Sluggish Pace of Calgary MLS Sales Continues
Calgary MLS sales for the month of August showed a continuation of the sluggish trend we’ve been experiencing since May of this year. Metro Calgary real estate sales totaled 1,231, a 6.1% decline from July 2010 and a 37% drop from last August (combined SF Calgary homes and condos):
- SF (metro houses) Calgary sales totaled 867, a drop of 32% vs Aug 2009: (1,277 SF sales in Aug 2009)
- Metro Calgary condo sales totaled 364, a drop of 42% vs Aug 2009: (632 condo sales in Aug 2009)
Calgary Home Prices Soften
August sale prices for SF homes in Calgary averaged $445,617 a 4.1% decrease from July 2010 and a 1.9% drop from last August. The median sale price for Calgary metro SF homes also fell
- SF Calgary median price for Aug 2010 was $395,000 vs $400,000 in both July 2010 and last August
- Metro Calgary condo average sale price for Aug 2010 was $286,384 vs $291,168 in July and $283,330 last August
- Metro Calgary condo median sale price for Aug 2010 was $260,000 vs $263,000 in July and $260,000 last August
Calgary Market in Pause Mode or Going Into Free fall?
Much has been written over the summer about the current state of the Canadian real estate market. Indeed, just last week the Canadian Centre for Policy Alternatives released a report suggesting 6 major Canadian cities - including Calgary - were An Accident Waiting to Happen. The same day the CD Howe Institute responded by saying there's little chance of the Canadian real estate market having a U.S.-style price collapse. This week the Conference Board of Canada said there will be No free fall for lackluster Canadian housing market. As one of my colleagues (@KelleySkar) so nicely put it, none of us have a crystal ball.
I do see a slower Calgary market continuing until early 2011. Calgarians are no different than others around the world – they’re concerned about whether we’ll see a continued economic recovery or a recessionary double dip. How much this will cause prices to soften is anyone’s guess, but let's not forget Calgary real estate prices have always softened over the winter months. We're of the opinion that given the current economic uncertainty, no one can accurately predict where Calgary real estate prices will in 6-18 months time.
The cliché "it's a great time to buy Calgary property" is disingenuous at the best of times simply because it never applies to everyone. Even in exceptionally good economic times there are individuals who shouldn't purchase property. Everyone considering buying or selling property should always discuss their finances and tolerance for downside risk exposure with a qualified financial advisor and / or lender.
As always, your thoughts and opinions are welcomed. We'd be happy to discuss this or answer any questions on Calgary real estate - please feel free to contact me through the office @ 403-252-5900
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.