MLS sales fall below pre-boom levels amid downturn
Homes harder to sell as prices slide further
Mario Toneguzzi
Calgary Herald
It is becoming increasingly difficult to sell a home in the Calgary residential real estate market.
Statistics released by the Calgary Real Estate Board on Monday show that MLS sales in November plunged compared to a year ago--and they've even dropped below levels prior to the real estate boom of the past two years. As well, average and median sale prices continue to slide as listings remain at elevated levels.
Compared to November 2007, sales in the single-family home market plunged by 39.26 per cent (to 670)while the average sale price dropped by 5.77 per cent to $435,471. The median price also dropped by 4.96 per cent to $387,300.
The condo market also saw sales compared to November 2007 plummet by 42.74 per cent(to 284) while the average sale price fell by 8.6 per cent to $285,820 and the median price decreased by 11.65 per cent to $251,800.
At the same time, active listings remain high. The month-end inventory for single-family homes was 5,083,up 1.99 per cent from a year ago while for the condo market it was 2,399, an increase of 9.24 per cent from November 2007.
Lorena McDonald, founder and owner of Home Link Design Inc., is witnessing first-hand the local real estate downturn -- but in a positive fashion. As it becomes harder to sell a home in this tough market, more potential sellers are turning to the online interior design firm which was launched at the beginning of September.
She said the company was created to give people quick and efficient online interior design services and decorating advice through the web.
"What has happened during the few months already, there has been a lot of people very interested," said McDonald.
"They're trying to get a competitive edge from other people who are trying to sell their homes," she added. "So people are uploading their photographs. They're getting a whole portfolio online and they're able to get the advice to improve the look or feel of their place."
McDonald said homeowners are also using the service because in today's tough sellers market many have decided to stay in their homes and renovate.
"Real estate obviously has slowed down. But I do feel there is an emotional tie homeowners have with their homes and even though let's say the real estate has softened and has come to a slump, people are still wanting to upgrade their home if they see they're going to be there for a long time," she said.
"And even if they're going to try and sell their home, they do find today that the buyers are quite savvy. They want something a little extra. They want to feel that they're getting something more than maybe a house down the street that's listed the same price."
The average days on the market for a single-family home to sell jumped to 55 days last month from 46 days in November 2007. In the condo market, the days on the market increased by 15.91 per cent to 51 days.
"Market activity typically slows down during the end of any year, however, this isn't a typical market, so the slowdown that we're seeing is somewhat magnified," said CREB president Ed Jensen.
"This is due to uncertainty among consumers and it isn't just affecting real estate, it's affecting all consumer spending."
MLS sales overall have been down from last year, but looking at recent months that rate of decline has slowed, said Lindsay Kendall, market analyst in Calgary for the Canada Mortgage and Housing Corp. Year-to-date sales are down 26 per cent and 30 per cent for single-family homes and condos, respectively.
"So going into 2009, we're expecting that spring buying season to really pick up and basically stabilize the market,"she said, adding the amount of active listings will decrease to come more in line with amount of demand in the market.
Mike Fotiou, with First Place Realty in Calgary, wrote on his website blog Monday that he's concerned that the spring months won't be the"save-all that many sellers are expecting it to be if the same economic conditions persist."
"Depending on how many sellers there are on the sidelines waiting to list, Calgary's real estate market could become even more unbalanced if a flood of inventory hits in the early months of 2009," he wrote.
"Metro-Calgary (single-family home) sales didn't even break the 700 mark in November--one of the lowest on record in recent years for even the seasonally slower months. Since January 2004,October and November of this year have had the lowest (single-family home) sales on record."
Fotiou said the local real estate market is not close to being a balanced one.The cur-rent month-end inventory indicates there are more than seven and eight months of supply for single-family homes and con-dos, respectively. He said the real estate board's balanced market ratio is between two to 3.5 months of supply.
Mario Toneguzzi
Calgary Herald
It is becoming increasingly difficult to sell a home in the Calgary residential real estate market.
Statistics released by the Calgary Real Estate Board on Monday show that MLS sales in November plunged compared to a year ago--and they've even dropped below levels prior to the real estate boom of the past two years. As well, average and median sale prices continue to slide as listings remain at elevated levels.
Compared to November 2007, sales in the single-family home market plunged by 39.26 per cent (to 670)while the average sale price dropped by 5.77 per cent to $435,471. The median price also dropped by 4.96 per cent to $387,300.
The condo market also saw sales compared to November 2007 plummet by 42.74 per cent(to 284) while the average sale price fell by 8.6 per cent to $285,820 and the median price decreased by 11.65 per cent to $251,800.
At the same time, active listings remain high. The month-end inventory for single-family homes was 5,083,up 1.99 per cent from a year ago while for the condo market it was 2,399, an increase of 9.24 per cent from November 2007.
Lorena McDonald, founder and owner of Home Link Design Inc., is witnessing first-hand the local real estate downturn -- but in a positive fashion. As it becomes harder to sell a home in this tough market, more potential sellers are turning to the online interior design firm which was launched at the beginning of September.
She said the company was created to give people quick and efficient online interior design services and decorating advice through the web.
"What has happened during the few months already, there has been a lot of people very interested," said McDonald.
"They're trying to get a competitive edge from other people who are trying to sell their homes," she added. "So people are uploading their photographs. They're getting a whole portfolio online and they're able to get the advice to improve the look or feel of their place."
McDonald said homeowners are also using the service because in today's tough sellers market many have decided to stay in their homes and renovate.
"Real estate obviously has slowed down. But I do feel there is an emotional tie homeowners have with their homes and even though let's say the real estate has softened and has come to a slump, people are still wanting to upgrade their home if they see they're going to be there for a long time," she said.
"And even if they're going to try and sell their home, they do find today that the buyers are quite savvy. They want something a little extra. They want to feel that they're getting something more than maybe a house down the street that's listed the same price."
The average days on the market for a single-family home to sell jumped to 55 days last month from 46 days in November 2007. In the condo market, the days on the market increased by 15.91 per cent to 51 days.
"Market activity typically slows down during the end of any year, however, this isn't a typical market, so the slowdown that we're seeing is somewhat magnified," said CREB president Ed Jensen.
"This is due to uncertainty among consumers and it isn't just affecting real estate, it's affecting all consumer spending."
MLS sales overall have been down from last year, but looking at recent months that rate of decline has slowed, said Lindsay Kendall, market analyst in Calgary for the Canada Mortgage and Housing Corp. Year-to-date sales are down 26 per cent and 30 per cent for single-family homes and condos, respectively.
"So going into 2009, we're expecting that spring buying season to really pick up and basically stabilize the market,"she said, adding the amount of active listings will decrease to come more in line with amount of demand in the market.
Mike Fotiou, with First Place Realty in Calgary, wrote on his website blog Monday that he's concerned that the spring months won't be the"save-all that many sellers are expecting it to be if the same economic conditions persist."
"Depending on how many sellers there are on the sidelines waiting to list, Calgary's real estate market could become even more unbalanced if a flood of inventory hits in the early months of 2009," he wrote.
"Metro-Calgary (single-family home) sales didn't even break the 700 mark in November--one of the lowest on record in recent years for even the seasonally slower months. Since January 2004,October and November of this year have had the lowest (single-family home) sales on record."
Fotiou said the local real estate market is not close to being a balanced one.The cur-rent month-end inventory indicates there are more than seven and eight months of supply for single-family homes and con-dos, respectively. He said the real estate board's balanced market ratio is between two to 3.5 months of supply.
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