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| Market Value for Assessment purposes - Factors behind the Averages |
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How is your neighborhood assessment? City wide averages show a decline in household values from a peak in
May of 2008 ($433,470) to a diminished value at year end of $373,761. The critical assessment date is July
2008 for the tax year of 2009.
Your neighborhood may be typical of the City averages but if values have fallen at a greater rate it may be
due to an abundance of listings signaling the change from a seller’s market to one of a buyer. Less desirable
locations suffer more in a down market as do homes with less tangible problems of age, condition, lot
slope , drainage, parking, design etc.
Your neighborhood may have circumstances that cause deviation from the norm. Note the three year cycle of
listings to sales and how the normal relationship between the two was falling out of balance. Some less homogeneous
neighborhoods suffered more than others.
These statistics from the Calgary Real Estate Board point out two or three key points. Firstly that the average
is just that, not identical in every neighborhood. Secondly the average consumer is being cautious "sitting
tight" which means that loses will not be realized and that we are not dealing yet with a full spectrum market.
And thirdly, that some housing types have lost more value than others, witness Condominiums being off
10%.
"Overall, I think 2008 was a reasonable year for real estate in Calgary, however, our third quarter really hurt us
for unit sales," said CREB® President, Ed Jensen. "If we look back over the past few years, 2006 was an anomaly
that presented all the opportunity to the seller. Things started off the same in 2007, but began to shift toward the
end of the second quarter, as we watched the supply versus demand gap widen; suddenly all the opportunities that
were present for the seller, were now shifting over to the buyer. 2008 basically stayed on that path, with high
supply and moderate to low demand. Currently, there are still great opportunities available to the buyer, but how
long that will last remains to be seen. Consumers are sitting tight at the moment, watching their dollars and the
media at the same time. look forward to 2009 and seeing what kind of market we'll be presented with. I don't have
a crystal ball, but I know one thing for certain, your REALTOR® is your best asset in a shifting market." Jensen
concluded.
The average price of a single family Calgary metro home in December 2008 was $417,398, showing a decrease of
6 per cent from December 2007, when the average price was $444,769, and showing a decrease of 4 per cent from
November when the average price was $435,471. The average price year-to-date was $460,327, down 3 per cent
from the 2007 year-to-date average price of $472,230. The average price of a Calgary metro condominium was
$274,919, showing a 10 per cent decrease from December 2007 when the average price was $304,719, and
showing a decrease of 4 per cent over last month, when the average price was $285,820. Average price
information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised
of widely divergent neighbourhoods or account for price differentials between geographical areas.em>
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