Metro - Single Family - Calgary Metro sales in the single family category saw a reduction from the previous month, dropping to 1262 sales from 1352 in April.
Those 1262 sales represented a decrease of over 20% from the May 2009 figure of 1584. The median sale price of $420,000. was 7% higher than the 2009 figure of $390,000. Month end inventory of 5649 homes for sale was 46% more than the 2009 figure of 3861.
Metro - Condo - In the condo category for Calgary Metro, sales saw a drop to 518 from the April figure of 639. This year's May figure showed a 20% drop over the 2009 total of 653. May's median sale price of $279,900 was 9% higher than last year's median price. Month end inventory of condos in Metro was 2656, 36% higher than the May 2009 figure of 1952.
Outside of Calgary Metro - Sales outside of Calgary Metro on MLS showed a decrease of 10% in May, 338 vs.374 in 2009. The median sale price was $18,000. higher at $354,000 compared to $336,000 in May, 2009.
Sales activity declining month by month
The derease in sales volume over last year in Calgary metro and area is a reflection of higher interest rates currently available, the changes in mortgage qualifications for buyers, and higher asking prices for homes and condos, all of which results in a higher affordability factor. Calgary's high unemployment rate, coupled with outward migration and the perception of high and unreasonable prices, seems to have moved some buyers to the sidelines in this typically active selling season.
Buyers doing their due diligence will discover that there can be a considerable gap between asking prices and sold prices of those properties that were not realistically priced for today's market conditions. Buyers should also realize that variable rates are still close to historical lows; but those unwilling to commit to variable rates should get accustomed to the idea of dealing with 4% and 5% rates. Welcome back to the real world of real estate.
