But, as the information suggests, the average price can be useful in establishing trends over time, but does not indicate actual price.  The combined median price was $267,900 for February 2006 and take note that the combined median price for February 2005 was $214,900.

The Single Family average price was $342,104, the Condominium average price was $217,181  and the Mobile Home average price was $37,417. Be keenly aware that these averages constitute new and used homes which do have distinct variances. New homes would have the additional cost of GST applied whereas GST does not apply to the sale of an existing home consequently a price variance exists when closely analyzing statistics.

A full 44 per cent of the February sales sold above the List Price, 15 per cent showed that the Sale Price equaled the List Price, and 41 per cent sold below the List Price. A manual calculation shows an average of 20 or so price reductions occur on a daily basis. Why are home sellers reducing their price in this HOT market?  Price sensitivity is still a factor as it appears anything that is not priced accordingly reflects a price reduction within days of listing.  That would lead to the conclusion that buyers are doing their due diligence when it comes to reviewing past sales and current over priced listings.  Where they are falling short is the cumulative frenzy that occurs as each new listing hits the MLS System. They immediately enter the competition of offers and the price is once more driven upward and a statistic is born.

So then, if 41 per cent of our homes sold below List Price, how tough is the Calgary real estate market?  An unrelenting demand is eroding our starter price ranges.  The bulk of the February volume occurred in the $300,000 - $500,000 price range and the $200,000  - $300,000 price range came in second. The under $199,900 price range totaled 154 sales out of our monthly sales total of  3,060 units.  These numbers indicate a huge stress on the under $300,000 price range which manifests itself in the recent surge of condominium sales.

Simply put condominiums at an average price of $217,181 are affordable by comparison to single family homes. Condominiums outside of the downtown core are still offering great value by comparison to the walking distance concept of living. Quite possibly we must review alternatives and accept the C Train as part of our lives and breathe easy physically and financially in suburbia. Both are very attractive life styles and I hear the praise and justification of both choices on a regular basis. By comparison to Vancouver or Toronto the 22X and our airport districts are pretty much Downtown Cowtown!  CL