Calgary’s Market Forecast

March 22nd 2010

Alberta’s formerly hot housing market eased up in 2009. Early in the year, it was looking as though the market would enter a deep freeze. But when 2009 was in the books, sales were up 2.5 per cent over 2008 levels. Prices were down by 3.3 per cent.

Despite a deep recession, a surge in activity spurred by first-time buyers attracted by historically-low interest rates sent the number of sales much higher than expected, in several markets.

In some markets, prices returned to pre-recession highs. The Canadian Real Estate Association (CREA) says stronger sales in higher-priced markets have skewed the average price higher.

CREA is expecting the market to pick up in 2010 with sales surging by 9.1 per cent and prices rising by 4.7 per cent. Gains will be more modest in 2011, with CREA predicting sales to increase by 1.5 per cent and prices to rise by 1.2 per cent to an average of $361,700.

Meanwhile, the surge in activity has spread to new homes as well. While new home prices in November 2009 remained below those of November 2008, prices have begun to rise on a month-to-month basis

Calgary new house price changes from StatsCan:

-4.2% (November 2008-November 2009)

-5.6 (October 2008-October 2009)

-8.0% (June 2008-2009)

-7.9% (May 2008-May 2009)

-8.8% (April 2008-April 2009)

-8.7% (March 2008-March 2009)

-7.1% (February 2008-February 2009)

-4.3% (December 2007-December 2008)

-2.5% (November 2007-November 2008)

-1.6% (October 2007-October 2008)

-1.2% (September 2007-September 2008)

-1.1% (August 2007 – August 2008)

-0.3% (July 2007 – July 2008)

0.1% (June 2007-June 2008)

0.6% (May 2007-May 2008)

2.5% (April 2007-April 2008)

5.2% (February 2007-February 2008)

-0.3% (January 2007-January 2008)

Average resale home prices from MLS statistics:

$401,201 (November 2009)

$399,679 (October 2009)

$381,740 (July 2009)

$371,995 (April 2009)

$372,114 (March 2009)

$362,557 (December 2008)

$388,565 (October 2008)

$415,311 (September 2008)

$402,788 (July 2008)

$418,866 (June 2008)

*Information obtained from Stats Canada and CBC news


About rsmacdonald

My wife Sheri MacDonald is in her 10th year in real estate and I am in my 9th. We have sold over 125 Million dollars worth of real estate and we are the top team in our office. Big or small, we sell them all!
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