Slight Growth in Store for Prices of Calgary Homes

Posted by Alan Zunec on Tuesday, December 28th, 2010 at 8:16am.

Prices for homes in the Calgary area are expected to increase in a range between five and seven percent, per the Conference Board of Canada. According to the CBC’s Metro Resale Index, which was released December 20, average price for a home selling in the city this past November was $397,239. This represents a one-percent increase versus October. When adjusted for seasonality, November MLS sales saw a hike of 8.6 percent over the previous month to a total of 21,017 units.

Christina Hagerty, a realtor with Calgary’s Re/Max Realty Professionals, advised that in the early months of 2010, experts predicted an effect from the large number of first-time homebuyers in the market. Sales were extraordinarily strong for homes in the range between $400,000 and $500,000. Upscale homes also sold well during the third quarter of this year.

Hagerty commented that the market has been supported mainly by two types of clients: People buying for the first time, as well as those hoping to trade up from their current properties.

The CBC predicted that during the short term, the areas of Saskatoon, Montreal, Gatineau, Quebec, Saguenay, Trois-Rivieres and Sherbrooke would see growth of seven percent and more. Areas poised for growth in the range of five and seven percent include Vancouver, the Fraser Valley, Victoria, Newfoundland, Halifax, Winnipeg and Regina.

Single-family home sales totaled 891 in November, with an average price around $455,460. This represents a tiny increase versus October, in which 888 homes in this category sold at an average price of $444,744.

The number of condominiums sold in November (310) was exactly the same as October. However, the average November sale price of $284,667 was down marginally versus October’s average price of $287,793.

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