MARKET BLOOMS

City's housing market blooms in June
Condo market posts first gain of the year
By Mario Toneguzzi, Calgary Herald
July 5, 2011

Calgary's residential real estate market experienced a significant late spring upswing.

Single-family MLS sales last month finished up 32 per cent, to 1,398 homes, from June 2010's 1,059 transactions, according to data released Monday by the Calgary Real Estate Board.

Condo sales -up almost 31 per cent -were up year-overyear for the first time since April 2010. The real estate board recorded 581 sales last month, compared to 445 in June 2010.

While sale prices continue to lag and 2011 sales are up only two per cent over the first six months of 2010, the late spring swoon has brought tempered optimism of a continued turnaround.

"We had a late spring maret this year. It's all starting to come together in June," said Sano Stante, president of the Calgary Real Estate Board.

"Last year we had an exuberant market early on and it died in June.

"So to draw comparisons year-to-year for that month shows an exaggeration of the trend."

The average sale price for a single-family home in June remained almost flat, falling to $479,580 from $481,960 a year ago.

Condominium prices, on average, rose to $296,501, the highest since May 2010, from $292,182.

On a year-to-date basis, single-family home sales for the first six months are up more than 5.5 per cent, while condo sales are down almost five per cent.

"Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales activity remains below longterm averages," the real estate board said in a statement.

However, there are signs the local housing market is starting to find its footing, said Stante.

"This gradual levelling has been fuelled by growth in employment, and in particular growth in full-time jobs," he said.

Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the next."

Dan Sumner, an economist with ATB Financial in Calgary, said a year-over-year comparison may be misleading as to the strength of the Calgary housing market given that June is often one of the busiest months for sales, even though the same month last year was abnormally slow.

"Fuelling sales is a stronger economy specifically in Alberta, which feeds through into consumer confidence and that's making Albertans more comfortable with home purchases again," he said, adding low interest rates are also luring buyers.