Calgary, July 3, 2012 – Residential sales in the City of Calgary totaled 11,752 for the first half of this year, a 16-per-cent increase over the same period last year. The rise in sales has brought activity levels closer to long-term trends in the city.

“Recent mortgage rule changes may dampen some of the gains in the resale market,” says Ann-Marie Lurie, CREB®’s chief economist. “But this is not expected to cause a full reversal of either sales or price growth, provided the global economic situation does not significantly worsen.

“Our housing market is returning to normal levels of activity, supported by the improvements in our employment sector and rise in migration.”

Single family monthly sales reached 1,609 units in June, a decline over the previous month, but 16 per cent higher than levels recorded in June 2011. However, new listings are declining as consumers appear to delay putting units on the market until they see further price recovery. Despite the decline, with a current inventory of 3,817, the supply constraint has eased and the single family market is moving towards more balanced levels.

“Overall, the Calgary market is trending towards long-term stability,” says Bob Jablonski, president of CREB®. “Activity levels are consistent with our expectations, and are not demonstrating an overheated market. We’ve seen a slight lack of supply in single-family homes, but this is not the case in the broader residential market, including surrounding towns.”

The single-family benchmark price for the month of June 2012 was $430,800, a 7.3-per-cent increase over the previous year. Year-over-year price increases have been particularly strong in the recent months, in part due to the decline in months of supply. As the city moves towards balance, we can expect price growth to ease in following months.

“Homebuyers are confident about the long-term prospects in our city, and continue to search for homes in those communities that align with their needs,” Jablonski says. “People who are in the market to buy right now have to make their decisions quicker, but they are well informed and they continue to seek out value for their money.”

While June sales activity showed a modest improvement over last year, year-to-date condominium apartment sales totaled 1,858, a 7-per-cent increase over the first half of 2011. Both monthly and year-to-date sales remain consistent with long-term trends. The rise in sales over the first half of the year combined with a decline in listings helped reduce the excess supply. With supply hovering just above three months, the condominium apartment market remains in balance.

The condominium-apartment market recorded a modest improvement in pricing, with a benchmark price of $246,300 in June 2012, a year-over-year price gain of 1.5 per cent. The condominium-townhome benchmark price grew by 3.3 per cent over 2011, and is now $278,000.

“Recent reports have mentioned an overvalued Canadian housing market, and it is important to note that the Calgary market has already recorded a correction,” says Lurie, who notes benchmark prices in the entire CREB® residential market remain 8 per cent below peak levels. “Alberta was slow to recover from the recession, but this year our province is expected to lead the country in economic growth. This growth will continue to support gains in full-time employment and encourage positive momentum in our local housing market by way of both demand and price recovery,” Lurie concludes.

About CREB®

CREB® is a professional body of more than 5,100 licensed brokers and registered associates, representing 242 member offices. CREB® is dedicated to enhancing the value, integrity and expertise of its REALTOR® members. Our REALTORS® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and standards of business practice.

From CREB housing sales are looking good…. Sales activity on the rise throughout the Calgary region

Improved activity in the last week of the month boosted city sales

Calgary, March 1, 2012 – Sales activity improved across all residential sectors this month compared to a year ago, according to CREB® data released today. Calgary and area sales growth pushed February total residential activity up by 11.6 per cent compared February 2011, mainly due to increased activity in the surrounding towns.

“City sales were boosted by a lot of activity in the last week of the month,” says Bob Jablonski, CREB® president. “This points towards the improvements that we expect to see in our spring market activity.”

Single family sales and condominium townhouse sales were the bright lights in the city of Calgary, while condo apartments continue to lag in volume of sales. There were 1,284 single-family homes sold in February 2012, a 10.9-per-cent increase over last-year figures, and a 5.6-per-cent year-to-date increase. Condo townhouses gained 11.4 per cent year-over-year in February sales.

“More selection and a wider range of prices have drawn consumers to the condominium townhouse and single family markets,” says Jablonski. “As is the case with all property types, we saw modest price improvements compared to February last year, but overall levels remain below peak pricing.”

Meanwhile, condominium apartment sales totaled 248 for February 2012, an 11.7-per-cent decline over last-year figures. Despite the 12.7-per-cent year-over-year decline in new listings, inventory levels rose to 1,031 units.

Fewer new city listings are coming to the market, with a year-over-year decline of 10.2 per cent. Inventories also fell by 8.5 per cent over last year’s figures, with a total inventory of 4,736 for the month. The opposite is true in the surrounding towns, where listings recorded a year-over-year improvement of 12.1 per cent and no significant change in inventories.

“The lack of new listings in the city compared to the surrounding towns provides insight into the improved activity in the surrounding areas, as those who are actively seeking a home in the surrounding towns are not limited in their choice by lack of new listings in the market,” Jablonski says.

Within the city of Calgary, the decline in new listings, combined with improving sales, contributed to reduced inventory levels, pushing absorption rates for single-family and condominium townhome markets into balanced territory. However, the condominium apartment inventories rose and sales activity weakened, keeping the market in buyer’s territory.

Pricing showed modest improvement in February 2012 over January, with the single-family MLS® Home Price Index increasing by 1.0 per cent after several months of relatively flat pricing. Single-family prices rose by 3.2 per cent over February 2011. While prices continue to remain below peak levels, the improvement points to stable price growth.

The apartment index rose by 2.1 per cent over January figures, and increased by 0.7 per cent over last year’s levels. Prices remain well below peak levels, but are trending into positive territory, pointing towards recovery in this market. Overall index levels for townhomes remain similar to levels recorded in January 2012.

“While the apartment market continues to lag the other sectors in the city, the balanced conditions in the total city market point towards stable pricing,” says Jablonski. “There do appear to be some positive headwinds. Following several months of decline, prices appear to have stabilized lately and recorded some modest gains in February,” Jablonski concludes.

Despite the variances in the specific property types, all indicators in the Calgary region continue to point towards stable growth in Calgary’s overall housing sector.

Multiple offers on one of our latest listings. Calgary Real Estate is heating up.

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