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Calgary Real Estate Market Report: May 2012

Posted by Jim Sparrow on Friday, June 8th, 2012 at 2:27pm.

Calgary Home Sale Price Sets New Record

Calgary Real Estate Market Report - May 2012 June 8th: May 2012 was another strong month for the Calgary real estate market, with a couple of new records set for May MLS sales.

Both the average and median sale price for a Calgary home eclipsed previous record levels for the month, and were close to topping the all-time records in both these categories.  

Calgary Home Sales

Calgary home sales (single family) totalled 1,713 in May, 31% more than last years number and the highest number of sales since May 2007. The average sale price of $501,957 was a new record for the month, as was the median sale price of $436,000. Median sale price is the level at which half the number of sales are higher and the other half are lower

Single family homes sold in Calgary - May 2012

  • May 2012 SF home sales = 1,713, 31% higher than last year & 5.1% higher than 10 year average for the month

Average & Median sale price for Calgary homes - May 2012

  • May 2012 median sale price = $436,000, up 3.1% from May 2011 New record for month
  • May 2012 average sale price = $501,957, up 2.7% from May 2011 New record for month

Calgary Condo Sales

Calgary condo sales for May 2012 also increased significantly versus 2011, with 675 condos sold on the Calgary MLS, a 34.2% jump from May 2011. While the average sale price for condos jumped 4.9% vs. last May, the median sale price was flat, showing only a 0.6% rise over last years number, and 12.3% lower than the median condo sale price recorded 5 yrs ago in May 2007

Number of Calgary condos sold - May 2012

  • May 2012 condo sales = 675, 34.2% higher than last year and 0.9% higher than the 10 year average for the month

Average & Median sale price of a Calgary condo - May 2012

  • May 2012 median sale price = $270,000, up 0.6% from May 2011
  • May 2012 average sale price = $301,615, up 4.9% from May 2011

Calgary Luxury Home Sales

Calgary luxury homes & condos – properties that sold for $1,000,000 or more – recorded 81 sales in May 2012, 59% more than sold in May 2011. This also represents a new all-time record for luxury sales vs. any month in the past. Year to date, there have been 242 luxury homes sold in Calgary, 12% more than the next best year (2007).

What the numbers mean?

The first five months of 2012 reflect a long awaited recovery in the Calgary real estate market. The May numbers only add to what we’ve seen year to date – solid gains in both sales numbers and prices. This is far more pronounced on the single family home side than on the condo side, where available inventory is still  at levels that don’t allow for much appreciation on the price side.

The graphic below illustrates how the median house price has changed over the past 12 weeks. This trend is unlikely to continue much longer as the cyclical seasonal demand tends to wane in the period June through August. Whether it returns in the fall is anyone’s guess

Median Sale Price of a Calgary home - March thru May 2012

  • Median price for a Calgary home rises 8.9% over past 12 weeks

Calgary’s recovery has been supported by any number of factors, of which the three most important are:

  • Local GDP growth (Calgary's economy is supported by massive oilsands investment)
  • Regional + local job growth (demand for qualified employees is high; Calgary unemployment rate now under 5%)
  • In-migration (Canadians & foreigners migrating to where the jobs are)

Any number of other factors influence the Calgary housing market, including continued low interest rates, as well as the global economy. Ongoing economic issues in Europe (i.e. Greece & Spain) have resulted in both stock markets and commodity prices falling over the past 10 days, and could well be a drag on the global economy. Whatever happens, our city is well-positioned to weather any downturn, and it's predicted Calgary will be the shining star of the Canadian economy for the next 3 to 4 years.

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