Calgary Housing Market coming back to sustainable levels

Calgary Real Estate market continues to show sings of slowing down in the new home sector. New housing starts in Metro Calgary has dropped by 19.1% in July 2008 when comparing to July 2007. There were 431 foundations poured for single family homes in the Calgary area, compared to 800 in July 2007. That is a difference of 46.1%. There was however a 57% increase in multiple family starts from 284 in July 2007 to 446 units in July 2008.

The Decrease in new home starts can be a direct result of the increased competition of re-sale homes and a decrease in migration to Calgary. With a total of 13,253 Active Listings on the Calgary MLS, there is stiff competition and a great selection of homes for sale. However, our Active Listing inventory has been dropping for 2 months straight, so if someone is looking to buy, now is a good time.

Builders have great selection of lots and many have great upgrade packages added as incentives as they are attempting to be competitive. With a slow down in the new home sector, a new home buyer may also wait less time for their new home to be built. Many New home builders would have a build time of almost one year in the past couple of years but now they can build one in 4-6 months. Which are more sustainable levels.

Statistics Canada reported that in June, new home prices in Calgary were nearly the same as a year ago. Calgary Property Values have also seen a slight drop from January to August with only about a 3% fluctuation. Will we see our prices drop like the in some of the US markets? Not Likely.

For your Calgary Real Estate Needs contact:

Justin Havre

CIR Realty

403-294-1500

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