Calgary, March. 1, 2013 – Total residential sales for the month of February 2013 totaled 1,711 units, a one per cent decline over the previous year. Accounting for the leap year in 2012, activity in the single family market resembles last year’s activity. However, even with one less day in the February 2013 figures, condominium sales have made significant gains increasing by 13 per cent relative to February 2012.

Year-over-year single family sales growth totaled 1,209 units in the month of February, as supply levels continued to decline, limiting choice for those in the market.

“When new product comes onto the market, buyers are not delaying their purchasing decisions as the majority of homes are selling in less time at prices closer to their list price,” said CREB® President Becky Walters. “The tighter market conditions have supported price growth, however despite the current gains, single family home prices remain below the unadjusted benchmark high of $451,000.”

The unadjusted single family benchmark price for February 2013 was $442,500, a 1.3 per cent increase over the previous month and nine per cent higher than levels recorded in February 2012.

“With less selection in the single family market, particularly at the lower price ranges, more consumers are turning to the condominium market,” said Ann-Marie Lurie, CREB® Chief Economist. “Throughout the downturn there were more single family homes priced under $400,000. However, over the past few years the number of new single family listings in this range represents a declining share of the market, leaving consumers looking for more affordable products.”

Improved sales activity combined with reductions in total inventory levels have provided room for growth in condominium prices. The condominium apartment benchmark price totaled $252,900 in February 2013, a six per cent increase over the previous year. Meanwhile, townhouse condominium prices recorded a year-over-year increase of 4.7 per cent for a total of $283,200 in February.

“During the boom years, Calgary experienced significant growth in the employment sector and shortages in housing supply, ultimately creating frenzy amongst consumers driving up prices at unsustainable rates,” said Lurie. “Condominium prices have since corrected, and while the current price gains are a sign of recovery, the unadjusted condominium apartment and townhome benchmark prices still remain 14 per cent below the peak levels.”

While the average price reflects record levels in Calgary, those numbers can be misleading,” said Walters. “Last year there were more home sales in the higher-end segment of the Calgary market compared to 2007, and this trend has continued into 2013, causing the average price to rise above peak levels.”

CREB® focuses on the benchmark price which is based on the attributes of the home including repeat sales. This pricing methodology provides a better indication of how prices for similar properties have trended over time.

“While our economy does not reflect growth recorded pre-recession and continues to be plagued by short term risk, consumers are feeling confident about the long term prospects of this city and continue to support growth in our housing sector.” Said Lurie.

Calgary, Feb. 1, 2013 – Residential real estate sales in the city of Calgary started the year on a positive note, increasing by 15 per cent over the same month in 2012.

Total sales were 1,230 units, a significant increase over the 1,068 units last year. But sales remain well below January levels recorded through the peak years of 2003 to 2008.

“While activity is typically slower in the winter months, recent improvements in single-family new listings helped support improved sales in that market,” said CREB® President Becky Walters. “Overall indicators put the market in balanced conditions.”

Single-family sales totalled 879 units in January, a 15 per cent increase over January 2012 levels. New listings remained just above levels recorded at the same time in 2012, for a total of 1,737. The slight improvement in listings helped support sales growth, although inventory levels remain down by double digits.

“Inventory levels have improved relative to December, as is the seasonal trend,” Walters said.

The lower level of inventories can pose a challenge for buyers, as they will have to make their buying decisions more quickly than buyers have done over the past four years.

“However, this is by no means a signal that the seller has the advantage,” Walters said. “Consumers are fairly price-sensitive and look for value in their purchases.”

Unadjusted single-family benchmark prices are showing improvement over January 2012, increasing by nine per cent. They are relatively unchanged over figures reported in December 2012.

“Prices have improved in the Calgary market, but, as always, it is important to keep some perspective on this,” said Ann-Marie Lurie, CREB®’s chief economist. “While January’s year-over-year increase seems significant, price recovery occurred in the spring months of 2012 under tighter market conditions and home prices levelled off for the remainder of the year.”

Apartment and townhouse condominiums recorded respective sales of 204 and 147 units in January 2013. Although sales increased, the number of new listings declined.

“With excess supply relative to demand persisting for several years, the condominium apartment market has been slow to recover,” Lurie said. “Sales growth amidst declining listings has supported recent improvements in condominium apartment prices, something that has already been occurring in the single-family sector.”

The unadjusted benchmark apartment price totalled $251,300 in January, a 7.5 per cent increase over January 2012, and a one per cent increase over December figures.

Meanwhile, the condominium townhouse benchmark price was $283,400 in January, 4.9 per cent higher than January 2012, and slightly lower than levels recorded in December.

“There is cautious optimism over the economic situation in Calgary,” Lurie said.

While energy companies face market access challenges, several options are being considered to reach more diverse markets, she said.

“If some of these options are economically viable and pass regulatory approval, this would support economic growth moving forward.”

Video of New Cliff Bungalow listing

Calgary, Jan. 2, 2013 – Residential real estate sales in the city of Calgary ended the year on a high note, with sales volume up 15 per cent in 2012 compared to 2011, and benchmark prices up five per cent.

“Calgary’s housing market has finally started to recover,” said Ann-Marie Lurie, CREB®’s chief economist. “While prices remain shy of the highs recorded in 2007, this is a move in the right direction.”

Much of the sustainable recovery is fuelled from the growth in the energy sector, spilling over into all aspects of our economy, including housing, Lurie said. “There is no question employment and migration growth has supported housing demand, a trend that is expected to continue this year, albeit at a slower pace.”

The single-family market sales growth outpaced increases in the total condominium market within city limits. Single-family sales rose by 15 per cent in 2012 compared to 2011. New listings did not keep pace, declining by seven per cent over the same period. This has significantly reduced the inventory of single-family homes in the market, pushing prices up.

“Consumers in the market were looking for value, and, if a home was priced right based on a longer term view of their housing needs, they were buying,” said 2012 CREB® President Bob Jablonski.|

The price spread is expected to narrow as balanced market conditions support further price growth, he said. But in most communities, prices remain lower than 2007 levels.

The unadjusted single-family benchmark price was $434,800 for the month of December, 8.7-per-cent higher than 2011. On average, single-family prices are up by seven per cent for the year, and remain two per cent below peak pricing in 2007.

Condominium sales are improving, as lower supply levels and rising prices in the single-family market drove consumers to explore alternatives. Sales in the apartment and townhouse sector recorded annual increases of 12 and 16 per cent, respectively. Meanwhile, listings are declining in both sectors, keeping both markets in balanced conditions. Price growth has not been at the same pace as what was recorded in the single-family sector.

Condominium apartment benchmark prices totalled 248,700 in December, a 5.4 per cent increase over 2011. Annual average benchmark increases were two per cent, significantly lower than the five per cent increase in the annual average price.

The average price increase is misleading, as there were several multimillion-dollar condominium sales in 2012 that skewed figures up. With more sales occurring at the higher end of the spectrum, average and median prices are trending higher than the benchmark, which represents price growth for the same type of property.

“Calgary’s 2013 housing sector growth will ease both in terms of sales and price growth, differing from the declines expected on a national level,” Lurie said.

Calgary’s housing market did not recover at the same pace as other Canadian centres, and 2012 was the first time resale sales returned to more normal levels of activity, she said.

“It is expected that continued weakness in the natural gas sector, combined with the more cautious expansion approach in the oil sector, will persist this year. While economic activity will be strong enough to support moderate housing growth, the notion of an overheated housing market in 2013 is unlikely, given the economic backdrop.”

Calgary, Dec. 3, 2012 – Residential sales in the City of Calgary have increased by 15 per cent on a year-to-date basis, and were up 8-per-cent in November compared to the same month in 2011.

Nearly eight consecutive months of double-digit, year-over-year sales growth has caused inventory levels to decline because new listings have not kept up. However, the ratio between sales and inventory indicates the market remains in balanced territory.

“With fewer inventories in the market, consumers are eager to view new listings and if consumers see value they will buy,” said Bob Jablonski, CREB® President. “However, the market is not demonstrating the same frenzy that we saw during the overheated period.

“Clients are more cautious today and considering all their options. They have reverted back to considering if this is a home they can stay in for many years, because the quick equity gains are less likely.”

The 15-per-cent year-to-date increase in the city brings sales activity to levels more consistent with long term trends. Meanwhile, new listings have declined by 6 per cent after the first 11 months of the year, resulting in an average 17-per-cent decline in inventory levels, which were considered elevated. The months of supply have stayed within the lower range of the balanced territory throughout the year, and this has supported the city-wide average year-to-date benchmark price growth of 5 per cent.

Single family sales totaled 1,006 for the month of November, a 5-per-cent increase compared to 2011. Winter season typically sees a drop in sales activity, new listings and ultimately lower inventory levels.

Inventories declined to 2,586 units and sales activity also declined over the previous month, keeping the market in balance. Meanwhile the unadjusted benchmark price for single family homes was $433,600 in November 2012, unchanged compared to the previous month, and 8.5-per-cent higher than levels recorded in November 2011.

After 11 months of the year, condominium apartment and townhouse sales increased by a respective 11 and 17 per cent compared to the same period in 2011. The apartment market has remained in balance throughout most of the year, leading to some price gains following the declines recorded throughout much of 2011.

As of November, the benchmark price for an apartment condominium in Calgary was $248,000, while townhomes were $282,800. Both sectors of the condominium market recorded a 4-per-cent increase this month relative to November 2012. However, on a year-to-date average, this growth drops to 2 and 3 per cent for apartment and townhouse respectively.

“Despite elevated concerns regarding household debt and activity in other Canadian markets, the housing market continues to demonstrate resilience in Calgary,” said Ann-Marie Lurie, CREB® Chief Economist. “This is related to the migration, wage and employment growth recorded in the city.”

“Price growth has been stronger than expected, mostly due the single family market. However, it has leveled off as consumers’ sensitivity to price has encouraged them to consider their housing options in the well-supplied surrounding areas and the condominium market.”

“While the Calgary area market has been improving, it is not on the cusp of a dramatic rise or fall. Slower growth trends in the employment market along with changes in lending policy and near-term challenges in the oil sector will likely dampen demand, preventing a boom. The decline in new listings will compensate for any adjustment in demand, helping maintain price stability in the market.”

Calgary, Nov. 1, 2012 – City of Calgary sales activity marked a 23-per-cent increase over levels recorded in October 2011. The continued improvement in sales has pushed year-to-date sales activity to nearly 16-per-cent above levels recorded in 2011.

“Relative to national trends, we continue to move in the opposite direction, recording both sales and price growth,” said CREB® President Bob Jablonski. “However, despite the higher than anticipated sales growth this year our market is not overheating, simply returning to levels consistent with long term trends and prices still have not fully recovered after the last recession.”

Sales improved over 2011 levels across all housing types in the city. Single family sales growth has been the strongest, with nearly 17-per-cent more year-to-date sales this year compared to last year. Meanwhile, apartment condominium sales have been rising at a slower pace, with year-to-date sales nearly 12-per-cent higher than last year.

New listings within city limits totaled 2,312 for the month, a 9-per-cent decline over October 2011 levels. The decline in new listings relative to sales has continued to reduce total inventory levels across all sectors. However, because this is a less active period in real estate, the months of supply remains within balanced levels.

The strong demand for homes relative to the supply levels has caused some significant increases in the price of single family homes this year compared to 2011. As of October 2012, the benchmark price for a single family home was $433,300, an 8-per-cent increase over the previous year. While there has been significant recovery in Calgary home prices, typical unadjusted home prices have leveled off remaining relatively unchanged over the past 4 months, and remain below the highs recorded in 2007.

Condominium apartments recorded a benchmark price of $247,000 in October 2012, losing some ground over the previous month, but still higher than the previous year by 3 per cent. While on average condominium apartment prices have fallen more than risen since 2007, condominium prices this year have recovered to levels comparable to 2010.

After the first 10 months of the year condominium townhouse sales totaled 2,279, 16-per-cent higher than last year. The benchmark price for a townhouse in October was $279,000, a 3-per-cent improvement over October 2011.

“At the end of last year, the Calgary economy was growing and continued to post job growth,” said Ann-Marie Lurie, CREB®’s chief economist. “However, global economic uncertainty was increasing, impacting overall consumer confidence and contributing to a significant amount of caution in the resale market.

“While many of these global economic risks remain this year, consumers’ concern regarding the impact on our economy has lessened. Calgary has continued to record relatively strong economic, employment and migration growth. This combined with improving affordability has encouraged consumers to purchasing real estate in Calgary.”

Calgary, Oct. 1, 2012 – Residential sales activity continues to improve in the Calgary area, as year-over-year sales for the month of September increased by 11 per cent. After the first three quarters of the year, residential sales within city limits totaled 17,018, a 15-per-cent increase over 2011.

“There has been significant discussion over the slowing national market,” said Bob Jablonski, CREB® President. “However, Calgary is seeing improving sales activity and price growth with no indication that market is poised for a correction.

“In fact, for the first time in several years, the Calgary housing market is demonstrating typical behavior for this time of year.”

Single family sales activity is rising, even though new listings are steadily declining. The total number of active listings has slightly improved over August. This slight increase, combined with slower unadjusted sales activity in September compared to August, helped push the months of supply into a balanced position.

As of September, the benchmark single family home price totaled $432,900. While this figure is eight-per-cent higher than levels recorded in September 2011, prices appear to have leveled off over the past three months, not considering any potential seasonal factors.

Year-to-date condominium apartment sales totaled 2,762 units, a 10-per-cent increase over 2011. With new listings in decline and improving demand for condominiums, overall inventory levels are down and this has started to translate into moderate improvements in pricing. The apartment benchmark price for September was $249,300, a four-per-cent increase over September 2011. While the price increase may seem significant, it is important to note that, at this time last year, apartment prices were in decline.

Condominium townhouse sales totaled 2,061 units after the first three quarters of the year, 14-per-cent higher than last year. The benchmark price for a townhouse in September was $277,700, a two-per-cent improvement over September 2011.

These recent significant gains are returning the resale market to average levels of activity and price recovery. The resale market at the end of 2011 was well below typical levels of activity.“At the end of last year, a concern regarding the economic climate was heightened,” said CREB® Economist Ann-Marie Lurie. “There was discussion of a double-dip recession in the United States, coupled with weak domestic economic growth.

“While much of this uncertainty in the economy persists, consumers’ confidence in the prairie region has improved, compared to last year. This does not come as a surprise, given our province has recorded strong economic growth relative to Canada-wide figures.

“Calgary’s unemployment rate continues to fall, wages are improving, and our full time employment growth is far outpacing national averages.”

A note on pricing: The benchmark price represents the typical home price. As the benchmark price represents consumers wiliness to pay for the same type of home it provides a better representation of price changes in the market. Commonly used approaches, such as median and average prices, can misrepresent price changes as we do not know if the shift is caused by a change in the composition of what has sold.

Calgary, Sept. 4, 2012 – Following several months of higher than expected sales growth, Calgary residential sales in August totaled 1,725 units, a 10-per-cent increase over last year.

“While the sales grow remains strong, it is slower than previous five months in part due to the lack of new listings in the City’s single family market,” said Bob Jablonski, CREB® President. “With fewer products to choose from, many consumers are holding off on transacting or turning to surrounding towns, the new home market and condominiums.”

New listings within the City of Calgary total 2,585 units in August, down 13 per cent from one year ago and down more than four per cent on a year-to-date basis. Meanwhile, new listings in the surrounding towns have improved by nearly 10 per cent after the first eight months of this year.

“Improving choice, affordable prices, combined with lifestyle factors and the lack of choice in the single family market within city limits, have driven sales growth in towns surrounding the city,” said Jabslonski. “In general, the area has witnessed sales activity that is comparable to peak sales activity.”

Single family sales totaled 1,169 in August 2012, six per cent above levels recorded in 2011. Meanwhile, new listings declined by 14 per cent on a year-over-year basis over the same time frame. This year, demand has far outpaced new additions to supply in the single-family market, causing a significant depletion of standing inventories. However, the recent decline in sales growth helped ease the pressure on the market, as months of supply have risen to levels more consistent with balanced territory.

While sales growth activity did cool, the upward price pressure on single family homes will not likely ease until the fall. As of August, the benchmark price for a single family home was $432,600, an eight-per-cent increase over August 2011 levels. The increase may seem significant, but the prices have leveled off compared to the previous month and remain nearly $20,000 below peak levels recorded in July 2007.

August sales in both condominium apartment and townhouse units recorded year-over-year growth that outpaced the single family market. Year-to-date apartment sales have improved by nearly 10 per cent over 2011, while the level of new listings remained at levels similar to last year. The improvement in sales relative to new listings has helped reduce the elevated inventory levels, keeping this market in balanced territory.

The benchmark price of a condominium apartment for the month of August was $248,700, a 3.6-per-cent increase over the previous year. Meanwhile townhouse style condominiums had a monthly benchmark price of $278,200, only a 2.5-per-cent increase. While the upward momentum is a signal of continued recovery in the condominium market, the benchmark price for condominiums remains nearly 16 per cent below peak levels.

“Some continue to foresee a scenario where price declines are looming in the local housing market, especially given national trends,” said Ann-Marie Lurie, CREB® Chief Economist. “There is no question economic concerns can threaten our housing recovery. However, to date Calgary housing market consumers are exhibiting confidence evidenced through the pick-up in sales activity across all housing types.

“The rapid sales growth caused supply levels to drop, particularly in the single family market, resulting in price gains. While we anticipate recent movements in the single family resale market will take some pressure off the higher-than-expected price growth, another city wide price correction is not expected given current economic growth expectations combined with one of the best affordability climates in the country.”

Calgary, August 1, 2012 – Calgary continues to buck national housing sale trends. The 1,936 residential units sold in July represent a 21.3-per-cent increase over 2011.

“Recent mortgage rule changes prompted much discussion of a national housing correction. While the two largest cities (Vancouver and Toronto) have started to witness declines in home sales activity, Calgary continues to record improving sales and prices,” says Ann-Marie Lurie, Chief Economist for CREB®.

“The gains were supported from the economic growth in the region,” Lurie says. “Last year, Alberta led the country in economic growth and – with Calgary being the energy capital of the country – the city has benefited from growth in full-time employment, migration and overall improved confidence.”

Year-to-date City of Calgary sales totaled 13,684, a 16.5-per-cent increase over the same time in 2011. Other sectors within the city limits have also recorded significant growth. The single-family market recorded the largest gains at 18.9 per cent, while the condominium apartment posted a 9.4-per-cent rise year-to-date.

“The housing growth positions us with sales activity that is more consistent with long-term trends, of which we significantly fell short of since the recession,” says Bob Jablonski, President of CREB®. “Consumers have been cautious of the housing market coming out of the recession, but housing sales have improved considerably, driven by home prices that are still below peak, favourable interest rates and bullish forecasts on the local economy,.”

Consumers have delayed adding listings to the market, and, as a result, there are 7.5 per cent fewer single family listings and 3.1 per cent fewer condominium apartment listings, compared to this July 2011. July sales activity showed seasonal slowing over June’s level, providing some relief on the balance between supply and demand. Citywide months of supply trended upwards towards 3 months.

With tighter mortgage rules and tighter supply, consumers planning on “moving up” may be forced to revaluate what is within their budget. This may cause some homeowners to delay listing their homes, contributing to the diminished number of listings. However, if supply levels remain low, this will encourage consumers to turn toward the new home market.

Single family inventory levels were 3,646 units in June, nearly 20-per-cent lower than supply levels recorded in 2011.

Lower inventory, combined with increased sales, has resulted in stronger-than-anticipated price gains. The single family benchmark price reached $432,400 in July, a 7.8-per-cent increase over 2011, but on average only 5 per cent higher on a year-to-date basis. The increase in price has narrowed the variance from the peak of the market, but a 4-per-cent price gap remains.

Both the condominium apartment and townhouse market recorded year-over-year benchmark price gains of 2 per cent in July, for respective prices of $247,600 and $277,400.

“While the economic risks continue to weigh on the market, many consumers continue to see employment opportunities in the city,” says Lurie. “They have a better sense of job security and are taking advantage of a stable housing market.”