What’s the difference between living in Calgary and Edmonton when it comes to home prices?
About $100,000.
A report released on Monday by the Canadian Real Estate Association indicated that the benchmark price, which is reflected in the typical home sold in a market, was $424,200 in Calgary in September and $326,700 in Edmonton.
The association said the aggregate price of 18 major centres in Canada was $623,800, which was skewed by the much higher prices in Toronto and Vancouver.
For Calgary, the benchmark price was down 2.65 per cent from a year ago and off by 5.84 per cent from three years ago. However, the price when compared to five years ago is 3.28 per cent higher.
For Edmonton, the benchmark price was down 2.60 per cent from a year ago and off by 4.93 per cent from three years ago. However, the price when compared to five years ago was up 0.11 per cent.
Nationally, prices have risen 2.28 per cent from last year, by 28.5 per cent from three years ago and by 44.49 per cent from five years ago.
In September, there were 35,939 MLS sales in Canada, down 8.9 per cent year over year.
“The balance between the number of home buyers and suitable homes varies depending on location, housing type and price range,” said CREA president Barb Sukkau. “Differences in market balance will likely come into sharper focus as interest rates rise and cause this year’s new mortgage stress-test to become even more restrictive.”
“Sales activity may get all the press but it’s the balance between that and the number of homes for sale that sets the tone for pricing environment,” said Gregory Klump, CREA’s chief economist. “In markets with an abundant supply of homes and slower sales activity, buyers have the upper hand when it comes to negotiations over price. However, in places where buyers are keen to make a purchase but there’s a shortage of homes for sale, sellers are in the driver’s seat when it comes to price. It will be interesting to see how supply and demand respond to rising interest rates amid this year’s new mortgage stress-test.”
CREA said the national sales-to-new listings ratio eased to 54.4 per cent in September compared to 56.2 per cent in July and August. The long-term average for this measure of market balance is 53.4 per cent.
Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.
The views, opinions and positions expressed by columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of our publication.
