Homes for Sale & Housing Related Stories
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.
Stable housing market predicted in 2009
CMHCs housing market outlook for 2009 is discussed in a Calgary Herald article at this link. I previously discussed this report on my podcast and have linked to the original report here.
One result will be the end of the current buyers’ market.
The average resale home price will be $406,000, the federal agency predicts, barely above the anticipated 2008 price of $405,000 and down almost two per cent from $414,000 in 2007.
Desjardins Housing Affordability Index
Here’s a link to an interseting article in the Financial Post reporting that housing affordability has increased across Canada so far in 2008. This is due to softer prices combined with decreased mortgage rates. While there is still uncertainty on the horizon for many parts of the global economy the report by Desjardins suggests that housing affordability is moving closer to its long term average.
134 Saddleridge Close NE - $399,900
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Don’t miss this impressive custom built home located on a large quite fully landscaped corner lot featuring trees and mature flower beds. You’ll find an excellent floor plan that is family friendly yet ideal for entertaining with custom draperies and finishes in neutral tones. The kitchen is equipped with a large island, corner pantry, eating counter and black appliances. The second floor features a large master suite with walk-in closet and large ensuite. 2 oversize bedrooms with walk-in closets, a huge southwest facing bonus room and laundry room. Upgrades include rounded corners, brushed nickel hardware, glass panel French doors, oak trim, central vacuum system, knockdown ceilings with upgraded brushed nickel lighting package and an oversize garage (20×26′). A great home at a great price, don’t miss out!
July 2008 Market Report
SINGLE FAMILY HOMES
The inventory of single family homes on the market in Calgary declined form a high of over 7000 homes reached in May to 6,038 at the end of July. Compared with the inventory on the market this time last year this represents an increase of 33.9%
During the month there were 2,559 new listings brought online, almost identical to the pace in July 2007 of 2,548 homes. Total sales were 1,313 this year, down 12.17% from last year’s number.
Meanwhile, the average sale price was $456,380, representing a 9.8% decline from the all-time record reached last year of $505,920. Median price declined to $408,500 from $435,000 in same period last year.
* Average price information can be useful in identifying overall trends but doesn’t indicate actual prices in any particular community. For detailed information on home sale prices in your community, access the online home evaluation feature.
CONDOMINIUMS
Inventory on the re-sale condominium market is still significantly higher than last year. At the end of July 2008 there were 2,888 condo units on the market compared with just 1,634 last year, an increase of 76.7%. 535 units were sold in July compared with 603 units this time last year, down 11.3%.
The average price of a condominium unit sold last month was $296,338
, down 7% from last July’s average of $318,582. Median price corrected to $273,500 from $297,900 last year, down 8.2%.
* Average price information can be useful in identifying overall trends but doesn’t indicate actual prices in any particular community. For detailed information on home sale prices in your community, access the online home evaluation feature.
CONCLUSIONS
In general, homes are taking longer to sell with the increased competition from the oversupplied marketplace. The average condo or single family home on the market currently has been listed for 54 days, although this statistic varies widely in different communities and does not account for properties that have been re-listed.
Year-to-date sales volume is down about 30% in both the single family and condominium markets while inventories are up in both areas. As a result of the imbalance in supply and demand, sellers are experiencing increased pressure to accurately price their homes at market value. Get a quick and easy estimate of your home’s market value here.
* statistics and charts provided courtesy of Calgary Real Estate Board cooperative. Access the stats package in PDF format here.
More News on Mortgage Changes
As I summarized in a post eariler this month there are major changes coming to the mortgage industry in Canada. According to a recent article in the Calgary Herald the details of the changes which take effect on October 15th are still unclear.
In several areas, government backed mortgages are going to become harder to obtain after these changes take effect. The new measures are designed to “strengthen the Canadian Housing market and to reduce the risk of a U.S.-style housing bubble”.
In addition to a minimum credit score being implemented the maximum amoritzation period will be reduced from 40-years to 35-years and the minimum down payment will be set at 5% (currently zero-down is an option).
New Home Building Expected to Increase in 2009
According to a recent article in the Calgary Herald CMHC predicts an increase in the pace of construction for new single family homes next year. The market has been down significantly this year after very hot markets in 2006 and 2007.
For this to happen, the near record inventory of re-sale homes currently available will have to be cleared out. The absorption rate of re-sale homes has recently started to increase and inventory levels, though still very high, have started to decline over the past several weeks.
Open House Schedule - July 25-26
SATURDAY JULY 25 FROM 2-4:30
31 Bridlewood Close SW
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EXCELLENT VALUE in this FULLY FINISHED two storey on a quiet street in family-friendly Bridlewood. Vaulted entry with 18 foot ceiling into the large living room. Huge white kitchen with island opening onto the dining area with sliding patio doors to the quiet backyard and exposed aggregate patio. Three well sized bedrooms upstairs including master with walk-in closet and cheater en-suite door to a four piece bath. DEVELOPED basement offers a fourth bedroom and large rec room. Large double garage completes the package. Click the multi-media link for Virtual Tour and put this home on your list!
SUNDAY JULY 26 FROM 2-4:30
#2, 64 WOODACRES CRESCENT SW.
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In any real estate market, location is the name of the game. Here it is…backing onto access to Bebo Grove @ Fish Creek Park; sit on your back deck and watch the deer frolic. Within walking proximity to the park, this 5 level split townhome offers you a great opportunity that rarely comes up in this desirable, low turnover complex. This 3 bedroom, fully developed home offers approx 1530 ft2 of living space including bright, huge eat in kitchen with room for a nook or sitting area, living room with wood burning fireplace and views to the west of the park. The 3rd level offers 2 bedrooms and 4 pce bath, while the upper level boasts a huge master bedroom with large closet, 3 pce ensuite and clear view of the mountains on a clear day. The 5th level has a large rec room, 2 pce bath and laundry room. Finishing off this great package is a single attached garage. The complex is incredibly well cared for and is quite pretty.
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