2010 will go down in history as one of the slowest years in the Calgary's Real Estate Market in many years with December home and condo sales levels remaining relatively unchanged. It was a challenging year and I again thank my clients for their ongoing business, referrals and trust.
The question on everyone's mind is what is in store for 2011. I've had a number of folks ask me my thoughts lately and I personally feel a cautious optimism. Although recent numbers trended down and then held somewhat steady, the overall recovery in the energy sector and stock markets make me more optimistic about the future. Sales numbers for holiday consumer sales, car sales and such have been positive, however concern regarding household debt is a recent media highlight. I don't believe that 2011 will mirror a year like 2006 however, based on what my clients are telling me, I do feel that more people are going to move forward with home purchases in 2011. Have we hit the bottom of the market? I don't know. However, I do know that this side of the curve offers a greater negotiating opportunity for buyers and more time to make decisions. Once the turn happens and the media begins to report that the market has turned, sellers will be less willing to negotiate as they speculate that prices will rise.
I echo the thoughts of Diane Scott, president of CREB:
“Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we are now seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.
Numbers of note:
The average price of a single family home in the city of Calgary in December 2010 was $441,341, showing a 3 per cent decrease from November 2010, when the average price was $455,460, and a 2 per cent decrease from December 2009, when the average price was $451,341. The average price of a condominium in the city of Calgary in December 2010 was $282,768, showing a 1 per cent decrease from November 2010, when the average price was $284,667 and a 2 per cent decrease over last year, when the average price was $288,640. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.
The median price of a single family home in the city of Calgary for December 2010 was $389,000, showing a 3 per cent decrease from November 2010 when the median price was $399,900. This was a 3 per cent decrease from December 2009, when the median price was $401,000. The median price of a condominium in December 2010 was $258,500, showing a 2 per cent increase from November 2010, when the median price was $253,300, and a 2 per cent decrease from December 2009, when it was $265,000.
“Supply outstripped demand in the second half of 2010, establishing conditions for a buyers’ market. Overall we did see significant improvements in affordability in the Calgary market in 2010—and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points. The median price did indeed decline in 2010, signaling a year-over-year price correction of about 2 per cent for single-family homes, just over 4 per cent for condos and 6 per cent for the outlying towns,” adds Scott.
Single family listings in the city of Calgary added for the month of December 2010 totaled 744, a decrease of 44 per cent from November 2010 when 1,318 new listings were added, and showing a decrease of 8 per cent from December 2009, when 806 new listings came to the market.
Condominium new listings in the city of Calgary added for December 2010 were 369, down 42 per cent from November 2010, when the MLS® saw 632 condo listings coming to the market. This is a decrease of 17 per cent from December 2009, when new condominium listings added were 444.
To read the full CREB press release and review the statistics please visit the CREB website
As always, feel free to contact me anytime. Happy New Year and I look forward to working with you and yours in 2011.