According to figures released today by CREB® (Calgary Real Estate Board), Calgary residential sales in November increased eight per cent over last year, at 17,538 after the first 11 months of the year.
While sales activity tends to taper off in the winter months, so far this year Calgary area sales remain significantly stronger than levels recorded last year. Single family home sales totaled 962 for the month, an increase of eight per cent from November 2010. Meanwhile, year-to-date sales totaled 12,464, a 10 per cent increase over last year. Over the long term, however, sales remained a tepid 17 per cent below the 10 year average.
“Despite any global economic cautions, consumers are actively seeking well priced listings in the market, a reflection of their positive long term outlook for the city,” says Sano Stante, president of CREB®. “Following two years of employment losses, the current growth in jobs is translating into improvements in the housing sector and a more optimistic consumer.” Many companies in the oil patch are reporting significant new hiring, which will eventually show up in the way of housing demand.
November listings have edged down over last year’s levels, decreasing by two per cent. Lower listings combined with the increase in sales helped reduce the months of inventory to less than four months.
The year-to-date average and median price of single family homes were a respective $467,140 and $406,500. Overall, prices remain relatively flat compared to last year.
“This stable pricing provides an opportunity for buyers in our market. The addition of historically low interest rates, combined with a good selection of inventory, makes it a trifecta,” Stante says. “With positive wage growth in the wind, this is a signal, and a reminder, that this market opportunity will not remain forever.”
Condominium sales for the first 11 months of the year totaled 5,074, a five per cent rise over the same period last year. Inventory levels declined to 1,676 units, helping push down the months of supply.
“The rise in condominium sales can be attributed to the confidence in the market, and is typical of this phase of a normal market recovery,” says Stante.
Condominium year-to-date average and median prices in 2011 were $287,545 and $261,500, respectively, a decline over the first 11 months of 2010, mostly due to increased sales in units priced under $200,000.
“Calgary continues to record impressive employment growth and long term fundamentals remain strong,” Stante concludes. “The strength in our economy, combined with affordability levels that outperform most major centers, will continue to attract migrants to the city and spur further growth in our Calgary housing market.”
If you’re thinking that 2012 is finally the time to peek out from the bunker you’ve been hiding in due to all the scary news, or perhaps if you have finally established enough equity from the 2006-07 markets, give me a call. I’d love to share more insights into the current market as it applies to your goals. The time to discuss it is in the first quarter, when buying opportunities are good, and you have some time to prepare your home for the more active spring market.
Selling a home in the winter (a Canadian winter, not the snowbird winter we dream of) is a very good strategy, and better statistically than most consumers know. A study done in 2009/2010 showed that the the price, days on the market, and selling percentage to list price was all better than the median average for the entire year, when comparing winter sales to the rest of the year. One of those factors is the number of new listings, which tends to peak in the Calgary market in April and May. January and February is somehow seen as a less attractive time to list, but the truth is, you have less competition, and the buyers that are looking are actually serious buyers. After all, who would go out in the snow and below zero temperatures if they weren’t serious about moving? Here are 7 tips to selling your home in the winter successfully: Read the rest of this entry »
Inventory in both single family and condos are lower, creating stability for sellers, while still allowing buyers a good selection of homes and condos to choose from. Real estate is a ‘get rich slow’ proposition, so buying at a time when interest rates are still very low, and selection is good just makes economic sense. Add in the recent and it would seem, chronic, volatility of equity markets, and putting your money where you live, (or where someone else needs to live), is an attractive investing option.
