CALGARY - The Calgary Real Estate Board says the city's housing market has clearly turned a corner after October MLS sales rose to lofty levels.
Sales in both the single-family and condo markets are up from year-ago levels, even higher than October 2007 levels. And the average MLS sales price in the single-family market has also increased from a year ago.
"The local resale market is performing very well," said Rachelle Starnes with Royal LePage Foothills.
A year ago, she said, the Canadian and Alberta economies were going into a tailspin.
"We now have oil and gas showing signs of improvement, interest rates are at a record low and retail spending is back up in most sectors. Buyers are more confident that the economy has stabilized and the uncertainty has subsided," said Starnes, adding that a shortage of listings and improving employment are factors in the market.
The October average MLS sales price of $462,465 for single-family homes is the highest on record and has risen by nearly $180,000 since October 2005.The average condo sale price during the month was $289,155 and that's up by more than $101,000 from October 2005.
"We expect there to be a few bumps on this road to recovery, but we believe the worst is over," said Bonnie Wegerich, CREB president, as the board officially released on Monday its data for the previous month. "Home prices have held firm and edged upwards in some markets over the past months. This has helped buoy up the confidence of both buyers and sellers."
The average price of a single-family home in October of $462,465 represented an increase of one per cent from September and a three per cent increase from October 2008.
The average price of a Calgary condominium was $289,155, no significant change from September when the average price was $290,253, and no significant change over last year when the average price was $289,148.
"Move-up buyers have clearly entered the market," said Wegerich. "This is reflected in the average price for a single-family home cresting just above $462,000 --historically the highest it has ever been in the month of October."
October saw 1,285 single family homes sold -- an increase of 57 per cent from October 2008 when single-family home sales were 820. The number of condominium sales for the month of October was 601, an increase of 51 per cent from October 2008 when 399 condominiums changed hands.
"In the last couple of months, we did see an impressive number of sales mainly driven by recent affordability improvements," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. "Looking into 2010, we do expect the sales to increase but at a more modest pace. Sales will be less driven by the recent affordability improvements and move more in line with some of primary drivers of housing demand such as employment and income growth as well as household formation.
"I think recently people have been benefiting from the lower carrying costs and so with the improvements in affordability, that has given many buyers opportunity to jump into the home ownership market."
Wegerich said consumer confidence has helped fuel this rebound.
"It seems for many potential homebuyers it was global-wide uncertainty rather than personal financial circumstances that was holding them back from making a home purchase," Wegerich said. "Many of these buyers are now facing improved affordability, and lower mortgage rates than prior to the recession -- together these created a tipping point for market recovery."
She said the upsurge in sales over the past few months represents a release in pent-up demand that built up from the last quarter of 2008 and the first quarter of 2009.
"We do expect this recovery to be a gradual one and for sales to taper off in the winter months as this pent-up demand eases," she said.
mtoneguzzi@theherald.canwest.com
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October MLS Sales For Calgary
DATE SINGLE-SINGLE-CONDO CONDO FAMILY FAMILY SALES PRICE SALES PRICE
OCT. 2009 1,285 $462,465 601 $289,155
OCT. 2008 820 $449,100 399 $289,148
OCT. 2007 1,113 $452,254 501 $331,617
OCT. 2006 1,492 $413,712 619 $283,888
OCT. 2005 1,806 $284,206 760 $187,661
Source: Calgary Real Estate Board
© Copyright (c) The Calgary Herald
Sales in both the single-family and condo markets are up from year-ago levels, even higher than October 2007 levels. And the average MLS sales price in the single-family market has also increased from a year ago.
"The local resale market is performing very well," said Rachelle Starnes with Royal LePage Foothills.
A year ago, she said, the Canadian and Alberta economies were going into a tailspin.
"We now have oil and gas showing signs of improvement, interest rates are at a record low and retail spending is back up in most sectors. Buyers are more confident that the economy has stabilized and the uncertainty has subsided," said Starnes, adding that a shortage of listings and improving employment are factors in the market.
The October average MLS sales price of $462,465 for single-family homes is the highest on record and has risen by nearly $180,000 since October 2005.The average condo sale price during the month was $289,155 and that's up by more than $101,000 from October 2005.
"We expect there to be a few bumps on this road to recovery, but we believe the worst is over," said Bonnie Wegerich, CREB president, as the board officially released on Monday its data for the previous month. "Home prices have held firm and edged upwards in some markets over the past months. This has helped buoy up the confidence of both buyers and sellers."
The average price of a single-family home in October of $462,465 represented an increase of one per cent from September and a three per cent increase from October 2008.
The average price of a Calgary condominium was $289,155, no significant change from September when the average price was $290,253, and no significant change over last year when the average price was $289,148.
"Move-up buyers have clearly entered the market," said Wegerich. "This is reflected in the average price for a single-family home cresting just above $462,000 --historically the highest it has ever been in the month of October."
October saw 1,285 single family homes sold -- an increase of 57 per cent from October 2008 when single-family home sales were 820. The number of condominium sales for the month of October was 601, an increase of 51 per cent from October 2008 when 399 condominiums changed hands.
"In the last couple of months, we did see an impressive number of sales mainly driven by recent affordability improvements," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. "Looking into 2010, we do expect the sales to increase but at a more modest pace. Sales will be less driven by the recent affordability improvements and move more in line with some of primary drivers of housing demand such as employment and income growth as well as household formation.
"I think recently people have been benefiting from the lower carrying costs and so with the improvements in affordability, that has given many buyers opportunity to jump into the home ownership market."
Wegerich said consumer confidence has helped fuel this rebound.
"It seems for many potential homebuyers it was global-wide uncertainty rather than personal financial circumstances that was holding them back from making a home purchase," Wegerich said. "Many of these buyers are now facing improved affordability, and lower mortgage rates than prior to the recession -- together these created a tipping point for market recovery."
She said the upsurge in sales over the past few months represents a release in pent-up demand that built up from the last quarter of 2008 and the first quarter of 2009.
"We do expect this recovery to be a gradual one and for sales to taper off in the winter months as this pent-up demand eases," she said.
mtoneguzzi@theherald.canwest.com
---------
October MLS Sales For Calgary
DATE SINGLE-SINGLE-CONDO CONDO FAMILY FAMILY SALES PRICE SALES PRICE
OCT. 2009 1,285 $462,465 601 $289,155
OCT. 2008 820 $449,100 399 $289,148
OCT. 2007 1,113 $452,254 501 $331,617
OCT. 2006 1,492 $413,712 619 $283,888
OCT. 2005 1,806 $284,206 760 $187,661
Source: Calgary Real Estate Board
© Copyright (c) The Calgary Herald
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