Calgary property prices are dropping despite a rise in real estate sales, according to the latest figures from Royal LePage.
Despite an increase in sales, inventory in new and resale housing markets is still putting downward pressure on Calgary property prices, a boon for buyers, including overseas property investors, but not for sellers.
The latest Royal LePage House Price Survey says the aggregate home price in Calgary’s MLS market decreased 4.3 per cent year over year to $464,542 in the third quarter of 2019.
By housing type, the median price of a two-storey home decreased 3.9 per cent year over year to $508,860, while bungalows decreased 5.8 per cent year over year to $492,511. The median price of a condominium decreased 3.5 per cent year over year 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. ‘Consumer confidence improved in the last quarter compared to the beginning of the year, and inventory has tightened, causing increased buying decisions.’
The inventory numbers have declined from historic highs and Lyall expects the window of opportunity to purchase a home at reduced prices may be closing.
‘Eventually, Calgary property prices will increase to reflect the decline in the number of listings on the market,’ she says. ‘Interest rates are still low, so potential buyers might want to consider entering the market now.’
Looking to the fourth quarter of 2019, 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 of 2019.
Nationally, the aggregate price of a home in Canada continued to post steady year over year gains during the third quarter of 2019 as the real estate market sustained its recovery from the significant downturn of 2018 and early 2019, following the introduction of the federal mortgage stress test.