Calgary house sales surge in March?
Calgary Herald headline (April 2/12) read "Calgary house sales surge in March". Great tagline, the story goes on to describe how Calgary home sales showed a "stunning" growth when compared with a year ago (read full article here).
While all of this is fact, these numbers are all relative to those they're being compared to. We'd like to offer another perspective on the market, and allow readers make up their own minds.
According to WEBSTERS, Surge (verb) = "to rise suddenly to an excessive or abnormal value"
Not convinced that "surge" was the best way to describe last month's sales numbers, I checked the Calgary Real Estate Board's (CREB's) database for March sales in each of the past 10 years:
While the graph shows last month was easily the best March in the past five years for Calgary home sales, it also illustrates just how strong home sales activity was in the boom (bubble?) years of 2006 - 2007, as well as the two preceding years, 2004 & 2005.
Calgary condo sales for March showed a similar trend. With the exception of March 2009 (year of recovery from economic downturn) the number of Calgary condo sales in March have been relatively consistent since 2008:
Make no mistake, the Calgary real estate market is showing its best year-to-date numbers since the boom. In spite of any number of ongoing worldwide economic issues, confidence in the city has returned and Calgarians are once again showing some swagger. Job-growth for the province is forecast to lead the country for the next four years, which has translated into increased home sales along with higher sale prices. Absent of any exogenous world economic events, I'd expect this trend to continue for some time.
March 2012 Calgary Market Stats
Calgary Home Sales - March 2012
- Average Calgary House Price: $472,465 (up 2.4% from March 2011)
- Median Calgary House Price: $412,000 (up 3.5% from March 2011)
- Average DOM (days on market) for Calgary homes: 40 days (vs 39 days March 2011)
- Calgary home sales up 17.0% vs March 2011
Calgary Condo Sales - March 2012
- Average Calgary Condo Price: $287,933 (up 2.5% from March 2011)
- Median Calgary Condo Price: $265,000 (up 3.5% from March 2011)
- Average DOM (days on market) for Calgary condos: 48 days (vs 50 days March 2011)
- Calgary condo sales up 2.2% vs March 2011
For buyers, this is a great time to get into the market. Calgary homes & condos continue to sell for less than they did four years ago, completely contrary to what's currently happening in the Toronto & Vancouver markets. The current (year-to-date) average sale price for a Calgary home is $465,365 (vs $466,418 for 2011), while the year-to-date average sale price for a Calgary condo is $288,853. Interest rates continue to hover near all-time record lows, something that could change shortly given the improving economic news from the USA.
For sellers, keep in mind that the Calgary sale numbers are nowhere near the levels seen in 2004 through 2007, and it will still be some time before the price point reached at the peak of the 2007 boom is re-visited. If you're listing a property and would like to sell within 40 to 50 days, keep your list price realistic. Over-priced Calgary listings will not sell in the current market.
Whether you're buying or contemplating selling a Calgary home, give us a call @ 403-252-5900: Jim Sparrow, your trusted source for Calgary real estate.
If you're looking to sell or buy, do not hesitate to contact us.
We are prepared to work hard ensuring that your needs are met and that the result is more than you were hoping for. Nothing gives us more pleasure than your success and being with you through major life changes.