Calgary MLS® Report - Tuesday March 2, 2010 - Real Estate Sales Strong for Calgary in February

Real estate sales and average sales prices for February in Calgary grew significantly versus last year.  March 1 statistics from Calgary Real Estate Board indicate a 25 5 percent increase in the sales of single-family homes over 2009, to 1,035 residences.  The average selling price for a single-family dwelling, $458,254, grew 10.27 percent over last year’s average of $415,568.

Sales of condominiums took off last month, increasing an astounding 56.3 percent to 536 homes as opposed to only 343 residences a year ago.  The average condo sales price grew by 5.17 percent, to $282,880 versus $269,971.  CREB President Diane Scott said that homebuyers in Calgary are already preparing for the spring real estate market, noting that sales have gone from very weak to strong in a little more than a year.  Scott predicts vitality in the spring of 2010, as buyers attempt to take advantage of low interest rates before the government raises them.  

Scott noted that the market is experiencing more small increase in the number of multiple bids on some properties.  She discounted any talk of a housing bubble in Calgary, saying that the market is more balanced than many others in Canada.  Scott projects that both demand and inventory will increase in the next few months.  She expects prices to grow modestly during the year.  

Listings grew in key areas during February: Those for single-family homes rose by 4.7 percent, to 2,154.  Condo listings increased a significant 24.3 percent over last year.  Scott attributed some of the heightened listing activity to the status of interest rates, saying that people want to market their homes for sale before the Bank of Canada inevitably raises rates to prevent inflation.

Sales in towns surrounding Calgary rose to 335 residences, a jump of 55.8 percent over last year’s total of 215.  However, the average sales price did not keep a proportionate pace, as it declined by 4.8 percent to only $353,912.  In terms of rural real estate, sales grew a huge 84.4 percent in February to 59 versus 32 in the same month of 2009.

Calgary MLS® Report - Monday February 15, 2010 - Calgary's Solid Housing Market

The number of home sales and the average price at which the sales are executed continue to rise in Calgary.  According to the data and figures released in early February by the Calgary Real Estate Board, the pace of sales has slowed just slightly.

One official said that the market is expected to continue its modest recovery, helped by affordable prices for housing in Calgary.  The real estate market continues to make dramatic year-on-year increases with regards to sales figures.

Many participants in the housing market believe that the Bank of Canada will begin to raise interest in the summer of 2010, as more solid signs of an economic recovery are seen.  Economists at BMO think that the government must lift relaxed policy rates and the general cost of credit from the extreme lows that have been available to help economic recovery.

Either of these two actions could put a serious damper on the home sales in late 2010, but buyers looking to lock in record-low interest rates may scramble to buy homes in the months to come.  Forecasts see job creation and migration of workers into the Calgary area, potentially driving the demand for housing through 2010.  Even the average price of a condo is up four percent from the same period a year ago.

Calgary MLS® Report - Friday February 5, 2010 - Albertans Want to Go Green and Want a New Building Code to Prove It

Albertans are very interesting in going green.  A recent survey revealed that 87 percent of those asked were supportive of the government revamping the energy efficiency requirements for the construction of new homes.  59 percent of those surveyed considered saving energy very important and 37 percent thought it important.

That may seem odd coming from an energy rich province that makes money by supplying that energy to a number of clients, but Albertans know a good thing when they see it. There is an overwhelming understanding that energy resources are finite and that finding alternative and/or efficient ways to heat homes and power those appliances is not only admirable, but necessary.

Alberta’s current EnerGuide rating of new homes is 71.  That is below Canada’s national average of 76.  British Columbia’s rating is 77 and Ontario ranges from 78 to 80.  Almost 87 percent of Albertans support a revamping of the building code to insure that Alberta becomes more energy efficient.

Most Albertans are also aware that creating more energy efficient homes can also save them money.  Installing energy efficient appliances, low flow toilets, even low watt light bulbs can all bring down monthly energy bills. If Alberta’s building code matched those of other provinces with higher energy efficiency standards, new home owners could see a savings of up to $625 a year.

Calgary MLS® Report - Tuesday January 26, 2010 - Economists See Modest Growth

Over the past two years, the real estate market in Calgary has been less than stable.   The prices were high then they crashed.  Now, after many people believed prices cold continue to worsen, they have rebounded back to levels near the highs seen in 2007.

The president of the Calgary Real Estate Board says that the low interest rates, combined with the affordable prices, will continue to drive solid demand and create modest growth.  Most economists agree with the prediction that the gradual recovery will grind to a halt and cause a decrease in housing prices over the course of 2010.

Many in the region believe that the recovery will be linked into oil and gas demand, saying that the real estate markets in Calgary and Alberta will depend greatly on the amount of employment migration to the area.

In 2007, there were over 18,400 home sales for single-family homes.  This year, the Calgary Real Estate Board predicts upwards of 17,000 home sales for single family homes, but they do not believe the 2010 figures will match 2007.

The board has projected an optimistic outlook, with prices rising by an average of 3.2%.  They also expect a fourteen percent increase in the number of home sales across Calgary in 2010.  Although, they say it wont be a seller's market until 2011.

Calgary MLS® Report - Monday January 18, 2010 - Canada Is Recovering From the Economic Downturn Much Faster Than Our Southern Neighbour

Canada’s real estate market is doing surprisingly well.  It has in fact, exceeded expectation to such a degree that some economists are concerned that a housing bubble is in danger of forming.  Though the Bank of Canada is currently not concerned, the debate continues.

Housing prices have increased across the nation by an average of 19 percent comparing end of year 2009 with the dismal numbers of 2008.  Some economists are worried that since income levels are increasing at only a fraction of those numbers, houses will soon become unaffordable.  Add to that the expected increase in interest rates in the later part of 2010 and the worry increases.

It is possible that the affordability issue in the real estate market will self correct.  Due to the increased demand for housing, new construction may step in to supplement available inventory.  Mortgage lenders could tighten their rules and regulations. The increase in interest rates as well as the arrival of real estate tax bills, particularly in British Columbia and Ontario where those bills are expected to be perhaps an unpleasant surprise may also help cool the market enough that a housing bubble may not form at all.

Though Canada did go through a rough patch in its real estate industry, tighter lending rules and the relative scarcity of sub prime loans approved kept our financial market relatively healthy.  We did not go through the free fall that other countries such as the Ireland, Britain and the United States experienced.  Our lending laws may be looked upon as being stodgy, but in this case being overly cautious kept Canada’s financial system from plunging into the same abyss as our southern neighbour.

Calgary MLS® Report - Monday January 11, 2010 - Calgary Home Sales Trend Strong into Year End

Preliminary statistics show that the number of home resales in Calgary during December will easily beat the figures from last year, but it is still uncertain if the figures will meet the 2007 levels of sales.

The most recent figures show that there have been 774 single-family homes sold in December 2009 compared to just 449 in December 2008.  In December 2007, the market saw over 840 home sales.  Official figures will be released by the Calgary Real Estate Board during the first week in January

The preliminary figures also show that substantially more condos have been sold during December 2009 than in the previous year.  Local realtor, Gary LacLean, says that month-over-month figures for home sales have been stagnant, which makes it difficult to really gauge the market.

The biggest uncertainty for 2010 is ’Will there be more buyers?’  Also, another huge factor is the large amount of sellers who took their homes off the market due to the inability to sell the property.  Will these sellers return to market?  If there is a heavy influx of supply and no new demand, prices could get ugly for home owners.

In 2008, MLS data showed year-end figures that were the lowest since 1996, with the average price of a home dropping more than 25%.  Condo prices were even worse, falling an average of thirty percent through 2008.