Calgary's residential real estate market continues to show positive growth.
City of Calgary sales activity marked a 23-per-cent increase over levels recorded in October 2011. The continued improvement in sales has pushed year-to-date sales activity to nearly 16-per-cent above levels recorded in 2011.
The detailed CREB statistics reports outlines the details, but the coles notes version is that while there is uncertainty in Vancouver and Toronto, Calgary real estate continues to remain at balanced levels and forecasts predict slow and steady growth. The positive economic outlook in our province, along with very low interest rates and a tight rental market may be encouraging people to look to home ownership. (Yes, a buyer can currently lock in at a 2.99% 5 year mortgage rate.)
Speaking of 2.99%, there was a great article in the Globe and Mail that came out a few days ago that is worth a read: Pay your mortgage like it's 2007. You'll save a pile of money.
Something that the statistics don't show is the coming trends due to demographic changes which will impact the demand for different property types. A preference for bungalows vs split levels or villas vs multi level townhomes won't reflect in average statistics but the slow change is one to note. When renovating your home, especially for resale, these trends are worth considering. I recently saw a gorgeous bungalow. It was perfect for my clients until we reached the master ensuite. There was a raised tub and shower area which required 2 tiled steps to access the tub and separate shower. I think it was meant to provide easier access to the tub, but it was a deal breaker.
Notable numbers from CREB:
The strong demand for homes relative to the supply levels has caused some significant increases in the price of single family homes this year compared to 2011. As of October 2012, the benchmark price for a single family home was $433,300, an 8-per-cent increase over the previous year. While there has been significant recovery in Calgary home prices, typical unadjusted home prices have leveled off remaining relatively unchanged over the past 4 months, and remain below the highs recorded in 2007.
Condominium apartments recorded a benchmark price of $247,000 in October 2012, losing some ground over the previous month, but still higher than the previous year by 3 per cent. While on average condominium apartment prices have fallen more than risen since 2007, condominium prices this year have recovered to levels comparable to 2010.
After the first 10 months of the year condominium townhouse sales totaled 2,279, 16-per-cent higher than last year. The benchmark price for a townhouse in October was $279,000, a 3-per-cent improvement over October 2011.
Questions about the market or your future sale or purchase. As always, feel free to contact me.