers with more product to choose from, according to figures released by the Calgary Real Estate Board.

October combined residential sales totaled 2,122, showing a slight decrease of 2.66 per cent from last month's sales of 2,180 and showing a decrease of 17.69 per cent from October 2005 when the sales were recorded at 2,578. The following shows the breakdown of the October combined sales; 1,492 single-family residences, 619 condominium, and 11 mobile homes. October 2005 sales in the same categories were, 1,806, 760, and 12, respectively.

The average combined residential sale price for October 2006 was $374,067, showing a 46.90 per cent increase over October 2005, when the average price was $254,643, and a 1.12 per cent increase over last month's average price of $369,928. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of October 2006 over 2005:

• Single-family $413,712 / $284,206;
• Condominium $283,888 / $187,661; and
• Mobile home $71,309 / $47,658.

October 2006 new residential combined listings totaled 4,257. This is a 51.44 per cent increase over October 2005, when 2,811 new listings came to the market and showing an 11 per cent decrease over the 4,783 homes listed in September.

Condominium sales in October totaled 619 showing a decrease of 18.55 per cent from October 2005's sales of 760 and a 7.20 per cent decrease over the 667 condominiums sold in September 2006. The average sale price of a condominium in October 2006 was $283,888 a 51.28 per cent increase from October 2005 when the average price was $187,661 and a 1.66 per cent decrease from last month's record breaking condominium average price of $288,676.

"Buyers have a welcome window of opportunity with this considerable increase of inventory", says CREB President, Kevin Clark. "Sellers must be competitive to sell before Christmas and buyers may lose out by waiting until spring," he continued. "This is an unusual market, so confirm with your REALTOR that you are making the best decisions."

- The Calgary Real Estate Board

October Archive

MLS SALES COOL SLIGHTLY WHILE LISTINGS INCREASE

Calgary, October 2, 2006 - MLS sales took a slight dip in September from last month sales, but new listings coming to the market showed an increase over last month, according to figures released by the Calgary Real Estate Board (CREB).

September combined residential sales totaled 2,180, showing a 13.35 per cent decrease from last month's sales of 2,516 and showing a decrease of 17.46 per cent from September 2005 when the sales were recorded at 2,641, the highest September recorded on the MLS. The following shows the breakdown of the September combined sales; 1,493 single-family residences, 667 condominium, and 20 mobile homes. September 2005 sales in the same categories were, 1,891, 731, and 19, respectively.

The average combined residential sale price for September 2006 was $369,928, showing a 45.64 per cent increase over September 2005, when the average price was $253,995, and a 1.15 per cent increase over last month's average price of $365,732. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of September 2006 over 2005:

• Single-family $410,326 / $283,523;
• Condominium $288,676 / $183,217; and
• Mobile home $64,025 / $38,381.

September 2006 residential combined listings totaled 4,783. This is a 47.17 per cent increase over September 2005, when 3,250 new listings came to market and showing an 11.99 per cent increase over the 4,271 homes listed in August.

Condominium sales saw a decrease with 667 units changing hands. Sales for condominiums for the same period last year were 731 showing a decrease of 8.76 per cent and a decrease of 17.86 per cent from last month's 812 sales. The average condominium sale price in September 2006 was $288,676, a record high for condominiums recorded on the MLS, compared to the $183,217 in September 2005 showing a 57.56 per cent increase and a 4.39 per cent increase over the August average sale price of $276,536.

"With absorption inventories now exceeding three months supply we have, for the time being, left the booming market far behind," says CREB President, Kevin Clark. "Sellers needing to sell in 2006 should consult carefully with their REALTOR to price their property competitively for a successful sale. Buyers, on the other hand, would probably be wise not to become too cavalier about this temporary situation, because they may once again pay more next year."

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas. The median price is determined by selecting the middle number of total sale prices - the combined residential median price for September 2006 was $333,000; up 48.99 per cent from September 2005, when the median price was $223,500 and up 1.52 per cent from the median price in August of $328,000.

NEW RECORD FOR CALGARY BUILDERS

Calgary builders are expected to construct more new homes this year than ever, eclipsing the record set almost 30 years ago. Numbers released Tuesday by Canada Mortgage and Housing show the pace of construction activity in the Calgary housing market is at a fever pitch right now with total housing starts for this year's first six months 41.3% higher than the first half of 2005.

Also on Tuesday, Statistics Canada reported Calgary continued to lead the way in the New Housing Price Index with a monthly increase in May of 5.4% from April. Compared to a year ago, Calgary, at 41.3%, had the highest increase for new homes. In contrast, the national average price growth in the past year was 9.1%. The federal agency cited "high demand for new housing, higher material and labour costs and increased land values" as factors in the price increases as well as "high fuel costs," which affected transportation costs.

Canada Mortgage and Housing said the country is now on pace for more than 232,000 starts, the highest level since 1987. Despite that pace, predictions from CMHC were that housing construction is set to cool.

"Even with the strong showing in June, housing starts ended the second quarter more than 9% below their first-quarter level. The bellwether single-detached component came in at its second-lowest level of the year, only marginally above its May level," said Bob Dugan, chief economist with CMHC. "We expect the level of activity to moderate in the second half of 2006 as rising prices and marginally higher mortgage rates result in a softening of demand for both existing and new homes."

The prediction of a "soft landing" for Canadian real estate has become a common theme in most economic commentary. "We expect the gentle downtrend to carry on the rest of the year," said Sebastien Lavoie, an economist with TD Bank Financial Group.

MLS sales continued to show a steady and strong pace in the month of June, while new listings hit an all time high, according to figures released by the Calgary Real Estate Board.

June combined residential sales totaled 3,388, the highest June on record, showing an 8.59 per cent increase over June 2005 when the sales were recorded as 3,120 and showing a decrease of 4.56 per cent from last months high of 3,550. The breakdown of the June combined sales was, 2,354 single-family residences, 1,011 condominium, and 23 mobile homes. June 2005 sales in the same categories were, 2,228; 880; and 12, respectively.

The average combined residential sale price for June 2006 was $367,033, the highest sale price on MLS record, showing a 49.32 per cent increase over June 2005, when the average price was $245,809, and a 2.46 per cent increase over May 2006's average price of $358,214. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of June 2006 over 2005:

• Single-family $408,771 / $270,905;
• Condominium $276,955 / $185,149; and
• Mobile home $54,861 / $34,817.

June 2006 residential combined listings totaled 4,555, the highest ever in MLS history. This is a 24.76 per cent increase from June 2005, when 3,651 listings came to market and showing a 10.10 per cent increase over the 4,137 homes listed in May.

Condominium sales also kept a steady pace with 1,011 sales changing hands. Sales for condominiums for the same period last year were 880 showing a 14.89 per cent increase. The average condominium price in June 2006 was $276,955, the highest ever in MLS history, compared to the $185,149 in June 2005; a 49.58 per cent increase and a 2.25 per cent increase over the May average price of $270,861.

"We knew unit sales per week would peak sometime before summer; now we know it occurred in the first week of June" reported CREB President, Kevin Clark. He went on to say that Calgary REALTORS are still very busy with both Buyers and Sellers seeking their advice on current trends.

"The next couple of months may prove to offer the best selection of the year with more listings and a few less buyers but the fall market? - it's still unpredictable."

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas. The median price is determined by selecting the middle number of total sale prices - the combined residential median price for June 2006 was $334,500; up 52.06 per cent from June 2005, when the median price was $220,000 and up 2.92 per cent from the median price in May of $325,000.

June Archive

MLS sales continued to show a steady and strong pace in the month of April, while average prices hit an all time high, according to figures released by the Calgary Real Estate Board.

April combined residential sales totaled 3,389, the highest April on record, showing a 5.68 per cent increase over April 2005, when the sales were recorded as 3,207 and showing a very slight decrease of 3.09 per cent from last months all time high of 3,497. The breakdown of the April combined sales was, 2,445 single-family residences, 922 condominium, and 22 mobile homes. April 2005 sales in the same categories were, 2,351; 842; and 14, respectively.

The average combined residential sale price for April 2006 was $341,838, the highest sale price on MLS record, showing a 37.18 per cent increase over April 2005, when the average price was $249,195, and a 5.03 per cent increase over March 2006's average price of $325,481. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of April 2006 over 2005:

• Single-Family $376,725 / $273,953;
• Condominium $256,455 / $183,541; and
• Mobile Home $42,968 / $40,157.

Condominium sales also kept a steady pace with 922 sales changing hands. Sales for condominiums for the same period last year were 842 showing a 9.50 per cent increase. The average condominium price in April 2006 was $256,455, the highest ever in MLS history, compared to the $183,541 in April 2005; a 39.73 per cent increase and an 8.93 per cent increase over the March average price of $235,427.

April 2006 residential combined listings totaled 3,572, a 15.42 per cent decrease from April 2005, when 4,223 listings came to market and showing a 9.55 per cent decrease over the 3,949 homes listed in March.

"The April sales numbers confirm our anticipated gradual stabilization in the spring real estate market", reported CREB President, Kevin Clark. "Unit sales in April were down slightly from March but with 374 sales over $500,000 the average sale price has again increased to an all time high", he continued. "Markets rarely stay on a straight line course and this one is no different", warned Clark, "Talk with your REALTOR about market changes, the significance of right pricing and preparation - it is going to be important as we head into summer".

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas. The median price is determined by selecting the middle number of total sale prices - the combined residential median price for April 2006 was $312,000; up 41.05 per cent from April 2005, when the median price was $221,200 and up 9.47 per cent from the median price in March of $285,000.

MLS sales broke all time records in the month of March 2006, according to figures released by the Calgary Real Estate Board.

March combined residential sales totaled their highest ever at 3,497, an 18.1 per cent increase over March 2005's sales of 2,962, and a 14.3 per cent increase over February 2006's sales of 3,060. The breakdown of the March combined sales was, 2,486 single-family residences, 995 condominium, and 16 mobile homes.

The average combined residential sale price for March 2006 was $325,481 a 30 per cent increase over March 2005, when the average price was $250,360, and a 6.9 per cent increase over February 2006's average price of $304,560. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of March 2006 over 2005.

• Single-Family $363,370 / $276,808;
• Condominium $235,427 / $181,037; and
• Mobile Home $38,650 / $41,094.

Condominium sales also broke all time MLS sales records with 995 sales changing hands. The average condominium price in March 2006 was $235,427 compared to the $181,037 in March 2005; a 30 per cent increase and an 8.4 per cent increase over February's average price of $217,181.

March 2006 residential combined listings totaled 3,949, a 5.1 per cent decrease from March 2005, when 4,163 listings came to market but showing a 22.3 per cent increase over February's 3,230 listings.

"The incredible sales level of the first quarter is a graphic demonstration of the professional capability of Calgary REALTORS, showing their ability to provide purchasing opportunities for such a high number of Calgarians, under challenging circumstances", remarked CREB President, Kevin Clark. "Only our members of the Calgary Real Estate Board have full access to the Multiple Listing Service (MLS); a very powerful service providing sellers the broadest possible exposure of their real estate and buyers the widest opportunity of accurate and up to date real estate information", continued Clark.

Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas. The median price is determined by selecting the middle number of total sale prices - the combined residential median price for March 2006 was $285,000; up 29.6 per cent from March 2005, when the median price was $220,000 and up 6.4 per cent from February's median of $267,900.

'Crazy' Market Kicks Homes Past $360,000 - Single family house prices 31% higher than last year

Calgary's frenzied housing market hit new territory in March, with prices accelerating and records set across the board, including a $363,370 average price for single-family homes -- 31 per cent higher than a year ago.

"The market is crazy and it's hard to predict where all this is going. I see no end to it," Shanta Knight, a realtor with Re/Max Real Estate, said Wednesday. She said many homes for sale attract multiple offers and sell above the asking price. "If you're not in the market, I suggest you try and get into the market," said Knight. "Calgary is getting in line with Vancouver and Toronto."

The combined average price for a home in Calgary leapt nearly seven per cent in March, hitting $325,481, while the combined median price -- the level where equal numbers of homes were sold above and below the figure -- climbed 6.4 per cent to $285,000.

March's combined price was a stunning 30 per cent higher than a year earlier, while the median rose 29.6 per cent in the same time frame.

Still, there are deals to be had, said Brad Downey, a Halifax transplant who with his girlfriend has just purchased a home in Martindale. "You have to act really quick. We ended up getting a good deal, below market price, and that's pretty rare," said Downey. "I think the market inflation is beyond what the average person can afford. I don't think it can sustain itself."

However, analysts don't believe Calgary is in a real estate bubble, which, like its namesake, can burst at any time. "Housing affordability has not deteriorated by much in Alberta, suggesting that the recent ascent of house prices can be more fundamentally supported," said TD Financial Group economist Craig Alexander.

Marla Nystrom-Smith and her husband recently upgraded from a townhouse in Citadel to a detached home in Evanston. Their townhouse sold in less than two days at more than $10,000 above the list price -- which they'd raised significantly just before listing. "Our heads were spinning. We were so in shock," said Nystrom-Smith. Finding the right new home required they be flexible on location and other factors, and be ready to deal, she said. "If you want to find a home this year in Calgary, you can't be too picky. I got most things that I wanted, but that was just luck."

The story has been told countless times - older houses in prestigious neighbourhoods bought for their land are bulldozed and replaced by million-dollar-plus homes. But the infectious itch to live close to the downtown core in Calgary's more established neighbourhoods is spreading.

We all know about Mount Royal, Elbow Park and Bel Aire but this kind of thing is happening more and more in other neighbourhoods like West Hillhurst, Altadore and Renfrew - homes can sometimes sell for more than $500,000 only to be flattened for the location. People want the feel, the amenities and the access offered by established neighbourhoods with a bit of character. The itch is spreading, more quickly now than ever.

A cooling housing market will lead to a slowdown in the California economy beginning later this year, predicts a UCLA Anderson Forecast to be released today.

Although there is no evidence of a recession, economist say since nearly one fourth of all new payroll jobs in the last two years have been construction jobs, a slowing housing market will reduce payroll employment growth to just 1.5 per cent this year and 1 per cent next year - down from 1.8 percent in 2005.

Another forecast by the University of the Pacific in Stockton, which will also be released today, isn't quite so pessimistic. It forecasts a cooling housing market but suggests that growth in other sectors will pick up the slack.

"We've argued against a housing bubble," says Sean Snaith of the UP forecasting center. "We see it more as a souffle that will go flat."

- The Los Angeles Times, Annette Haddad

Another strong month for MLS sales for the month of February 2006 was recorded, according to figures released by the Calgary Real Estate Board.

February combined residential sales totaled 3,060, a 37.7 per cent increase over February 2005's sales of 2,223, and a 27.1 per cent increase over January 2006's sales of 2,408. The breakdown of the February combined sales was, 2,149 single-family residences, 905 condominium, and 6 mobile homes. February 2005 sales in the same categories were, 1,631; 584; and 8, respectively.

The average combined residential sale price for February 2006 was $304,560 a 26 per cent increase over February 2005, when the average price was $241,753, and a 5.3 per cent increase over January 2006's average price of $289,130. Broken out, the following is a comparison of single-family, condominium, and mobile home average sale prices for the month of February 2006 over 2005: