Remember 2007?

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, the average price of SFH at $493,541 is higher than it was in May 2007($487,523).

One of the big differences between now and then was that in 2007, we had a surge of new listings in March, April and May. This year, since March 1, we’ve had 23% fewer listings. Inventory at the end of May will be about the same as  it was in 2007, but the pace of growth is much slower.

Are we in for deja vu? Do you think it’s possible that we could reach, or even surpass, the peak prices of 2007? Why are so few homes being listed this year?
*****
Bidding wars update: Over the past two days, 17% of sales were for list price or higher.

2 responses to “Remember 2007?

  1. I had to laugh at Garth Turner’s blog today. He said “Usually I go to Kelowna to have the waitresses at Joey’s fawn over me, but two years ago I was also there to tell a hotel ballroom full of people they were at risk. Real estate, I said heroically (young women like certainty), will fall by a third in this city.”

    Garth came to calgary two years ago and said the same thing here. I wonder how all those people feel who took his advice and sold their homes? Instead of being greeted by fawning waitresses, he would probably be met by pitchforks and rope.

    • And if real estate loses value again, should we promote burning Realtors at the stake?

      Common sense tells us that Toronto and Vancouver markets are unsustainable. Markets like Winnipeg are listing 600 square foot, 70 year old crack shacks in bad neighborhood for $200,000.

      Why are these markets considered out of line with fundamental economics and Calgary is not? I’m open to real honest answers and debate.

      Also good find on the listing from the previous post. Seems like a decent deal in current market conditions.

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