"Home sales in the city of Calgary were up month-over-month in September 2010, the first uptick in sales since April 2010. Year over-year sales continued to trend lower in the month of September, but at a pace slower than previous months" (Source: CREB® Oct 1 News Release). The number of single family home sales in the month of September 2010 grew by 10%, compared with August 2010. Single family listings in the city of Calgary added for the month of September 2010 increased 15%from August 2010. The number of condominium sales for the month of September 2010 increased 1% from August 2010. Condominium new listings in the city of Calgary added for September 2010 were up 14% from August 2010. “There are signs that September may mark a gradual, if not slight, uptick for Calgary’s housing market—we are seeing a modest improvement since the market’s decline, that really started in April of this year,” says Diane Scott, president of CREB®. “The Bank of Canada is in no hurry to raise interest rates to any significant level, and affordability continues to improve in key segments of the Calgary housing market. These factors, along with great selection, have clearly tipped this market in favour of the buyer,” says Scott. The median price of a single family home in the city of Calgary for September 2010 was $390,000, showing a 1% decrease from August 2010 and a 2% decrease from September 2009. The median price of a condominium in September 2010 was $265,000, a 2 per cent increase from August 2010 and no change from 2009. “Clearly there is a shift in the types of buyers entering the market. It was first-time home buyers who drove the late market recovery last fall and this spring. While lower priced home sales have declined, home sales over $1 million have actually increased by 2% this year, as compared to the same period last year,” says Scott. “Unlike the volume of foreclosures we have seen south of the border, Canada’s market has seen only a small increase in arrears and foreclosures. Nonetheless this increase likely had a modest impact on our current inventory—we expect this to have a small influence on price and supply as they work through the market this fall,” noted Scott. “While consumer confidence and job growth has improved, economic jitters will continue to impact Calgary’s housing marketing into the fall. More and more homebuyers will eventually return to the marketplace, but for the moment they remain moderately cautious. Fall sales should improve slightly, reflecting improved job creation—but inmigration will be needed to fuel a sustained recovery in Calgary’s housing market,” says Scott. |