While average house prices in Calgary were relatively flat in the second quarter of the year, they are forecast to end 2015 down 2.4 per cent compared to 2014, according to a new report from Royal LePage.
The real estate firm’s says that in the second quarter, condo prices climbed 1.6 per cent year-over-year to an average price of $291,022. Over the same period, two-storey home values declined 3.1 per cent to $474,239 and detached bungalows were down 0.9 per cent to $496,689.
Royal LePage broker Ted Zaharko says predictions of gloom because of low oil prices or the change in the provincial government appear to be premature, as prices have only moderated slightly up to this point.
“If the previous six months are any indication, we should be more concerned about the lack of inventory than changes in average prices,” Zaharko stated in a release, adding that inventory levels posed a challenge for homebuyers after anything besides condos.
“Inventory of detached homes is reaching the low levels seen last year when Calgary was one of the country’s hottest markets,” he said. “The limited supply means that some new listings are seeing multiple offers or quick sales, however there are still well priced listings throughout the city that aren’t receiving substantial showings.”
Looking ahead, the predicted 2.4 per cent price decline for 2015 is attributed to continued “economic and political uncertainty.”
“On the flip side, interest rates are likely to remain very low for the foreseeable future while supply shortages are likely to persist. Barring an unforeseen shock, we are likely to have a balanced market throughout 2015,” said Zaharko.
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For a look at how Royal LePage’s figures frame the national picture, see our earlier coverage here.