Category Archives: Month-end

Market update July 2014

Inventory vs sales and price2
As always in the summer, the price dropped slightly in July. Sales activity is still strong, and more homes are being listed compared to historical averages. Inventory is still low. 19% of homes sold for list price or higher.

If you bought an average home in Calgary in July 2013, the price has increased $29,000 in the past year.

From the archives:

What were they saying two years ago(July 25, 2012): Housing market headed for 25% crash as predicted on Garth Turner’s Greater Fool blog

If the price had dropped 25%, we’d have a median price of $314,000 today. Since July 2012, the price has risen 16% to $484,900.

Market update June 30, 2014

Inventory vs sales and price2
Slightly better conditions for buyers in June

  • More homes are being listed
  • Bidding wars have eased, but are still commonplace.
  • 26% of homes sold for list price or higher in June.
  • The average amount paid over list price was $6,417.
  • The median price did not increase
  • Average DOM(days-on-market) increased by 2 days
  • Inventory is almost up to last year’s level
  • The trend is your friend: The sales-to-new-listings trend is decreasing. Last year it was increasing.

If you bought an average home in Calgary in June 2013, the price has increased $40,000 in the past year.

Profit in past year: $37,000

Market update for May 2014

If you bought an average-priced house in May last year, you’ve just made a profit of $37,000. The median price has risen from $453,000 in 2013 to $490,000 today. If you bought at the previous peak in 2007, you’re now up $55,000.

Inventory vs sales and price2

With 31% of homes selling for list price or higher, it’s still a frenzied market for buyers, but a sign of hope: new listings are up by 12%.

For a more detailed summary of the month-end stats , go to my website

Market update March 31, 2014

Inventory vs sales and price2

My warnings last year of a looming inventory shortage have become reality and it’s an entrenched seller’s market. If you’re looking to sell your home, chances are good that you’ll have a bidding war from prospective buyers. In March, 34% of homes sold for list price or higher. That’s the highest it’s been since the insanity of 2006-2007. Call me for a free evaluation 403-650-2514.

For a more detailed summary of the month-end stats , go to my website

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Market update Sep 30, 2013

First timers

Market update July 31, 2013

Record sales in July

Update Aug 1: The Financial Post Magazine contacted me today regarding a story they’re doing about the real estate market across Canada. The reporter was asking  why Calgary was so different from other cities. I have my opinions which will eventually be published. What’s your take? (I had to chuckle when they asked about Garth Turner’s bad predictions for Calgary!)

How do you achieve record sales when there’s almost nothing to buy? Inventory is at its lowest point since 2006, so you know that attractive new listings are going fast. As we learned from the craziness of 2006 – 2007, a runaway market is no fun for anyone except a few sellers who are moving to cities where the prices are low or dropping. Many homes are sold by the time a buyer comes to view them. Sellers can realize a quick sale, but if they are moving up or across town, they have all the headaches of looking for a new home with all the difficulties and turmoil of an over-heated market. We require lots more inventory before things will settle down, and there is no sign of that happening.

Inventory vs sales and price2

First-time buyers were up 39% compared to the average of the past 3 years.

The sales-to-new-listings ratio at 80% is the highest it’s been since 2005. Homes under $500,000 are in huge demand, with an absorption rate of 1.1 in July. That is an entrenched seller’s market. Over the last four days of July, 15% of sales were for list price or higher. As Brad stated in his recent comment, Garth Turner looks very foolish for his dire predictions of a nosedive in Calgary’s sales. Be careful who you listen to.

Highest ever June average price

A record high price was set in June for single-family homes. The average single-family home price hit $527,162, up 7.7 per cent from last year, and eclipsing May’s record of $521,887.

Inventory was low before the flood. It is now seriously low.

Inventory vs sales and price Jun

First time buyers were up 37% compared to the 3-year average, and up 8% compared to last year.

The Calgary Herald has reports of homes selling sight-unseen. “We have seen in the past week properties sell, sight unseen, for families that have lost their homes in the flooding…. It is shifting into a sellers’ market where buyers must buy immediately when a property enters the market or risk losing it to competing offers if they wait. The rental market is becoming non-existent so the families must purchase an alternative.”

Read more: Record month in Calgary real estate

May 2013 Calgary SFH market update

Average and median prices reached an all-time high in May. A dramatic increase in first-time buyers bodes well for the move-up buyer and the long-term health of the market. For the last two days of May, 21% of homes sold for list price or higher, so bidding wars are still going strong. You can see a more comprehensive update on my Monthly stats update.

With inventory approaching the 3500 level, I’m hopeful we’ll see a moderation in prices and an end to the bidding wars for the remainder of the year.

Inventory vs sales and price2

From the Calgary Herald: Calgary housing market smashes records in May

What happened in April

A spike in new listings led to a dramatic rise in first-time buyers in April. Bidding wars are at their highest level in years. Over the past 3 days, 24% of homes sold for list price or higher. With new listings up 5%, I would have expected to see a drop in the median price, but the pent-up demand from buyers kept sales and prices up there. When 24% of homes are selling for list price or higher, you can be assured that inventory levels are not making for a healthy market. Let’s hope for a surge in new listings in May. You can see a more comprehensive update on my Monthly stats update.

Inventory vs sales and price

What happened in March

The median price hit an all-time high for Calgary at $450,000 which obliterates the previous high of $439,000 set back in Jun 2007.

Inventory vs sales and price

There’s an overwhelming demand for homes priced under $500,000 with only a 36-day supply of homes on the market. Last year in this price range, there was a 51-day supply.

Read more here Monthly stats update

Does the phenomenon of recency distort our views? How far back should you examine the numbers when considering housing data? From the Globe and Mail: Housing bears need to relax and take the long view.