CREB (The Calgary Real Estate Board) released the official numbers for October 2011 sales. The highlights: increased sales over 2010, communities which are showing significantly increased activity and some inner city neighbourhoods showing significant increases in average price.
One number folks sometimes use as a benchmark is ‘average sale price’. While it is interesting to view as a trend, it is not a reflection that a 2% increase in average price results in a 2% increase in potential sale price of a particular home. Whether due to the construction/sale of larger and higher priced homes, the sale of luxury property or the replacement of older properties with new infill construction, the average sale price can misrepresent what a homeowner may feel is appropriate for their home. It also depends on how your home compares to similar homes in your neighbourhood. Are you the only one with an updated home or the only one who hasn’t updated yet?
A number of folks I have been working with recently have been in the ‘renovate or move’ decision cycle. The popular show ‘Love it or List it’ is all about this challenge and I think has been successful in showing the potential cost of some upgrades, but also the successes of both making a renovation work or finding that great new home. When I'm asked by folks, I often say that if your layout and location work but you want a fresh look then consider staying, but if your layout or location no longer serve your needs then it is worth a thorough look to see what homes are on market. Either way, sometimes just running the numbers is enough to help make a good decision. Obtain contractor quotes, check out current listings for home prices in your preferred area and talk to me to give you some detailed information
As always, if you have any questions regarding the sale or purchase of a home, just give me a call. I am happy to help.
Some notable numbers from the CREB press release:
Single family home sales totaled 988 for the month of October 2011, an 11 per cent increase over October 2010, but continue to remain well below historical levels. Year-to-date sales totaled 11,503, a 10 per cent increase over last year.
October listings have edged upwards over last year’s levels, increasing by nearly two per cent, but year-to-date there are six per cent less listings than levels recorded last year.
The average price of single family homes for the month of October 2011 was $455,399, while the median price was $395,000, an increase of two per cent compared to last year. This is primarily due to the rise in the number of luxury homes sales. Despite the monthly price increase, however, year-to-date figures remained stable at levels comparable to the previous year.
Condominium sales for the first 10 months of the year totaled 4,681, a three per cent rise over the same period last year. Inventory levels remained at 1,935 units, resulting in months of supply pushing above five months.
Condominium year-to-date average and median prices in 2011 were $288,736 and $262,500, respectively, a slight decline over the first 10 months of 2010. The decline is mostly due to increased sales in units priced under $200,000.