The aggregate price of a home in Calgary rose by 2.4 per cent in the second quarter of this year and home prices are forecast to rise 1.9 per cent over the next three months, according to the Royal LePage House Price Survey.
The report, which was released on Tuesday, said the aggregate price was $484,694 in the second quarter.
“For the better part of six months, Calgary has been caught in the crossfire of an effort to curb rapid home price appreciation in areas like Toronto and Vancouver,” said Corinne Lyall, broker and owner, Royal LePage Benchmark, in a statement. “These Canada-wide regulations, like the new OSFI stress test, have given way to many unintended side effects in stable and recovering markets, weakening purchasing power and cooling sales activity.
“Fortunately, this has allowed first-time buyers to capitalize on current conditions and find significant value in areas that are typically out of reach. Unlike many move-up buyers, first-time buyers have had more time to adjust to the new changes in lending practices. With less competition in the market, they have been able to find the property of their dreams for a lower cost.”
The aggregate price of a two-storey home and bungalow rose 3.2 per cent and 2.7 year over year to $529,545 and $515,739 respectively, while a condominium decreased by 3.1 per cent year over year to $288,036.
The report said inventory rose by 32.3 per cent from a year ago as sales dropped by 16.5 per cent.
Royal LePage forecasts the aggregate property value in Calgary to rise 1.9 per cent quarter over quarter to $493,820.
Nationally, the Royal LePage National House Price Composite, compiled from proprietary property data in 63 of the nation’s largest real estate markets, showed that the price of a home in Canada increased two per cent year over year to $613,968 in the second quarter of 2018. When broken out by housing type, the median price of a two-storey home rose 0.8 per cent year over year to $720,504, while the median price of a bungalow climbed 1.8 per cent to $512,979. At a national level, condominiums posted a significantly higher rate of appreciation when compared to the detached segment, rising 8.1 per cent year over year to $435,421.
Respected business writer Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald in various capacities, including 12 years as a senior business writer.