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Category Archives: Market update
Image ImageMarket update Jul 1 – 15, 2013
Bloodbath postponed for five years
“House-aggeddon” was supposed to have happened every year between 2008 – 2011. No luck.
After the mortgage rule changes, a devastating crash was predicted for 2012. No luck.
A crash of biblical proportions was forecast for 2013. That one’s gone by the wayside.
Now its been delayed for another five years according to this gem from GreaterFool.ca: . “If so many people are rushing to lock-in pre-approved mortgage rates while home prices are still high, how bad is it going to be in 2018 when the rates are closer to 10%??? Its going to be a bloodbath!”
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.
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
Posted in Market update, Month-end
Market update Jun 1 – 18, 2013
To quote Ben Rabidoux, “Hard to see how Alberta’s housing market will slow meaningfully given population growth + low units under constrctn.”
Rabidoux: “Alberta nominal y/y population growth in Q2 2013 was HIGHER than Ontario for the first time….ever.”
Here’s a chart from Rabidoux showing population growth:
Posted in Calgary SFH, Market update, Population, Predictions
Market update Jun 1 -11, 2013
According to the Teranet – National Bank house price index for May which was released today, Calgary prices recorded a 2.3% month-over-month gain, while year-over-year, Calgary’s index was up 5.8%.(CREB data shows the y-o-y median price up 4.1%)
Posted in Calgary SFH, Market update, Statistics
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.
From the Calgary Herald: Calgary housing market smashes records in May
Posted in Bidding wars, Calgary SFH, First-time buyers, Market update, Month-end
Market update May 1 – 19, 2013
The direct relationship between new listings and sales continues to be evident. In short, when there’s nothing to buy, sales suffer. Sales are only up 14% whereas earlier in the month when they were up 22%, but that can be attributed to low inventory and a lack of attractive new listings.
Posted in Calgary SFH, Market update
Some meltdown
Douglas Porter, chief economist with BMO Capital Markets, said evidence continues to mount that the Canadian housing market seems to have pulled off the fabled soft landing.
He said surprises on the sales data in recent months have consistently been on the high side of expectations, not the low side.
“While some are highlighting the fact that prices are now rising at ‘their slowest pace since the 2009 recession’ the plain facts are that: a) they are still rising, and b) faster than inflation, and c) prices are at all-time highs. Some meltdown,” he said
Read more in the Herald: Calgary a bright light among Canadian housing markets.
Posted in Calgary Herald, Calgary SFH, Correction, Market update, Predictions
Market update May 1 – 8, 2013
Inner-city development properties are in demand right now. A tear-down in Capitol Hill which was listed for $475,000 was sold in one day for $535,000. An old bungalow on a 50′ lot in Banff Trail sold in one day for $549,900 which was list price. It was purchased in 2009 for $470,000. These homes are usually bought by builders who construct 2 infills in place of one old house.
Bidding wars update: Over the past two days, 20% of sales were for list price or higher.
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