Home sales in the city of Calgary were down month-over-month in October 2010, showing signs that buyers still remain cautious, despite signs of economic recovery. Year-over-year sales continued to trend lower in the month of October, according to figures released today by the Calgary Real Estate Board (Source: CREB® Nov 1 News Release) The number of single family home sales in the month of October 2010 shrank by 7% at 888, compared with September 2010, and were down 31% from October 2009. The number of condominium sales for the month of October 2010 was 310,a decrease of 15 per cent from September 2010, and a decrease of 48% from the same time a year ago. “Buyers remain cautious, perhaps waiting to feel a little more confidence in Calgary’s economic growth and their own job security,” says Diane Scott, president of CREB ®. “We believe economic recovery will build momentum into 2011 as the outlook for oil and gas and other sectors continues to improve. This, coupled with low interest rates and improved affordability, should eventually help to stimulate Calgary’s housing market,” adds Scott. The median price of a single family home in the city of Calgary for October 2010 was $387,900, showing a 1% decrease from September 2010 and a 5% decrease from October 2009. The median price of a condominium in October 2010 was $255,000, showing a 4 per cent decrease from September, and a 3% decrease from October 2009. “Our average price is being buoyed by more sales in the million dollar plus category. Despite a slowdown in certain market segments, homes sold in the city of Calgary at one million dollars or more have actually seen an increase of more than 15 per cent when compared to the same time one year ago. This boost in sales is, indeed, a bright spot in our current market,” says Scott. “We are seeing some decline in the number of new listings coming on to the market. A continuing decline in supply will help bring the market into balance,” says Scott. “We believe we will see a tempering of our inventory levels, as some sellers offer marginal reductions in prices, or others choose to pull their home off the market for a period of time,” notes Scott. “Overall, we’re cautiously optimistic that Calgary’s economic recovery will pick up as we move into 2011—but in-migration will be needed to fuel a sustained recovery in Calgary’s housing market,” says Scott. |