May Brings Marked Decline In Home Sales - May 2010 Stats
Average price rises as move-up buyers enter market but Calgary home sales showed a marked decline in the month of May, according to figures released by the Calgary Real Estate Board (CREB®).
The number of single family homes sold in May 2010 in the city of Calgary was down 20 per cent from the same time a year ago, and condominium sales saw a decrease of 21 per cent from the same time a year ago.May 2010 saw 1,262 single family homes sold in the city of Calgary. This is a decrease of 7 per cent from 1,352 sales in April 2010. In May 2009, single family home sales totaled 1,584. The number of condominium sales for the month of May 2010 was 518. This was a decrease of 19 per cent from the 639 condominium transactions recorded in April 2010. In May 2009, condominium sales were 653.
“The first quarter of 2010 was exceptionally strong with our spring sales coming early in the wake of anticipated mortgage hikes,” says Diane Scott, president of CREB®. “We believe there are a number of factors contributing to this marked slowdown including a declining number of firsttime homebuyers in the market, a rise in monthly carrying costs as mortgage rates rise and to some extent market jitters in the wake of Greece’s financial crisis,” says Scott. “Consumers are feeling a little nervous about the recent instability of the stock markets—and with mortgage rate hikes behind us, it’s understandable that feelings of urgency among buyers have lessened,” adds Scott.
“Our inventory is shifting to higher price points as move-up buyers enter the market. This has resulted in an overall boost in average price,” says Scott. “Nonetheless our days on market year-over-year has decreased - suggesting that competitively priced homes are selling.”
“I believe this recent decline in sales is the result of an unsmooth transition from a first-time buyer market to a move-up buyer market. And it is likely that investors who waited out 2009 are now listing second homes and condos - giving an added boost to our inventory,” says Scott. “Nonetheless our economic fundamentals, including employment and net migration, seem to be building momentum and Canada’s overall outlook is positive. These steady improvements should offer some stability to Calgary’s housing market as we enter the second half of 2010,” adds Scott.
The median price of a single family home in the city of Calgary for May 2010 was $420,000, showing a 1 per cent increase from April 2010, when the median price was $417,000, and an 8 per cent increase from May 2009, when the median price was $390,000. The median price of a condominium in May 2010 was $279,900, showing a 5 per cent increase from April 2010, when the median was $267,500. That’s up 10 per cent from May 2009, when the median price was $255,000.
EXCERPTS from CREB® News Release June 2 2010 for May Stats.