Early rise in mortgage rates to boost calgary housing sales - Mar 2010 Stats
Calgary’s housing market enjoyed a healthy boost in March as homebuyers anticipated an earlier than expected rise in interest rates, according to figures released by the Calgary Real Estate Board (CREB®). Improved economic outlook and job prospects to be a bigger factor in the long-term according to CREB®.
"The number of single family homes sold in March 2010 in the city of Calgary was up 29 per cent from the same time a year ago, while condominium sales saw an increase of 37 per cent from the same time a year ago. March 2010 saw 1,396 single family homes sold in the city of Calgary. This is an increase of 35 per cent from 1,035 sales in February 2010. In March 2009, single family home sales totaled 1,086. The number of condominium sales for the month of March 2010 was 609. This was an increase of 14 per cent from the 536 condominium transactions recorded in February 2010. In March 2009, condominium sales were 446."
"The spring market has come early to Calgary,” said Diane Scott, president of CREB®. “Improved economic conditions, better employment prospects, and an earlier than expected rise in mortgage rates are all contributing to this early boost in sales this year."
"Undoubtedly the recent announcements by all our major banks to raise mortgage rates are motivating buyers to take the plunge,” Scott acknowledges. “But Calgary’s market remains in a healthy position and our sales are not outstripping supply. The rise in demand will also motivate sellers to consider listing this spring.” “There has been some speculation that mortgage rate hikes will adversely affect housing demand in the longterm, but we should keep in mind that a rise in rates was fully expected. The Bank of Canada has been operating at emergency rates as a response to the global recession. While a rise in rates may tone down demand later this year, we don’t feel this adjustment will prevent the vast majority of buyers with healthy credit to enter the housing market,” said Scott. “Ultimately improvements in employment and economic conditions will drive housing demand - Calgary’s economy has seen solid improvements in the first quarter of 2010,” added Scott."
"The median price of a single family home in the city of Calgary for March 2010 was $423,000, showing a 3 per cent increase from February 2010, when the median price was $411,000, and a 13 per cent increase from March 2009, when the median price was $375,000. The median price of a condominium in March 2010 was $275,000, showing a 3 per cent increase from February 2010, when the median was $265,900. That’s up 6 per cent from March 2009, when the median price was $260,000."
"Our average price has edged upwards as more move-up buyers enter the market and overall demand strengthens,” says Scott. “But this is not an unusual trend during a spring market. We expect this modest price growth to continue, but a rise in listings will likely curb this trend,” said Scott."
Source: CREB® News Release April 1 2010 for March Stats
Click March Map for larger Graph of MLS® Market Values
(one year snapshot in time)
Click for All 2010 Calgary MLS® Market Value Graphs
For the full new release and all community stats including Calgary-Metro, Satellite Towns, Country homes, condos, and residential homes, please go to our Calgary Real Estate Market Trends page.