Sales gain momentum in the first three quarters of 2011

Calgary, October 3, 2011 – According to figures released today by CREB®
(Calgary Real Estate Board), residential sales continued to gain momentum
in Calgary this year, totaling 14,832 after the first three quarters, a seven per
cent per cent rise over last year.

“Despite recent turmoil in the global economy, Calgarians are showing
confidence in the long term prospects for the city and are taking advantage
of affordable and stable home prices,” says Bob Jablonski, president-elect
of CREB®.

“Undoubtedly, there are a lot of unknowns in the world’s current financial
situation, but Calgary and Alberta may be relatively safe havens amidst
this uncertainty. Granted, gains in the housing market have been very
gradual—but we are seeing signs of improvements. Our province’s growth
is expected to outperform the national average, and this will help buoy
consumer confidence in Calgary and Alberta.”

Single family home sales totaled 1,036 for the month of September, 2011,
an eight per cent increase over last September. Year-to-date sales totaled
10,518 units a 10 per cent increase over last year. Monthly gains in listings
brings inventory to 4,753 units, a level still lower than the previous year.

“Clearly there is a market for well priced listings. In particular, we are
seeing strength in detached single family home sales. Relative affordability
in this market has meant these homes are selling faster than condominiums
and townhouses,” says Jablonski.

“And single family homes are selling closer to asking price—suggesting that
homes will move in this market, when priced right,” added Jablonski.

The average price of single family homes for the month of September, 2011
was $466,167, while the median price was $400,000. Jablonski indicated
that while prices have marginally improved compared to September 2010
figures, on a year-to-date bases both the average price and median price
have remained relatively stable.

After the first three quarters of this year, condominium sales totaled
4,314, a two per cent rise over the same period last year. “While the
increase is modest, it is a move in the right direction,” noted Jablonski,
adding that a boost in condominium sales, along with a lower number of
listings is helping to tighten this market. At the end of September, 2011,
condominium inventories totaled 2,008 units compared to 2,204 units
recorded in September 2010.

Average condominium prices reached $299,508 in September, 2011,
appearing to record a significant increase. However, the increase in price
is not caused by a general price rise, but has been pushed up by a $4 million
plus sale. In fact, both the median price of $260,000 and the year-to-date
figures continue to trend lower than figures recorded last year.

“The recent news of financial turmoil may be a shot across the bow for the
world economy, but Calgary and Alberta are relatively safe harbours in the
storm,” concludes Jablonski.