The average price of a single-family home in Calgary last month was $455,399, up 2.4% from a year earlier, but that was largely due to a rise in the number of luxury home sales, according to CREB’s monthly report.
Still, the lack of price gains in Calgary’s home prices in the past few years and the strength of economic fundamentals have begun to spur increased activity lately, CREB President Sano Stante said in a news release.
Single-family home sales totalled 988 in October, up 11.4% from the 887 a year earlier. Condo sales were up 19.9%, rising from 307 to 368 over the previous 12 months. Townhouses should the largest increase in sales, up 29.6% from 230 in October 2010 to 298 last month.
“A boost in full-time jobs throughout the year is gradually translating into improved sales in the real estate sector,” Stante said. “Consumers are taking advantage of price stability and a healthy variety of selection. While these gains are moderate, we are set to outpace 2010 sales.”
While some markets elsewhere in the country, such as Vancouver, have been faced with warnings of a real estate bubble, that’s hardly the case in Calgary.
The Teranet-National Bank House Price Index in September noted Calgary home prices were still about 11% off their all-time high in August 2007.
But that affordability, combined with job growth, has brought many buyers back into the market in recent months, Stante said.
“Consumers are feeling more confident about the local real estate market,” he added.
The average condo price in Calgary decreased compared to a year ago, slipping from $287,808 in October 2010 to $282,903 last month, down 1.7%. But CREB said that drop is related to an increase in sales in unites priced under $200,000, rather than any real decrease in value for condo properties.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate