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Once-hot housing market chills
Calgary's prices stable as sales take steep decline
Calgary's residential real estate market in the first half of this year has been marked by declining sales, increasing listings and stabilizing sale prices compared with a year ago. The story in both the single-family home and condominium markets is similar. For the first six months of 2008, single-family home sales are down by more than 31 per cent compared with the same period a year ago, while condo sales decreased by more than 36 per cent.
New listings have increased by nearly eight per cent for single-family homes and by more than 23 per cent for condos.
The average sale price in both markets is close to a year ago -- up by 0.2 per cent for single-family homes ($472,163) and down by 0.76 per cent for condos ($312,460), according to statistics released by the Calgary Real Estate Board today.
"I think our market is remaining steady," said Bonnie Wegerich, CREB's president-elect. "We have a slight increase in metro single-family sales this month (from May). I think it's just moving along quite nicely. There's no big surprises and it's nice to see this.
"The new listings on the market have come down, so I think that's encouraging, yet at the same time there's still lots of properties for people to have a look at, so they have a choice," she said. "Single-family sales in June are down a little bit over last year, down slightly from May, but nothing drastic."
The 1,439 June sales in the single-family home market were down 18.1 per cent from June 2007, while the average sale price was also off by 4.65 per cent, to $473,774.
The June numbers were up from May sales, at 1,368, while the average price decreased from $479,564, registered the previous month.
The June condo market painted a similar picture. Sales were down 29.8 per cent from a year ago and the average sale price dropped by 2.55 per cent, to $315,042. In May, there were 577 condo sales in Calgary metro and the average sale price was $311,816.
The June MLS numbers are not surprising, said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp. -- it's a trend that has been predominant for most of this year.
The sales activity being down roughly a third from a year ago will likely continue for the rest of the year, he said.
And with active listings for single-family homes and for condos remaining high it's still "putting downward pressure on prices," he said.
"We're not going to likely see much price movement from where we are now," said Louie. "It appears that for condos it really has been pretty much stable at around the $311,000 and $312,000 mark. . . . We're looking at active listings probably peaking before the fall sometime between now and October.
"All things considered with all that supply out there, one would expect that prices would fall more than they have."
He said the peak for single-family home prices last year was in July when they averaged nearly $506,000.
July 3, 2008 in Canadian Real Estate Market | Permalink
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Comments
I also can see some confusion there. There is a decrease on one side and on the other side they stated that “ I think our market is remaining STEADY," said Bonnie Wegerich, CREB's president-elect. What does it mean?
We can also see which salary brackets have been affected the most. (Single family houses, condos).
I am expecting same situation also here in Toronto. Overvaluated prices need to be corrected.
Posted by: | Jul 4, 2008 4:57:36 PM
So did GTA Realtors learn something from Calgary RE Market?
In Calgary you have the best avg. incomes in Canada, less income and property taxes,and no Toronto land transfer TAX and again bust?
So overvalued properties are not good for Market
and the same story will come in Toronto Area,as well.
Posted by: | Jul 4, 2008 1:40:37 AM
"I think our market is remaining STEADY," said Bonnie Wegerich, CREB's president-elect.
“The MLS report shows that single family homes sales in Calgary in June, a decline of 18.1% in year-over-year sales. Condominium sales in June, a 29.8% decline from June 2007.”
For the first six months of 2008, single-family home sales are down by more than 31 per cent compared with the same period a year ago, while condo sales decreased by more than 36 per cent.
So they’re holding at a steady decline? Is that what the report is getting at?
People love to forget how badly Calgary housing cratered in 1985. The bust was huge, but this time it is different right?
Posted by: | Jul 4, 2008 1:21:57 AM
This article posted by Calgary Real Estate Board is "OK" and Calgary market still has price correction about -4.65%, because of weak sales from record year 2007.
But report from TREB for May/2008 is bizarre especialy for West Region of Toronto Area(Mississauga,Brampton,Oakville,Milton,Burlington),has decline of sales 13.1% and avg. price increased 17.8% from 2007 (or avg.price is up
$57,000.) Can somebody explain to me WHY?
Avg. price in East,Central, and North regions of GTA are up between 1.5% and 4.4%.
I can’t understend market in GTA at all, because East Region has decline 14.1% and avg. price increased from 2007 only 1.5 % (or avg. price is up $ 5,500)?
So west suburbs did “amaizing fake job”,even when sales had declined on the market….
Anyway Realtors don’t care about economy in Ontario and decline of sales in GTA.
My Real Estate prediction for June 2008:
Sales volume in GTA will be down between
14% and 17%.
My Real Estate prediction for July 2008:
Sales volume in GTA will be down between
17% and 22%.
The United States gave to Canadians a good prelude of what a market collapse is like.
It probably is different in Canada. The market here will collapse, but in its own unique fun Canadian way. Most assuredly the Federal government will be most interventionist in saving bankers from their own stupidity.
Also in US the fuel price is cheaper than Canada about 10% to 15%. In US avg. house price is about $ 208K, and in Canada $ 314K.
In US you can claim mortgage interest on your income, in Canada you can't do it.
In US you have cheaper property taxes,less income taxes,cheaper car,home and life insurances.
And in US the retail prices in stores are cheaper than Canadian about 20%.In Canada always you have unemployement rate higher than US...
But in Canada house prices can going only up?
Why,because we have "double wages" than US?
Avg. Net income in Canada is 20% less than US,and we have to pay more for houses,food,fuel,
taxes,insurances and etc..
So,now US is in big economy depression and Canada has even worst when you'll see
avg. living standard of population.
Posted by: | Jul 4, 2008 12:49:45 AM
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