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!

Over the past week, the listing count in Calgary has decreased.  This is a good thing, especially when it is mixed with the number of sales increasing.  The median prices for both condos and single family homes have stayed roughly the same as last week with condos at $248,000 (up $1,000) and single family at $377,500.  As well the average days on market have decreased and both condos and single family are sitting at 62 days on market.  With the prices staying where they are at, some would say that the market is starting to stabilize.  I do hope that this is the case, but we will need to have more than a couple weeks of data to see this.  If prices remain the same into the end of February time frame, the tides may have calmed.  We will have to wait and see.

Same as last week, many of the places that buyers are seeing are not quality listings, that do not show well.  This is one area that we try to stand out from the crowd in, and when buyers look at our listings we get many comments that the home viewed was in impeccable condition.

If you are considering buying in Calgary, right now is a great time to buy, as there are some highly motivated sellers out there.  But on the flip side, if you are needing to sell, you need to market your home a certain way, and price it properly, or it could cost you more in the long run.

Thanks for checking out our blog, and we hope that you find it informative and helpful in your real estate adventures.

On the flip side, many buyers are finding that the properties that they are looking at aren’t up to standard, and aren’t great properties. If you have a quality listing and it’s at a good price, it will sell in this market. I have heard of, and been apart of a couple multiple offers happening over the past couple weeks, on properties that are valued well. The big thing in this market, and I’ve said it before, comes down to price. Buyers are still looking for a good deal.

The Average and Median price of Condo’s (CND) and Single Family (SF) have been dancing around, which we suspected and predicted from end of 2008.  For SF homes the price since the beginning of the year increased in the Median and Average price, both apx. By $3,000 to end up this week at $380,500 (median) and $417,121 (average).  For CND’s we have seen a decrease in the average and median price.  The median price on Jan. 2 was at $250,000 and on Jan. 20 was at $245,000, and the average price has actually stayed almost the same at $264,659 on Jan. 2 and $264,729 on Jan. 20.

The average Days On Market (DOM) is apx 60 days for both CND’s and SF homes.

For the coming weeks, we will most likely see the listing count continue to rise as more properties get listed or re-listed.  There are buyers out there buying, and they are still looking for a good deal, which in sellers terms means a good price.  It’s human nature to want to get a good deal, and if you are looking to buy in this market as well, you will inturn want to get a ‘good deal’ too.

If you are fortunate to have an offer in this market, it is worth a serious look at, and consideration as the future months may get a bit tight with the number of listings coming onto the 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.

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.

“Prices went up nearly 100 per cent in 2-1/2 years,” he says. “Let’s just say the ‘why’ for the decline can be found in the words, ‘Too far, too fast’.”

I do agree that there was a huge increase, but I do disagree that it was too far, too fast.  If we had increases like this over 5+ years, than yes, but in this case, the market is adjusting and finding it’s new bottom.  Every booming economy has it’s moments of breathing.  The market is alive and therefore needs to breathe.  As a seller in this market you really need to be on your game and know your ’stuff’.

Seller’s also really need to think like a buyer in this market.  By this I’m saying that you need to put your feet in the shoes of a buyer, and clearly understand what they think, so you are able to market to them properly.

The market is changing, and will do so for a while. Prices will most likely decline, to what extent and for how long?  Great question… don’t know…  When the market finds it’s new bottom, then we will be able to for sure say… “The Sellers Market is Back”.

On the flip side, it is truly a great time to purchase a home.  If you are planning on living in the home for 2+ years, there are some great deals out there.  If you are looking to do investments… again, great time!  If the investment will be a flip of a home, you might want to stear away from that right now, but for long term rentals… that’s the place to be!

Cheers!

Calgary’s MLS® Sales for the month of February show signs of increased market pace, according to ?gures released by the Calgary Real Estate Board (CREB®).

Single family Calgary metro properties changing hands in February 2008 were 1,252, an increase of 15.6 percent over the 1,083 sales reported in January 2008 but showing a decrease of 35.5 from the same period last year, when the sales were 1,942. Single family Calgary metro new listings added for the month of February totaled, 2,981, a decrease of 1.4 per cent from January’s new listing of 3,023 and an increase of 35.1 per cent over the 2,206 new listings added in February 2007.  The median price of a single family Calgary metro home in February 2008 was $428,000 showing a 4.9 per cent increase over February 2007, when the median price was $408,000 and showing a 4.4 per cent increase from last month when the median price was $410,000.  All Calgary Metro MLS® statistics include properties listed and sold only within Calgary’s City limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

Calgary metro condominium new listings added in February 2008 were 1,244, showing an increase of 39.9 per cent from the 889 new condominium listings added in February 2007.  This is an 11.5 per cent decrease from last month, when the new listings added were 1,406.
Calgary metro condominium sales in February 2008 were 562; a decrease of 37.2 per cent from February 2007 when 895 condominiums changed hands and an increase of 23.8 per cent from the 454 sales recorded in the month of January 2008.

“It appears as though things are picking up, as we move into the ?nal month of the ?rst quarter.  I don’t anticipate we’ll see the blistering
market that we experienced in the early parts of 2006 and 2007, but I do anticipate stability in this now corrected market,” remarked CREB® President, Ed Jensen.  “Calgary is a very desirable place to live at the moment, with our strong economy, low unemployment rates, strength in the oil and gas industry; people are still moving here and that’s great for real estate.” concluded, Jensen.

The average price of a single family Calgary metro home in February 2008 was $471,696, showing a 5.2 per cent increase over February 2007, when the average price was $448,557. The average price of a metro condominium was $311,812, showing a 3.3 per cent increase over February 2007 when the average price was $301,812.  Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas.

Source: Calgary Real Estate Board