Calgary Housing Market Reveals House Prices Still Rising
Strong demand, coupled with low inventory has recently pushed Calgary home prices higher, according to a data released by Royal LePage. In its recent Market Survey Forecast and House Price Survey for the second quarter, the real estate firm revealed a year-over-year increase of 5.9% in prices of detached bungalows to $457,889; an increase of 6% for condominium prices to $261,933; and for standard 2-storey homes an increase of 6.7% to $453,789.
According to broker and owner of Royal LePage Foothills, Ted Zaharko, the low inventory of Calgary houses for all categories has driven prices upward. He said that potential buyers swarm the market once a listing comes to the market resulting in multiple offers. Zaharko further said that unsuccessful bungalow home buyers spill over to the condominium market (because of the comparable price point), causing the inventory in that market to be tightened as well.
In a statement, Zaharko said the “irregular activity” in the Calgary housing market caused by the recent Calgary floods in Calgary may be short-term, but will not cause a long-term effect on sales and prices, which he forecasts to continue to rise.
For the second quarter, a recent report revealed an increase of 2.7% in the national year-over-year average prices for both detached bungalows and standard 2-storey homes, to $386,547 and $419,614, respectively. For the same period, average prices for standard condominiums increased by 1.2% to $248,750.
For this year, the average year-over-year house prices in Calgary is forecast by Royal LePage to increase by 6.5% to $439,000. The real estate firm also made a forecast of 3.3% increase in sales to 27,500 transactions in Calgary. The real estate firm's forecast on the national average house prices for the same period is an increase of 3% to $374,650 and a decline of 5.0% in sales to 430,500 units.
The Calgary Real Estate Board (CREB®), in its year-to-date report until July 8, revealed an increase of 4.71% in MLS® sales to 12,763. The report also showed an increase of 4.99% in median price to $400,000 and an increase of 6.75% in average price to $458,371. These sources all confirm the headline that Strong Demand and Low Inventory Push Calgary Home Prices Higher.
Courtesy of: Calgary Herald
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