Changing economic and market conditions have spurred the Calgary Real Estate Board to significantly revise downward its annual forecast for MLS sales.
In its August market update, CREB predicts 13,100 singlefamily home sales for the year. While that’s an increase of 7.7 per cent over 2010, it’s down from the 14,500 sales predicted in its annual forecast, which was released in January.
Condo sales are now expected to decline 1.51 per cent, with 5,100 forecast – CREB’s January numbers had called for 6,000 sales, a 15.8 per cent year-over-year increase.
The new numbers suggest an average single-family sale price of $470,000, down from $480,000 predicted in January, but still 1.89 per cent higher than the average price in 2010.
Condo prices, meanwhile, are expected to rise 0.04 per cent, with an average price of $290,000. CREB forecast an average price of $295,900 in January.
“Consumers no longer have a sense of urgency, but are looking for value and spending time researching and viewing more options in the marketplace,” says the latest update.
Year-to-date until the end of July, there have been 8,380 single-family MLS sales in Calgary for an average price of $469,902. Sales are up eight per cent from the same period last year, while the price has increased by 0.56 per cent.
There have been 3.418 condo sales for an average price of $288,548. Sales are down 2.73 per cent year-over-year, while the price has also dropped by 1.22 per cent.
“Trouble in the U.S. and European economies could result in lower than expected economic growth and place downward pressure on commodity prices,” says CREB’s latest market update.
“This will dampen growth in our resource-driven sector and hamper gains in consumer confidence. Such uncertainty may cause consumers in Calgary to delay decisions on purchasing a home, limiting growth in the housing market.”
Last week’s turmoil in the stock markets has “severely shaken” Canadian consumers’ confidence in the economy, causing a significant drop in the TNS Canadian Consumer Confidence Index.
After a slight drop in July, in the wake of the U.S. debt crisis and all-around bad economic news, the Index dropped almost a full two points in August, from 99.7 to 97.6, wiping out any optimism Canadians showed in the economy.
“Canadians have clearly been spooked by last week’s ups and downs in the stock market,” said Norman BaillieDavid, Vice President of TNS Canada.
“These gyrations (in the markets) are having a significant impact on Canadians’ view of the economy, as well as their own prospects.
Read more: http://www.calgaryherald.com/business/Real+estate+board+trims+sales+forecast/5276857/story.html#ixzz1VVhM5cAa
In its August market update, CREB predicts 13,100 singlefamily home sales for the year. While that’s an increase of 7.7 per cent over 2010, it’s down from the 14,500 sales predicted in its annual forecast, which was released in January.
Condo sales are now expected to decline 1.51 per cent, with 5,100 forecast – CREB’s January numbers had called for 6,000 sales, a 15.8 per cent year-over-year increase.
The new numbers suggest an average single-family sale price of $470,000, down from $480,000 predicted in January, but still 1.89 per cent higher than the average price in 2010.
Condo prices, meanwhile, are expected to rise 0.04 per cent, with an average price of $290,000. CREB forecast an average price of $295,900 in January.
“Consumers no longer have a sense of urgency, but are looking for value and spending time researching and viewing more options in the marketplace,” says the latest update.
Year-to-date until the end of July, there have been 8,380 single-family MLS sales in Calgary for an average price of $469,902. Sales are up eight per cent from the same period last year, while the price has increased by 0.56 per cent.
There have been 3.418 condo sales for an average price of $288,548. Sales are down 2.73 per cent year-over-year, while the price has also dropped by 1.22 per cent.
“Trouble in the U.S. and European economies could result in lower than expected economic growth and place downward pressure on commodity prices,” says CREB’s latest market update.
“This will dampen growth in our resource-driven sector and hamper gains in consumer confidence. Such uncertainty may cause consumers in Calgary to delay decisions on purchasing a home, limiting growth in the housing market.”
Last week’s turmoil in the stock markets has “severely shaken” Canadian consumers’ confidence in the economy, causing a significant drop in the TNS Canadian Consumer Confidence Index.
After a slight drop in July, in the wake of the U.S. debt crisis and all-around bad economic news, the Index dropped almost a full two points in August, from 99.7 to 97.6, wiping out any optimism Canadians showed in the economy.
“Canadians have clearly been spooked by last week’s ups and downs in the stock market,” said Norman BaillieDavid, Vice President of TNS Canada.
“These gyrations (in the markets) are having a significant impact on Canadians’ view of the economy, as well as their own prospects.
Read more: http://www.calgaryherald.com/business/Real+estate+board+trims+sales+forecast/5276857/story.html#ixzz1VVhM5cAa
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