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December 2008 Supply vs. Demand
The December 2008 market statistics released by the Calgary Real Estate Board (www.creb.com) show a continued seasonal decline in supply for both the single family and condominium markets. Current supply levels are 14.74% more in single family homes and 21.37% greater in condominiums.
Compared with last year the sales volume for December was down 46-47% resulting in the gap in supply vs. demand shown in the chart. The y-axis lists the number of months of supply based on the level of inventory and current number of sales per month.
December 2008 Market Report
The Calgary Real Estate Board released its monthly market statistics package for December 2008. Some highlights and selected charts are below (credit Calgary Real Estate Board www.creb.com), the report will be made publically available tomorrow.
We were expecting a slow month given the overall market conditions and the economic sentiment and we weren’t surprised. The number of homes sold (total MLS) was down roughly 47% compared with December 2007. The annual sales volume for 2008 vs. 2007 was down 29% for single family homes and 34% for condominiums. Although the volume is down significantly over last year, YTD median prices have declined by much less (2.85% for single family homes and 5.25% for condominiums).
2009 Property Tax Assessments
The 2009 City of Calgary tax assessments were published online today and the printed assessments have been mailed today. You can access your assessment online from the City of Calgary website at this direct link.
The assessments are based on the property value on July 1st, 2008 and the state of improvements at the end of 2008. Read more about how properties are assessed and the appeal process here.
Steady decline in inventory
Since April the inventory of single family homes in Calgary’s MLS® system has decreased from 7,099 to the current level of 4,812 (a decrease of 32%). Heading into the holiday season it is likely that the inventory levels will continue to recede for the rest of the year but sales numbers also tend to drop off over the holidays.
It remains to be seen if many of the listings that have come off the market over the past few months will be re-listed in the first quarter of next year and drive the inventory back up. Many homes have been sold while others previously for sale have been rented, others have decided not to move and some have decided to sit back and wait for what they hope will be a more balanced market next year. At the current inventory levels it wouldn’t take much of an increase in sales to significantly impact the absorption rate (see my previous post on supply vs. demand).
We’ll be heading into 2009 under almost the same inventory levels we had at the end of 2007. However, the current sales numbers are lower than they were a year ago. Ultimately a return to a more balanced market will depend on an increase in these sales.
Computerized room planning tools
Ikea has some useful (and free) online tools for planning room layouts. Currently they have office, kitchen and bedroom furnishings. Setup your room size, place windows, electrical plumbing and then place products from the Ikea catalogue into the room.
Cheaper to Buy than Rent
I received a question about a calculator I posted several months ago comparing the long-term costs of renting a home to the costs of home ownership. This calculator is an excellent tool for anyone considering purchasing their first home. Access it here.
With the currently low interest rates and more affordable homes, typical numbers show a savings of over $30,000 during the first 4 years of ownership for someone moving from a rental at $1,200 a month to a home purchased at $300,000 with 5% down payment.
Friday Report - December 12, 2008
This update covers the activity for the period of December 1 - December 9, 2008
| Calgary Metro - Single Family | 2008 | 2007 | % Change |
| Sales | 155 | 266 | (41%) |
| New Listings Added | 401 | 419 | (4.3%) |
| Inventory | 4,890 | N/A | N/A |
| Sales to New Listings | 39% | 63% | (24%) |
| Sales to Inventory | 3% | N/A | N/A |
| Calgary Metro - Condominium |
2008 | 2007 | % Change |
| Sales | 71 | 122 | (42%) |
| New Listings Added | 225 | 185 | 21.6% |
| Inventory | 2,364 | N/A | N/A |
| Sales to New Listings | 32% | 66% | (34%) |
| Sales to Inventory | 3% | N/A | N/A |
This report is based on data made available by the Calgary Real Estate Board on December 12, 2008.
November 2008 Market Report
The Calgary Real Estate Board released its monthly market statistics package for November. Some highlights and selected charts are below (credit Calgary Real Estate Board www.creb.com), you can download the full report in PDF here.
Sales declined during the month as we were expecting due to the time of the year and concerns over the global economic situation. Compared with this time last year, the median price of a single family home has declined by 5.45% and the median sale price of a condominium has decreased by 7.27%.
The number of homes sold (total MLS) was down about 25% compared with last November, which is consistent with the difference in sales volume year to date (down 26%). Although the volume is down significantly over last year, YTD median prices have declined by much less (3.07% for single family homes and 4.75% for condominiums).
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