Single family home sales in the City of Calgary edged upwards month-over-month and showed the first year-over-year increase since April 2010, according to figures released today by CREB.
As the oil and gas sector begins to increase migration to the city, the market for homes will improve. However, not all home types or areas of the city will fare the same. Already, the focus on inner-city properties has been visible while some outlying areas are seeing a slower response.
As buyers return to the marketplace so will more listings that have been waiting for market recovery so growth is expected to be incremental, gradual, and not equal across the city.
From recent experience with buyers I have also noted that those purchasing with less than 20% down have had to jump a couple of extra hoops when looking at property, specifically condos. Condo documents are often reviewed as part of the purchase process by banks/insurers so properties with risks perceived by the lender are being rejected. Well managed/constructed condo complexes have maintained stronger values and seen properties sell while sales on higher risk developments or complexes have remained stagnant.
As the provincial government is reviewing the Condominium Property Act we are looking forward to how condos will be structured and managed in the near future. I personally hope that any legislative changes allow buyers to have more confidence in the properties they are considering.
Some notable stats from the CREB package:
The average price of a single family home in the city of Calgary in January 2011 was $454,287, showing a 3 per cent increase from December 2010, when the average price was $441,341, and a 3 per cent increase from January 2010, when the average price was $441,217. The average price of a condominium in the city of Calgary in January 2011 was $287,954, showing a 2 per cent increase from December 2010, when the average price was $282,768 and a 2 per cent increase over last year, when the average price was $282,639.
The median price of a single family home in the city of Calgary for January 2011 was $390,000, showing a slight increase from December 2010 when the median price was $389,000. This was a 2 per cent decrease from January 2010, when the median price was $398,000. The median price of a condominium in January 2011 was $255,000, showing a 1 per cent decrease from December 2010, when the median price was $258,500, and a 4 per cent decrease from January 2010, when it was $265,000.