We’re finally seeing the first signs of inventory increasing, although the prices are flirting with the all-time highs of 2007. Inventory was down 21% at the end of April.
This spring, I’ve set up searches for buyers with their criteria for price, location, etc., and it’s not unusual to see as few as one listing per month. This doesn’t give the prospective home buyer much encouragement.
It’s been a hectic market with low inventory, a shortage of new listings, attractive homes selling quickly, rising prices, and the highest sales in five years. I’ve been telling buyers to hang in there, because I expect we’ll see a lot more inventory in the summer months and not so many buyers. Hopefully the prices will stabilize or drop as well.
Vancouver inventory is at an all-time high with the lowest sales in years. Toronto, by most accounts, will be in the same boat soon. What about Calgary? Is it different here?
Artist rendering of The Rivers condo project
The most interesting part of this news story for me was this comment from Chris Bourrassa, chief operating officer of 26th Avenue River Investments Inc.,
“He said many of the buyers are business leaders who have vision and can see the economy moving in the right direction.
Calgary is very strong and they can just foresee that now is the time to move on some of these things…
Movement back into Calgary — in the form of transfers from international corporations — is also a trend worth noting.”
Read more Luxury Elbow river condo sells for $8.99 million
Not on MLS
Take note, this condo was not listed on MLS and will not affect the average price. If it was factored in to the 30-day condo stats, the average price would be $309,000 rather than the actual $295,591.
What’s the condo fee?
A different unit in the same building is listed on MLS for $7,990,000. The condo fees are $3,834/mo.
The 30-day median price in Calgary at $430,000 is now higher than at any time since August 2007. I remember the doubt in many buyers’ minds in early 2009 after the sub-prime mess in the U.S.
For those who took the risk, if you bought an average home in Calgary in Jan 2009, the median price has risen $55,300, or 15%. Average price is up $86,993, or 21%.
Bubble bloggers, most of whom have gone by the wayside, were spreading gloom and doom, eagerly awaiting the market to crash, as they stocked up on bottled water, ammo, and canned goods.
How many buyers are now sorry for listening to the doomsday crowd? Was it worth waiting three years, only to pay an additional $55,300 for your home? What are you going to do with all the canned beans, ammunition and firewood? Do you feel like the Greater Fool?
The graveyard of bubble blogs is getting crowded
Not much change over the past week. Attractive listings are still in demand and are selling fast. While other parts of the country such as Vancouver are finally starting their correction, Calgary’s sales and prices are the highest we’ve seen in five years.
New listings are showing signs of increasing, but inventory is still down substantially from where it usually is at this time of year. Sales are on track to be the best month in five years.
It’s almost unfathomable that home prices in Calgary could ever reach the lofty heights that were attained in 2007. That was the year when Calgary home prices reached their peak. Today, Continue reading
Update: It took 21 days for an accepted conditional offer, and 32 days for a firm sale at $430,000.
It’s been a while since I’ve asked readers to guess the days on market of a new listing, but here we go. It’s pretty rare to find a house in such an atractive area for $172/sq ft in Calgary. Check out this New listing in Ranchland Estates
It needs a bit of work, but most homes of this size and era are selling for around $200/sq ft if they’re in original condition. With a major renovation, this home would likely be selling in the $575,000 – $600,000 range.
I did a search on MLS of all active listings between 2500 – 2800 sq ft of a similar style(2-storeys and 2-storey splits). The results show 170 listings, and the lowest priced was this one. The next lowest was $474,800.
I could see that we had an inventory crunch coming. I said it back in January, but we’re now finally hearing it in the media:
Global TV(Fri May 4): A lot of people are looking to buy, but realtors say Continue reading
Last night on CBC’s The National, a panel of learned individuals were discussing the real estate “bubble” in Canada. CBC The bottomline
The general consensus was that we’ll see a 10 – 15% correction in housing prices. Continue reading