jump to navigation

Game Over for First Time Home Buyer? March 18, 2008

Posted by DustinRJay in Calgary real estate, supply and demand.
Tags: , , , , ,
20 comments

Single family home sales have dropped off dramatically in Calgary year over year.  Therefore, it’s difficult to determine if averages and medians are representative of the direction of the market or reflective of changes in composition of the sales mix. 

The following graph illustrates the year over year change in sales volume by price range:

Change in Calgary SFH Sales Mix

 It illustrates that:

  • For the first time home buyer market, single family home sales volumes have experienced significant deterioration
  • Higher-end ($600,000+) single family home sales volumes have held steady
  • Average and medians, although extremely useful, are not reflective of the health of the entire real estate market due to changes in the sales mix

As an aside, things in naturally occurring populations typically lie in a log normal distribution (including distribution of reserves in oilfields).  Hence, it comes as no suprise that things like household income and also house prices also lie in a log normal distribution.

Advertisements