March was beyond anyone’s expectations

March 2012 Stats update can be seen here

Sales, not prices, are the leading indicator of where the market’s going. Sales of single family homes in March were up 23% compared to the 3-year average.

With inventory down 19%, it doesn’t take long to figure out why 10% of homes are selling at list price or higher. There is a shortage of attractive homes for sale in Calgary.

On this table, it shows that homes priced under $400,000 are in a seller’s market. We haven’t seen so much red and green on that chart for a long time.

Another telling statistic is that 48% of the homes listed in Feb already have a firm sale.

When I was checking price reductions, it shows that prices were increased on 19 listings in the past week.

Is anyone surprised that the median price is holding steady in the face of so much activity, inventory shortage, and bidding wars?

The last week of the month saw an upswing in new listings. Let’s hope it continues for the sake of anyone who’s trying to buy. If you’ve been thinking of selling your home, this may be your last chance, because armageddon is just around the corner(according to Garth Turner and the bubble bloggers).

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2 responses to “March was beyond anyone’s expectations

  1. Why are you using a 3 year average and not comparing to peak prices of 2007? Is this to show how things have picked up since the small dip in 2008, before interest rates plummeted?

    Here are some Median Price’s at a glance that seem a lot lower than peak. Unfortunately CREB statistics don’t allow anyone to go back more than a year, because I’d like to perform a more in-depth analysis:

    Zone B SFH $279,000 Condo 158,000
    Penbrooke SFH $160,000 Condo 105,500
    VIctoria Park sold a SFH for $50,000??? (Do you have any insight on this one Bob?)
    Falcon Ridge SFH $212,000 Condo 147,500
    Temple Condo $137,000
    Huntington Hills Condo $130,000
    Thorncliff Condo $160,000
    Abbeydale SFH $239,000
    Marlborough Park SFH $255,000 Condo $151,400
    Marlborough SFH Condo $162,000
    Monterey Park SFH
    Dover SFH $205,000
    Castleridge SFH $210,200
    Pine Ridge Condo $120,000
    Redcarpet Mountview Condo $117,000
    Radisson Heights Condo $130,000
    Rundle Condo $132,000
    Bridlewood Condo $176,000 (highly desirable SW area)
    Haysboro Condo $150,000
    Oakridge Condo $149,500
    Sunalta Condo $161,000

    A lot of these areas are in Zone B, which has the stigma of being a less desirable area. Not everyone makes six figures, wants to spend everything they earn on housing, or they are a first time buyer. These properties seem like the only viable options for people in those categories.

    Does anyone else remember when 2 bedroom condos were a dwelling for singles, not a starter home for a small family?

    The selling of homes at higher than list price can be simply attributed to the incredibly low 3% mortgage rate war conducted by the banks last month.

    Have a good Sunday everyone! Time to get back outside and do some springtime yard work! 🙂

    Mike has 2007 covered on his blog, so I prefer to give numbers which no one else provides. There’s no point in duplicating his efforts. -Bob

  2. Between April 1 – 3, 14 homes have sold for list price or higher. Two of note, which both sold after one day on the market:

    – A Silver Springs home sold for $22,700 over list, for a final price of $491,500. It was purchased in 1986 for $116,500.

    – A Lake Bonavista home sold for $10,350 over list, for final price of $460,250. It was purchased in 1994 for $154,900.

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