Single Family Homes In The Inner City Drive Recovery

Calgary, February 1, 2011 – Single family home sales in the City of Calgary edged upwards month-over-month and showed the first year-over-year increase since April 2010, according to figures released today by CREB® (Calgary Real Estate Board).

The number of single family home sales in the month of January 2011 were 787, compared with December 2010, when sales were 734 — an increase of about 7 per cent. The number of condominium sales for the month of January 2011 was 297. This was down from the 320 condominium transactions recorded in December 2010.

Year-over-year, the number of single family homes sold in January 2011 in the city of Calgary increased by just over 3 per cent.  In January 2010, single family home sales totaled 762. Condominium sales saw a decrease of 21 per cent from the same time a year ago.  In January 2010, condominium sales were 376.

“More affordable housing will continue to attract homebuyers to the inner-city, particularly as employment in the city of Calgary continues to improve,” says Sano Stante, president of CREB®.  “Single family homes in the city are currently driving this gradual recovery, and we are seeing an uptick in the sale of homes below the $350,000 price point.  This may suggest more first time homebuyers are entering the market, providing the fuel needed for a sustained housing recovery.”

The average price of a single family home in the city of Calgary in January 2011 was $454,287, showing a 3 per cent increase from December 2010, when the average price was $441,341, and a 3 per cent increase from January 2010, when the average price was $441,217. The average price of a condominium in the city of Calgary in January 2011 was $287,954, showing a 2 per cent increase from December 2010, when the average price was $282,768 and a 2 per cent increase over last year, when the average price was $282,639.

The median price of a single family home in the city of Calgary for January 2011 was $390,000, showing a slight increase from December 2010 when the median price was $389,000. This was a 2 per cent decrease from January 2010, when the median price was $398,000. The median price of a condominium in January 2011 was $255,000, showing a 1 per cent decrease from December 2010, when the median price was $258,500, and a 4 per cent decrease from January 2010, when it was $265,000.

“The recovery in 2011 will be incremental and gradual.  Nonetheless, at the moment Calgary is offering buyers a great deal of affordability, low interest rates and a large selection of inventory,” says Stante.   “Overall the first quarter of 2011 will show modest improvements in sales which will lay the foundation for the return to a more balanced market,” he adds.

Single family listings in the city of Calgary added for the month of January 2011 totaled 1958, an increase of 169 per cent from December 2010 when 728 new listings were added, and showing an increase of 7 per cent from January 2010, when 1822 new listings came to the market.

Condominium new listings in the city of Calgary added for January 2011 were 861, an increase of 141 per cent from December 2010, when 361 condo listings were added to the market. This is a decrease of 9 per cent from January 2010, when new condominium listings added were 951.

“Alberta will begin to see growth in net-migration as the oil and gas sector regains traction. This will help boost consumer confidence and ultimately bring improvements to employment and family income—key drivers of our housing market,” says Stante.