Ample supply leaves housing prices in Calgary flat: report
Calgary’s housing market remained generally flat in the first quarter because of an ample housing supply, says a report released Thursday by Royal Lepage.
Average prices for detached bungalows increased a modest 1.9 per cent year over year to $422,989, the result of a lack of inventory, it said.
But Calgary’s standard two-storey homes and standard condominiums witnessed modest price declines of 1.2 per cent and 2.6 per cent, respectively, “as demand was met with a sufficient amount of listings.”
The average price for standard two-storey homes was $418,233 in the first quarter and $248,111 for a standard condo.
“Calgary is seeing strong demand from buyers who are taking advantage of low mortgage rates but since the inventory is available, there has been no upward pressure on house prices. Calgary is in a balanced market,” said Ted Zaharko, broker and owner of Royal Lepage Foothills, in a statement.
“However, as the quarter drew to a close, inventory began to fall and we started to see an increase in multiple offer situations.”
According to the Calgary Real Estate Board, residential MLS sales in the first three months of this year in the city were up 7.32 per cent from a year ago to 4,970 transactions and the average sale price increased by 1.79 per cent to $416,679.
Meanwhile, the 19th Annual RBC Homeownership Poll, also released Thursday, said Albertans lead the country in saying now is the time to get into the housing market (69 per cent compared with 59 per cent nationally) rather than waiting until next year (31 per cent compared with 41 per cent nationally).
More than half of Albertans (55 per cent) surveyed say current housing conditions reflect a buyer’s market, a sentiment that leads the rest of Canada (38 per cent).
This mood is underscored by a higher-than-average appetite to buy a home within the next two years (31 per cent compared with 27 per cent nationally), said RBC.
“Albertans have long-standing confidence in the real estate market and see the market shifting in favour of buyers, leading to greater likelihood to buy a home in the near term,” said Don Peard, vice-president, Mortgage Specialists, RBC, in a statement.