Home prices in Calgary and Edmonton increased in the fourth quarter of 2018, according to a report released on Friday by real estate company Royal LePage.
According to the Royal LePage House Price Survey, the aggregate home price in Calgary increased 1.3 per cent year over year to $484,462 in the fourth quarter of 2018. The aggregate price of a home in Edmonton increased in the fourth quarter of 2018, rising 1.6 per cent year over year to $385,550.
When broken out by housing type in Calgary, the median price of a two-storey home rose 2.0 per cent $530,840. Bungalows also rose in value in the fourth quarter, increasing 1.7 per cent year over year to $517,573. Meanwhile, condominiums decreased 3.5 per cent year over year to $279,745, according to the report.
“Calgary’s real estate market in 2018 was affected by a confluence of lacklustre oil prices, new mortgage rules, and rising interest rates. Although we saw some market improvement in full-time employment and increased migration from the last 12 to 18 months, the market continues with higher than normal inventory levels and slower sales, which limits price appreciation growth,” said Corinne Lyall, broker and owner, Royal LePage Benchmark.
“It’s important to note that interest rates are still low despite the increases seen during last year, and as buyers adapt to the mortgage changes, we are starting to see some demand return. Currently, with increasing residential vacancy rates due to migration and higher downtown office vacancies, there are some attractive opportunities for investors and companies considering a move to Calgary.”
In Edmonton, when broken out by housing type, the median price of a two-storey home and bungalow increased 1.2 per cent and 3.1 per cent year over year to $439,917 and $385,745, respectively. Meanwhile, the median price of a condominium fell 0.6 per cent year over year to $232,847.
“The region remains a buyer’s market,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate in Edmonton. “Would-be buyers are hesitant to enter the market over concern for the future of Alberta’s energy sector while also trying to raise the downpayment required to meet the 2018 mortgage rules.
“Homes that are not priced properly from the onset become increasingly difficult to sell after languishing on the market,” added Shearer. “It’s crucial sellers have a strategy from day one to best position.”