Calgary Housing Market Correction
Calgary Real Estate Market for September 2010
City sales are down while country sales hold steady...
Sales in the city of Calgary continued to trend lower in the month of August, according to the latest figures released by the Calgary Real Estate Board. August 2010 saw 867 single family homes sold in the city of Calgary. This is a decrease of 5% from 915 sales in July 2010. In August 2009, single family homes sales totalled 1,277.
Condo sales in August 2010 were also down from 396 in July 2010 to 364, a drop of 8%. In August 2009, condo sales were 632.
"Calgary's housing market has been undergoing a measured correction over the past 4 to 5 months. Sales are trending lower as a result of a decrease in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery," says Diane Scott, presided of the Calgary Real Estate Board. "There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgarians."
"What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer's market. A slower than anticipated pace of mortgage rate hikes and continued improvements in employment are more likely to bring stability rather than volatility into Calgary's housing market as we move into 2011," adds Scott.
The average price of a single family home in the city of Calgary in August 2010 was $445,617, showing a 4% decrease from July 2010, when the average price was $454,130. The average price of a Calgary condo was $286,384 showing a 2% decrease respectively, when the average price was $291,168.
"We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011," say Scott. "Homebuyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region. A case in point is the relative strength of Calgary's town and country market, where sales have remained at 2009 levels."
"Homebuyers and sellers should speak to their Realtor to better understand the opportunities in our current market," says Scott. "Total month end inventory for the wider Calgary region is down marginally when compared to July - a trend we expect will continue in the coming months. New listings are also likely to recede in the coming months in response to slowing sales."