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Thursday, November 20, 2008

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Thursday, November 20, 2008

Houses To Buy In Calgary - Get Informed Before You Buy   by Lynn MacKenzie

The average sale price of a single family home in Calgary increased by $72,000 in 2007 compared to the previous year while the average price of a condo increased by almost $53,000. The average price for a single family home in Calgary for 2007 was up 17.94 percent from 2006 averaging $472,000. What should we expect in 2008?

There will be a 5 per cent drop in single family listings in Calgary compared to that of 2007 and sales will also drop by 5 per cent. The average single family home should increase by 5 per cent to approximately $495,800.

There will be a 5 per cent drop in listings in the Calgary condo market compared to that of 2007 and condo sales will drop 5 per cent as well over 2007. The average condominium price should rise by 6 per cent to approximately $335,300.

It is expected that listings in towns surrounding Calgary will drop by 5 per cent over 2007 and sales will drop by 5 per cent as well over 2007. The average price for these communities should rise by 5 per cent to approximately $396,000.

The way listings are fluctuating it is predicted that the first part of 2008 might be a bit of a roller coaster ride but should move closer to normal market conditions.

Why did the house prices in the Calgary real estate market soften?

Simple, supply and demand. Closer to the end of 2007 Calgary's listing inventory exceeded 5.5 months of supply. This means that if there were the same number of buyers as in the past month it would take 5.5 months to sell what's on the market. Normally is takes about 2-3.5 months to sell the average home. This increase in inventory has made it a strong buyers market in the second half of 2007.

Many buyers planned to take advantage of the real estate boom by purchasing new construction condos and houses to buy in Calgary. With in influx of properties on the market buyers could be more selective when deciding to purchase. This hesitation and the increase number of properties has slowed down the resale real estate market. We've seen builders lowering their prices for units below what they were priced at for the previous year.

It is speculated that over forty percent of properties listed for sale on the Multiple Listing Service are either vacant or tenant occupied. This indicates that a lot of investors don't want to remain investors anymore.

Source:

Lynn MacKenzie is a former realtor and owner of MyCalgaryListing.com, one of Canada's most impressive FSBO resources. Lynn is an active consultant and author about the growing For Sale By Owner industry.

http://www.goarticles.com/cgi-bin/showa.cgi?C=782350