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_1 N/ ^1 ~; mMario Toneguzzi, Calgary Herald
. J2 I- G6 Q8 w0 J) S6 N7 zPublished: Tuesday, August 01, 2006 / j- N- E& [; i+ M" J
Is Calgary's scorching resale housing market starting to cool off a tad?
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4 F% e% \5 S1 c! _, OPreliminary data from the Calgary Real Estate Board suggest the average combined residential sale price in July may have dropped from June, representing the first time this year that the average price has been less than the previous month.
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# f N ^# x% g6 @7 r* q: y2 }5 J8 iAccording to the Calgary Real Estate Board website as of late Monday afternoon, the average combined residential sale price of a Calgary home in July was $358,103, which is just under $10,000 less than the price in June ($367,033). Also in June a record 3,388 homes sold on the MLS system. As of Monday afternoon, 2,498 homes sold in July. And the 30-day median sale price is $330,000 compared to $334,500 in June.
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There were also 3,804 active listings as of Monday on the MLS market in the Calgary area.
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9 s: K, S0 _9 j( B. [Final official results for July will be released this week by the real estate board.
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Kevin Clark, president of the Calgary Real Estate Board, said the sale of higher priced homes has an impact both ways on the overall average price.
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"I was doing a little bit of a study of properties over a million dollars and there were 175 at the time and they were taking longer to sell. That's going to have an impact on the average price," said Clark. "We've also got nearly 30 per cent of the inventory now over 30 days on the market. That's going to have an impact on it.
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9 f% `; ]4 q: g# K9 J: N: J"So in the one sense, there's a change in the marketplace. It's interesting because some properties are still going incredibly quickly and over list (price). We're still selling about 40 per cent above list price. On the one side, I think there's people who are overpricing their properties and (they) are sitting . . . then on the other side, there are properties coming on well priced and selling very, very quickly."
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Richard Corriveau, regional economist for the Prairies and Territories for Canada Mortgage and Housing Corporation, said average sale prices dropped on a month-to-month basis for homes listed on MLS three times in 2005. It also occurred five times in 2004.
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/ A {. B5 \2 b$ e- h6 \"A lot of it just has to do with the distribution and the fact you might see some very severely high sales in the upper price ranges that inflate one month's price and if they don't occur in the following month, we just don't see that as a result," said Corriveau.
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& F& J6 e% _. {And while the average sale price may have dipped or remained relatively the same on a month-to-month basis, the July number is still much higher than the average sale price of $245,704 for July 2005.
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Corriveau said the residential market has been very strong this year as average combined residential sale prices have jumped from $289,130 in January to the current number.. c1 x, ~8 J1 N8 J3 P& B3 Z
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"Last year the market really took off over the summer and second half of the year," said Corriveau. "With that we're competing with comparatively stronger numbers over the second half of 2005 and you won't see as pronounced gains like we did the first part of this year. The year to date increase will diminish as the year progresses." |
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