Although reluctant to say the resale housing market is in recovery mode, the city’s real estate industry is, nonetheless, packing up the resuscitation equipment.

Last month’s gains in both sales and prices of homes sold through the Calgary Real Estate Board were the first signs that residential real estate was, perhaps, returning to a more balanced market — and that means a more positive prognosis for the future, says board president Bonnie Wegerich.

“It’s still too early to say it’s the bottom of the market, but it is trending that way,” she says. “Average and median prices are stabilizing, and it’s not taking as long to sell a home.”

The 1,086 single-family home sales posted in March were still down more than 23 per cent over the 1,418 posted for the same month in 2008, but they’re up from just 825 sales this February.

The average price of single-family homes sold last month in Calgary, alone, was $420,354, down 11.41 per cent over the March 2008 average of $474,513, but up from $415,568 in February.

The median price is exactly the same this month as last at $375,000, compared to $420,000 last March. That price reflects the mid-point between the least and most expensive home sold during that time, meaning half the buyers bought homes that cost more than the median price, and half bought homes for less.

Inventory levels, though still high, are going down — another positive, says Wegerich.

As of the end of March, 4,369 homes were in the inventory, compared to 5,957 for the same month last year.

“It’s not taking as long to sell a home today, either,” she says. The average time a home was on the market before it sold last month was 48 days, compared to 51 days in February and 62 in January.
The reasons for the optimism are a combination of factors, she says. “It’s a more normal market, but also, life goes on. There’s a high employment rate in Calgary, people have never seen affordability this good with near record interest rates, there’s better choice, and people are saying it’s okay.”

Laurie Stewart, realtor with Royal LePage Ram Realty, says things are hopping at her office. “We’ve sold more homes in the last three weeks than we’ve done in three months. People are now feeling more comfortable with the fact that the sky is not falling, and it’s a great opportunity to move up right now with interest rates and prices as they are.”

The busier market could simply be the norm, says Lai Sing Louie, senior market analyst with the Calgary branch of Canada Mortgage and Housing Corp.

“It’s spring — traditionally the busiest season for home sales — and there is still the economic backdrop of some dark clouds on the horizon. There are still job losses, and concern that they will impact housing demand.”

However, he says, “we project that before the end of the year, the market should be more balanced,” and the low interest rates combined with some federal initiatives to help first-time buyers have had a positive impact already.

“We’re hopeful that the traditionally busier spring season will continue into summer.”

Stewart, who specializes in move-up and corporate clients, says the low interest rates have helped those markets as well. “If people have a home they’ve lived in for more than 16 months (before the prices skyrocketed), they have realized great gains in the value of their homes, in spite of the fact that prices have dropped since the highs. They’ve probably gone up 60 per cent, so they have pretty good equity in their property,” says Stewart. “It’s a great opportunity for them to move up to the next level.”

House prices are stabilizing, too, so people know the homes likely won’t sell for much less, yet they’re still a good price to buy, Stewart says.

Although the corporate traffic (job transfers) has settled down, “Calgary is still a corporate city and it’s still the place to be,” she says. “People are still coming here, and they’re buying all across the board, all over the city and in all price ranges.”


She and realtor partner Joe Buggie are seeing as many as 30 to 35 groups going through their listed homes on a weekend. “That means there’s activity with other realtors as well. It’s not just us.”