The Royal LePage House Price Survey, released October 15, showed sizeable year-over-year price increases in all housing types surveyed in Calgary.
The average price for standard condominiums recorded the highest year-over-year price increase, surging 11.8 per cent to $294,156. During the same period, the average price for detached bungalows increased 10.8 per cent to $515,844 and standard two-storey homes increased 9.2 per cent to $499,811.
“Calgary’s real estate market has been hot for the past few years and the third quarter was no exception, with meaningful price appreciation for all housing types,” said Ted Zaharko, broker and owner, Royal LePage Foothills. “Demand for homes continues to healthily outstrip supply, which is why prices continue to trend upward. There are currently just too many would-be homeowners for the number of homes available right now.”
The price increases are crowding some buyers out of the market, continued Zaharko. “Inventory for homes selling for less than $700,000 is scarce and being swept up quickly making it difficult for some buyers to find a home in the area.”
According to Zaharko, market activity has been good but could have been stronger.”The third quarter was very good in terms of unit sales, up from the same period last year. However, unit sales would be up even higher if there were more homes available on the market.”
Nationally, the average price of a home in Canada rose between 4.4 per cent and 6.1 per cent year-over-year in the third quarter of 2014. According to Royal LePage, the average price of a standard two-storey home rose 5.5 per cent to $441,714, while detached bungalows increased 6.1 per cent to $405,101. Condominiums on average showed slightly lower year-over-year gains, posting a 4.4. per cent increase to $257,377.
“In the seven years since the Canadian housing market began its recovery from the worldwide recession, home price growth has been robust, often greater than the long-term average of approximately five per cent,” said Phil Soper, president and chief executive of Royal LePage. “We are now experiencing a natural slowing in the rate of year-over-year price appreciation, with real estate markets moderating in most parts of the country, a transition to what our agents refer to as a ‘Goldilocks market,’ one that is neither too hot, nor too cold. To be clear, we expect home prices to continue to grow in the months ahead, but at a slower rate than we have seen in recent years.”
The Royal LePage House Price Survey is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.
