First-time homebuyers spark resale resurgence
By Marty Hope
By Marty Hope
Calgary HeraldJune 6, 2009
They're ba-a-a-ck!
The president of the Calgary Real Estate Board has laid much of the explanation for a resurgence in resale activity at the feet of house-buying novices.
"The spring market has received an added boost from a growing number of first-time buyers entering the market," says Bonnie Wegerich after releasing the board's activity report for May.
During the month, 1,584 single-family homes and 653 condominiums changed hands--triple the number sold in January.
For the fifth straight month, the average price of single-family homes increased, finishing May at $436,427--about $24,000 higher than in January.
On the condo side, the average price has declined for the second straight month, closing May at $275,212 after a peak of $284,056 in March.
Wegerich also noted that May brought with it the first year-over-year gain in single-family housing sales since last September.
"A pent-up demand has been building, with many first-time home buyers now taking advantage of affordable prices, record low interest rates and federal government housing incentives," she says.
While sales and prices are climbing in the detached home category, the month-end inventory continues to slide. After hitting a high of 4,369 homes in March, the total has fallen to 3,861 at the end of last month.
"The gap between supply and demand at the end of last year was pushing prices down," says Wegerich.
"But since December, we have seen five consecutive months of increases in sales while our inventory continues to trend lower. The gap has narrowed and prices are stabilizing."
Ted Zaharko, broker-owner of Royal LePage Foothills Real Estate, says that the industry appears to have turned the corner.
"Have we bottomed?I would say yes and we are now starting to level out," he says. "I think young people should be jumping in."
He adds that there are more instances of multiple offers and, in general, deals are
coming together more quickly. Board figures show that, on average, single-detached homes are on the market for 45 days before selling. In January, it was 62 days.
"You have to believe that low interest rates are a major factor for the increasing number of sales we're seeing," he says. "That's just one of a bunch of good things happening."
Oil prices are climbing, the stock markets are regaining strength, $8 billion has been announced for oilsands investment and the value of the loonie is moving up. "But you know what, I think people are just getting fed up with all the negative stuff going on. It's time to get on with things," says Zaharko.
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SINGLE-FAMILY RESALE HOMES
Sales Inventory Avg. price Days On market - January 530 4,040 $413,049 62 - February 825 4,352 $415,568 51 - March 1,086 4,369 $420,354 48 - april 1,290 4,130 $426,311 52 - May 1,584 3,861 $436,427 45
Source: Calgary real estate Board
They're ba-a-a-ck!
The president of the Calgary Real Estate Board has laid much of the explanation for a resurgence in resale activity at the feet of house-buying novices.
"The spring market has received an added boost from a growing number of first-time buyers entering the market," says Bonnie Wegerich after releasing the board's activity report for May.
During the month, 1,584 single-family homes and 653 condominiums changed hands--triple the number sold in January.
For the fifth straight month, the average price of single-family homes increased, finishing May at $436,427--about $24,000 higher than in January.
On the condo side, the average price has declined for the second straight month, closing May at $275,212 after a peak of $284,056 in March.
Wegerich also noted that May brought with it the first year-over-year gain in single-family housing sales since last September.
"A pent-up demand has been building, with many first-time home buyers now taking advantage of affordable prices, record low interest rates and federal government housing incentives," she says.
While sales and prices are climbing in the detached home category, the month-end inventory continues to slide. After hitting a high of 4,369 homes in March, the total has fallen to 3,861 at the end of last month.
"The gap between supply and demand at the end of last year was pushing prices down," says Wegerich.
"But since December, we have seen five consecutive months of increases in sales while our inventory continues to trend lower. The gap has narrowed and prices are stabilizing."
Ted Zaharko, broker-owner of Royal LePage Foothills Real Estate, says that the industry appears to have turned the corner.
"Have we bottomed?I would say yes and we are now starting to level out," he says. "I think young people should be jumping in."
He adds that there are more instances of multiple offers and, in general, deals are
coming together more quickly. Board figures show that, on average, single-detached homes are on the market for 45 days before selling. In January, it was 62 days.
"You have to believe that low interest rates are a major factor for the increasing number of sales we're seeing," he says. "That's just one of a bunch of good things happening."
Oil prices are climbing, the stock markets are regaining strength, $8 billion has been announced for oilsands investment and the value of the loonie is moving up. "But you know what, I think people are just getting fed up with all the negative stuff going on. It's time to get on with things," says Zaharko.
---------
SINGLE-FAMILY RESALE HOMES
Sales Inventory Avg. price Days On market - January 530 4,040 $413,049 62 - February 825 4,352 $415,568 51 - March 1,086 4,369 $420,354 48 - april 1,290 4,130 $426,311 52 - May 1,584 3,861 $436,427 45
Source: Calgary real estate Board
