In the last quarter of last year, the average price of a detached bungalow in Calgary increased 6.4 per cent year-over-year to $468,967, while two-storey home prices went up 6.1 per cent to $461,089, and condo prices rose 7.0 per cent to $269,778.
According to Royal LePage agent Ted Zaharko, there are three reasons for the growth.
“…a long-standing shortage of inventory, the steady influx of individuals to the area and the city’s healthy economy,” Zaharko said.
And while sales were also healthy in the region, Zaharko said they would have been even healthier if there was the inventory to meet demand.
“There is a tremendous amount of pent up demand from would be buyers looking to purchase a home in Calgary. There are simply not enough homes for sale to meet the needs of the market,” he said.
With continued supply scarcity expected in the year ahead, Royal LePage predicts that average prices for Calgary homes will increase by 5.1 per cent in 2014 (tweet this). The total number of home trading hands is predicted to increase by 5.0 per cent, but this will still not be enough to satisfy the demand from locals, new Canadians and migrants from other provinces, the report says.
“Unless there is a surge in the number of homes available, it is likely that we continue to see rising prices and bidding wars in 2014,” concluded Zaharko.
For a look at Royal LePage’s national housing forecast, click here.