The inventory of homes for sale has tightened as home buyers take advantage of Calgary’s affordability.
And in Edmonton, home prices are declining as the market correction continues, according to the Royal LePage House Price Survey released on Thursday.
The report said the aggregate home price in Calgary decreased 4.3 per cent year over year to $464,542 in the third quarter. The median price of a two-storey home decreased 3.9 per cent to $508,860, while bungalows also decreased 5.8 per cent to $492,511. The median price of a condominium decreased by 3.5 per cent to $274,045 during the same period.
“Sales activity has increased as buyers take advantage of lower prices,” said Corinne Lyall, broker and owner, Royal LePage Benchmark, in a news release. “Consumer confidence improved in the last quarter compared to the beginning of the year, and inventory has tightened, causing increased buying decisions.
“Eventually, prices will increase to reflect the decline in the number of listings on the market. Interest rates are still low, so potential buyers might want to consider entering the market now.”
Heading into the fourth quarter, Royal LePage forecasts that the aggregate price of a home in Calgary will decrease 2.4 per cent year over year to $465,007, which is a 0.1 per cent increase compared to the third quarter.
In Edmonton, the median price of a home decreased 2.4 per cent year over year to $369,879 in the third quarter. The median price of a two-storey home decreased 0.7 per cent to $426,409 and the median price of a condominium decreased 6.8 per cent to $217,649. In the same period, the median price of a bungalow decreased 4.0 per cent to $366,259.
“There was sales momentum during July and the beginning of August, but that slowed due to uncertainty as the federal election approaches,” said Tom Shearer, broker and owner, Royal LePage Noralta Real Estate. “I’m curious to see how the government’s homeowner incentive program will affect us, because of the affordability in our market.
“New home buyers can afford a really nice, comfortable house with a yard, barbecue, and garage. The dream of home ownership is alive and well in Edmonton.”
Going into the fourth quarter, Royal LePage forecasts that the aggregate price of a home in Edmonton will decrease 2.4 per cent year over year to $369,509, which is a 0.1 per cent decrease compared to the third quarter.
Mario Toneguzzi is a Troy Media business reporter based in Calgary.