Calgary home prices declined in the second quarter of this year despite a tightening of inventory, according to a report released on Wednesday by Royal LePage.
The real estate company’s House Price Survey found the aggregate home price in Calgary decreased five per cent year over year to $460,089 in the quarter.
The median price of a two-storey home decreased 5.3 per cent year over year to $501,623. Bungalows also decreased six per cent year over year to $484,274. The median price of a condominium decreased slightly by 0.9 per cent to $284,316.
“We had a very slow start to the spring market but it has strengthened since April as consumer confidence improved, especially after the provincial election,” said Corinne Lyall, broker and owner of Royal LePage Benchmark.
“Some sellers reconsidered listing their homes as prices pushed downward, which, in turn, has made inventory tighter. The positive news is that people are getting off the fence to buy, taking advantage of current low interest rates.”
The company is forecasting Calgary’s aggregate price to decrease 3.6 per cent from year-end 2018.
“Builders are holding back while the region continues to normalize from the OSFI (mortgage) stress test and our weakened Alberta economy recovers,” said Lyall. “We’re also seeing full-time jobs increase in some industries, and there is a favourable outlook for our GDP growth in 2020.”