Calgary Real Estate Board - Calgary MLS® May 2009

Calgary Housing Market Showing Year-Over-Year Gains

MLS® sales activity of single family Calgary metro homes was 1,584 in the month of May 2009 showing an increase of 23% from 1,290 sales in April 2009, according to figures released by the Calgary Real Estate Board (CREB®). This was a increase of 16% from May 2008 when single family home sales were 1,368. The number of condominium sales for the month of May 2009 was 653, an increase of 13% from the 579 condominium transactions recorded in April 2009 and a increase of 13% from May 2008 when 577 condominiums changed hands.

"The spring market has received an added boost from a growing number of first-time buyers entering the market," says Calgary Real Estate Board President Bonnie Wegerich. In the month of May, homes in Calgary metro priced at $400,000 or less accounted for nearly 70% of all home re-sales. "We are seeing the first year-over-yeargain in single family home sales since last September," says Wegerich. "A pent up demand has been building with many first-time homes buyers now taking advantage of affordable prices, record low interest rates and federal housing incentives," added Wegerich.

The average price of a single family Calgary metro home in May 2009 was $436,427 showing an increase of 2% from April 2009 when the average price was $426,311 and showing a decrease of 9% from May 2008 when the average price was $479,564. The average price of a Calgary metro condominium was $275,212 showing a 1% decrease from April 2009 when the average price was $277,953 and showing a decrease of 12% over last year when the average price was $311,816. 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.

"The gap between supply and demand at the end of last year was pushing prices down," says Wegerich. "But since December we have seen five consecutive months of increases in home sales while our inventory continues to trend lower. The gap has narrowed and prices are stabilizing."

Single family Calgary metro new listings added for the month of May totaled 2,235 up 11% from the 2,010 new listings added in April 2009 and showing a decrease of 35% from May 2008 when 3,432 new listings came to the market. Calgary metro condominium new listings added in May 2009 were 998, up 3% from April 2009 when the MLS® saw 967 condo listings coming to market. This is a decrease of 35% from May 2008 when condominium listings were 1,538.

The median price of a single family Calgary metro home in May 2009 was $390,000 showing an increase of 3% from April 2009 when the median price was $380,000 and down 7% from May 2008 when the median price was $419,000. The median price of a condominium in May 2009 was $255,000 up 2% from April 2009 when the median was $251,000 and down 11% from May 2008 when the median price was $285,000. All Calgary Metro MLS Statistics include properties listed and sold only within Calgary's City Limits. The median price is the best price that is midway between the least expensive and the 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.

"We need to be cautious about declaring a bottom is at hand, but the improvement in recent months is an encouraging shift," says Wegerich.

"All signs indicate we are moving to a balanced and stable market. Consumer confidence is improving, prices are holding steady and inventory is trending downward."

"I think some buyers are trying to predict the bottom of the market. the reality is if you spend too much time trying to anticipate the bottom, you miss out on the choice and selection," added Wegerich.

The Calgary Real Estate Board is a professional body of 5,126 licensed brokers and registered associates, representing 256 Member offices. The Board does not generate statistics or analysis of any individual member or company's market share. All MLS® active listings for Calgary and area may be found on the Board's website at www.creb.com

Jim English

Your Calgary Real Estate Specialist
For All Your Calgary Real Estate Needs



The Real Estate Company Ltd.
Suite 11, 5080 - 12a Street SE, Calgary, Alberta, Canada, T2G 5K9
Telephone: (403) 270 4060   Fax: (403) 283 9694
Email for Calgary Real Estate Information