Did the Calgary Real Estate Market go Up or Down?

Are Values Increasing or Decreasing in Calgary?

I was reading through the Calgary Real Estate Boards stats and reports from September 2010 and noticed something very interesting…

The report said the following:

The average price of a single family home in the city of Calgary in September 2010 was $460,278, showing a 3 per cent increase from August 2010, when the average price was $445,617 all the while, the median price of a single family home in the city of Calgary for September 2010 was $390,000, showing a 1 per cent decrease from August 2010 when the median price was 395,000.

How is it possible that the market can go up and down at the same time… Let’s dig into this and understand why it’s important to go look at the median prices versus the average prices.

In the month of August there were a total of 25 properties that sold over the $1 Million mark.  Considering August was a slow month, this is great… Out of those 25 homes there were only 2 properties that were above the $2 Million price point, $2.3 Mill and $2.6 Mill.

In the month of September 2010 there were a total of 34 properties over the $1 Million mark.  This is a big jump from August.  Along with the increased number of transactions, the price point was also much higher… There were 4 transactions that were in the $2 Million price point along with one that sold for $3.5 Million.

So, when the report said that the prices in Calgary went up and the media reported the same,  Calgarians were lead to believe that the real estate market in Calgary was on the upswing.  When in reality and when you pull back the curtain, you will see that the prices in Calgary actually declined from the month before.  The median of a range of numbers is determined by ordering all numbers from beginning to end and picking the middle one, or in the case of real estate, the sale prices for that month.  On the other hand, the average sale price, where you’d add all the numbers up (or sale prices) and divide by number of sales, gives us the average price.

When you use the median to look at the real estate market values in Calgary, this will take out the super high values and the low values and give us a true indication of what has happened.

So, in saying all this… Did the market go up or down?  What do you think?

Jared & Rebecca

About The Chamberlain Group:
Jared and Rebecca Chamberlain are Calgary REALTORS® who are changing how real estate is done in Calgary by utilizing online marketing and advanced tools to sell your house in Calgary faster and for far more money. They would be honored to have the chance to work with you and earn your business. ____________________________________________________

Not Everyone’s Home Value is Increasing

I wanted to shed some light on what is happening in the market place. Some of you may have seen this Calgary Herald article today about the number of listings in Calgary are higher by 43.3% than last year. Now granted last year Calgary was in a strong recovery mode with the rest of the world. After what happened in fall of 2008, and the US banking and mortgage system imploding, we were all in recovery mode. So with this stat of the number of listings increased by 43% shouldn’t mean much right?

Let’s look at it this way. Last year over Christmas there was nearly 12 months worth of inventory on the market and in March, Calgary was down to just under 6 months. As of March this year, we are under 4 months. In Calgary, a balanced market is between 2.5 months and 4 months worth of inventory. This is called the absorption rate. Anything above 4 months is a buyers market and anything below 2.5 months is a sellers market. So currently we are in a balanced market in Calgary, however if your looking to buy a home in Calgary, then there is plenty to pick from.

So we have a lower absorption rate than last year in March, however we now have an increase of 43.3% of listings than this time last year. Reason that the absorption rate is still low and hovering around the top of a balanced market and what makes the big difference is that there are sales happening. Compared to March last year there is an increase of 27.3% in the number of completed sales.

So why would I say that not everyone’s home value is increasing?

With the increase in the new listings over the past month or so, this has created some crazy competition for certain price points in Calgary. These price points typically sold very quickly and for good value in the past. However with the flood of properties in these ranges, if your wanting or needing to sell your home in Calgary, you are needing to stand out from the crowded dance floor.

Thus, not everyone’s home value is increasing.

As well, this isn’t just happening in Calgary either…

March 2010 Real Estate Market Update

Jared Chamberlain video blogs about the market over the past couple of months. The median price for both single family homes and condos has increased over January 2010. If you have any comments or don’t care for Jared’s thoughts, please email him at jared@tcgroup.ca or visit http://www.ChamberlainGroup.ca

October 2009 Market Update

The Calgary housing market continued to rebound in October, according to figures released by the Calgary Real Estate Board.The number of single-family homes and condos sold in October were both up from the same time one year ago. October recorded 1285 single-family homes sold in Calgary, an increase of 57% from October 2008, and 2% higher than September this year. Condominium sales ( 601 units) increased by 51% compared to sales last year and were 4% over sales recorded in September this year.

“Calgary’s housing market has clearly turned a corner,” says Board President. “We expect there to be a few bumps on this road to recovery but we believe the worst is over. 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.”

Single-family new listings added for the month of October declined by 2% from September and were 22% fewer than new listings last October. Condominium units coming to market declined by 9% compared to September numbers this year and were 20% fewer than condo listings last year at this same time.

The median price of a single-family Calgary home was $410,000, showing a 3% increase over September and 5% higher than last October. The median sale price for condominiums registered at $263,900, down 1% from the month before and 2% below last October’s median.

Calgary Market Update – July 2008

Calgary residential sales in July increased over last year by 21%. Following a strong June market, July results were seasonally lower by 14% as people focused on summer-time activities.

1585 single-family properties sold in the month of July at an average price of $436,782, down by 2% compared to June’s average price. July’s median sale price was $390,000, a 5% decrease from the median price recorded last July. An equal number of properties sold above and below this median price. Listings of single-family properties declined by 7% compared to June’s new listings and were down a full 18% compared to last July.

In the condo market, 702 units found new owners this July, an increase over last year’s sales by 31%. 36 fewer units sold in July compared to June condo sales. The average sale price of a condominium ($285,032) was on par with June’s average price and declined 4% below the average sale price last year at this same time.

“We are continuing to see market improvement in Calgary home sales,” said the President of the Calgary Real Estate Board. “These are healthy sales numbers in a month when we typically expect a summer slowdown. Confidence has definitely returned to the housing market. Buyers’ moods have been buoyed by news that an economic recovery, albeit gradual, seems to be underway.”

February 2009 Real Estate Market Review

The real estate market has corrected back to the pace and possibilities of a market far more realistic than what we experienced over the past few years. Trends, however, continue to ebb and flow as always.

Not surprisingly, sales in February greatly increased over the previous few months. Listings, however, failed to keep pace in most Canadian markets. This indicator bears watching as speculators withdraw from the market, leaving serious buyers and sellers expressing true intention through negotiations and decisions.

Stats portraying national trends need to be thoughtfully considered. So-called national housing indexes such as the National Bank/Teranet House Price Index, include figures from only 6 Canadian cities. The real estate industry is local and Canadians are not a frivolous people.

January 2009 Market Update

Single-family property new listings offered to buyers in January 2009 were fewer than listings coming to market during the first month of 2008 by 31.6% while new listings of condo apartments and townhouses fell by 33.1% and 24.4% respectively.

Sales of Calgary single-family properties numbered 550 this January, 22% higher than sales activity in December. The median price of a single-family property in January 2009 recorded at $374,700, 8.6% below the median selling price last January of $410,000. The listings-to-sales ratio was 7.35:1 and the average days on market for properties selling in January 2009 was 62.

In the condominium market, 225 units found new owners during the first month of the New Year, up from the 205 condominium transactions that took place during the month of December. The median selling price of a condo unit in Calgary this January registered at $243,000, 16% below the median selling price recorded during the same month last year. The listings-to-sales ratio in this market segment was 8.55:1 and the average days on market for properties selling in January 2009 was 64.

148 townhouses changed hands this January with the median price of $320,000 a 7.17% decline from last year. The listings-to-sales ratio was 14.72:1 and the average number of days to sell was 81.

As month-over-month reveals what 2009 has in store for us, know that we’ll be here for you to keep you up-to-date on market activity. We’re committed to our long-term relationship and want all of our clients informed and confident with any decisions you make.

It takes many shaped pieces to complete a puzzle, so our information will vary. For the most part, we’ll compare month-over-month to help you see trends as they unfold.

If you or someone you know is thinking of buying or selling, call us early in the process. You’ll have needs specific only to you. The smallest pieces complete any puzzle and are the most satisfying to identify and solve.

Cheers!

November 2008 Market Update

An educated consumer, watchful of current market trends, still drives Calgary’s real estate market.

While November typical seasonal slowdown was magnified by the prevailing lack of overall consumer spending compared to one year ago, the changes in the listings-to-sales ratio demonstrates strategic thinking on the part of buyers and sellers alike.

Calgary single-family unit sales for the month of November totalled 670, 18.3% fewer sales than the month before while new listings added for this market segment dropped by 32.5% compared to the previous month’s report. The larger drop in new listings added results in fewer properties offered overall and indicates thoughtful intention on the part of sellers. The median price of a single-family unit held steady at $387,300, a decrease of only 0.7% compared to the month before. The average price of a Calgary single-family unit in November recorded at $435,471, 5% off the average recorded last November.

Change in the condo market indicators revealed more consistent month-over-month buyer/seller intention. Condominium sales recorded a decline of 29% from October this year, while new listings in November dropped 30.8% below new listings added one month ago. The average price of a condominium unit dropped 1.2% below the average price the month before and recorded at $312,710 this November.

October 2008 Market Review

Calgary has been through quite the ride over the last couple weeks.  I’m sure that most of Canada has felt something with the financial crisis that we have all seen and gone through.

As I write this, we are in a better place than we were at the end of October.  But it is somewhat to be expected as invetory usually drops off this time of year.  End of October we were sitting around 8500 listings and right now we are just over 8000.  This is good, except that we still have 7.8 months worth of invetory on the market with the number of sales that are happening.  In a truly balanced market, we should see this number of months be around 2-4.

Advice to Sellers:

Right now, you are wanting to really stay on top of the pricing of your home.  We have bargain hunters out there, with low bids that are driving the prices down.  If you are in a true need to sell your home, you will have to most likely cut your price further, as this is what buyers are looking for right now.  As in the past, when it was the sellers day to shine, and prices were rising, and it felt you could ask almost anything for you home, it’s reversed.  Will it stay this way forever, and prices go back down to year 2000 prices… probably not.  We still have a strong economy.  Across Canada, prices have dropped about 14% and Alberta had the least amount of price reductions at 7%.  We are still THE province in Canada.  But make sure you take a serious look at what it is your selling, and what your asking for it…

Advice to Buyers

BUY… BUY… BUY…  Right now, more than ever, is a great time to purchase a new home or investment property.  Especially with Christmas coming up and the number of motivated sellers rising daily.  We have seen some incredible price drops, and buyers that we work with get some great deals.  These days will pass, and it will go back to a balanced or a sellers market, so you don’t want to miss your chance to get into the new home that you are waiting for…

Here is a link to the last CREB (Calgary Real Estate Board) report put out for October 2008

Below are some graphs about the Calgary Real Estate Market over the last year… Hope you find them helpful.

You can click on the images to enlarge them in a new browser window.

September 2008 Market Review

September has been a good and bad month for real estate.  What I mean by this is that the Single Family market has recovered some in the absorption rate to 4.7 months of invetory from 5+ last month, and the Condo market has gone over 6 months of invetory.  For single family, this is a good thing… what I mean is that it is now a strong buyers market and prices should not decrease and such great speed now.  But rather float around where they are currently at.  For Condos on the other hand, the prices will probably continue to drop much quicker.

The Condo median price has decreased 11.67% from September 2007 to $265,000 where as the Single Family homes median price has only decreased 6.06% to $395,000 from the same time last year.

Advice to Sellers:

My advice to sellers continues to be to emphasize the critical importance of pricing your property for the new reality. It is crucial to get ahead of the decreasing prices in this market. Most sellers instinctively want to be on the higher side when choosing a list price – it is natural to do so. To be honest, it is also a mistake in this market. If anything you want to be on the aggressive side with respect to list price in this market.  There are many reasons for this, but the biggest one is competition.  You as a seller will have a number of homes that you are competing against, and you need to make your home stand out to the potential buyer.  Most buyers the we work with day in and day out are looking for one thing… a good deal.  It is human nature to want to get a deal, and rightly so.  We all want a deal!  As I have talked about before as a seller, you need to put your foot in the shoe of a buyer, and offer what they are looking for.

Advice to Buyers:

BUY… Right now there are great opportunities to purchase.  With the banks starting to tighten their lending, and prices in single family homes starting to stabilize, but still remaining a strong buyers market, there are some great deals to be had.  If you are looking in the Condo market, prices will most likely continue to fall further, as the number of new condos coming on the market via builders, and speculative buyers will rise and in turn create a further downturn in the prices in condos.

Below are a couple graphs that you may find usefull.

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