Calgary Housing Market – November 2008

Today’s housing market in Calgary is not what it once was. If we go back in time, even just to the summer of 2007, the market was – for lack of a better word – insane. Thankfully, things seem to be settling down a bit, and homes seem to be becoming more affordable.

What we’re seeing happen now is a higher volume of inventory on the market (more people want to sell their homes), and a lower amount of sales (fewer people want to buy homes). This in turn creates even more inventory, and helps drive down home prices since the supply is greater than the demand.

Is it possible that the lower amount of sales is a result of the previous state of the housing market? Yes, since it’s not farfetched that many potential buyers were scared off at the peak of the market in the summer of 2007. However, as already mentioned, the market is different now, and potential buyers’ outlooks should be as well.

There is a certain amount of volatility with the Canadian economy right now, so it’s understandable if those on the market looking for a house in Calgary are being careful. It should be kept in mind, though, that being too cautious could mean missing out on some great home buying opportunities.

The following statistics for the month of October 2008 have been published by the Calgary Real Estate Board:

Single family homes in Calgary:
- Sales in October were 820, a decrease of 26.3% from October 2007
- Average single family home price was $449,100

Condominiums in Calgary:
- Sales in October were 399, a decrease of 20.4% from October 2007
- Average condo price was $289,148

If you’d like to read the full report released by the Calgary Real Estate Board, please visit their website.