Single-family, condo sales take June nosedive

Jul 2, 2010, Single-family, condo sales take June nosedive

MLS sales plunged in June in Calgary in both the single-family home market and condomiminums.

Statistics released today by the Calgary Real Estate Board showed sales in the single-family home category of 1,061 for the month plummeted by 42.24 per cent while condominium transactions of 445 declined by 39.70 per cent compared with year ago levels.

While the market continued to add new listings, average sale prices inched upwards – by 7.79 per cent for single-family homes to $481,964 and by 2.33 per cent for condos to $292,238.

“We are seeing continued moderation in Calgary’s home sales in the face of higher mortgage rates, increased inventory levels and a decreasing number of first-time homebuyers entering the market,” said Diane Scott, president of the Calgary Real Estate Board. “Our sales trends in June reflect much of what we saw in May.

“Changes to mortgage rules meant a good portion of homebuyers wanted to get in before the new regulations took effect in April. This, along with rising interest rates on the horizon, pulled forward sales we might have expected in May and June.”

She said the one market that seems to be bucking this moderating trend is the luxury or higher-end market. For example, in the first six months of this year, 187 single-family homes in the city sold for $1 million or more, compared with 132 in 2009.

New listings in June rose by 21.79 per cent for single-family homes to 2,733 and by 16.94 per cent in condos to 1,084.

In the towns surrounding Calgary market, overall sales dropped by 35.38 per cent from a year ago to 305 sales with an average price of $378,237 which was up 6.75 per cent. The country residential market which includes acreages saw sales drop by 30.23 per cent to 60 but the average price jump 27.57 per cent to $943,400.

“We had an impressive housing recovery in the late spring and summer of 2009. As expected this rate of recovery will moderate in the latter half of 2010 in the face of rising mortgage rates and slowing demand—keeping Calgary’s housing market in balance,” said Scott.

“Nonetheless the economic outlook for Calgary and for Canada remains upbeat and should ensure consumer confidence remains in positive territory for the balance of 2010.”

June was the second consecutive month that year-over-year sales for both single-family homes and condos have been down.

In May, there were 1,262 single-family home sales for an average price of $483,240 and 518 condo sales for an average of $304,662.

By Mario Toneguzzi, Calgary Herald