2011 a year of steady improvement for the housing market

Calgary, January 3, 2012 – According to figures released today by CREB®
(Calgary Real Estate Board), Calgary residential sales in 2011 increased
eight per cent over last year, with 18,568 sales for 2011 compared to
17,267 in 2010.
Recovering from tepid sales activity in the first half of 2011, early
improvements in employment and migration resulted in a pickup in
housing demand in the second half of the year. By the end of June 2011,
year-to-date sales activity had only increased by two per cent compared
to the second half of the year, where residential sales improved by 15
per cent.
“While sales activity in 2011 remained below the long run average
by 17 per cent, monthly figures point towards the trend of this gap
narrowing,” says Sano Stante, president of CREB®.
2011 single family sales totaled 13,186, a nine per cent increase over last
year. While sales increased, listings remained low, with an annual total
of 24,245, six per cent lower than 2010 levels. The decline in listings
relative to sales pushed down inventory levels to 2,761, resulting in four
months of supply.
Meanwhile, the condominium market recorded declining sales for
nearly half of the year, but favorable pricing and improved economic
conditions pushed sales up by double digit rates for the second half of
the year. 2011 condo sales totaled 5,382, a 4 per cent increase over the
previous year. The rise in sales was complemented by an annual 12
per cent decline in listings. This helped to tighten the condominium
market, causing inventories to decline to 1,287 and months of supply to
remain just above four months.
“The demand recovery in the condominium market lagged the single
family market, as price adjustments in both the single family and
condominium markets resulted in more selection for consumers,”
Stante says. “For the first time in several years, consumers had additional
selection of single family homes at a lower price range, which directly
competed with the condominium market.”
Single family average price in 2011 reached $466,402, a one per cent
increase over last year. While there have been some strong monthly
increases, primarily due to sales in the upper end skewing the prices,
overall prices have remained fairly stable. Meanwhile, the year-end
median price of 405,000 remains at levels similar to 2010.
Condominium prices have remained persistently low in 2011, while
some of the monthly figures have been boosted by high end penthouse
sales. By the end of 2011, the average price of $287,172 remained one per
cent lower than the previous year.
“Throughout 2011, elevated levels of inventories have limited price
growth as consumers benefitted from sufficient supply of housing
to choose from; however, as these inventories drop to levels more
consistent with a balanced market, we can expect some moderate price
growth moving forward,” Stante concludes.