A significant proportion of Calgary’s renting population might choose to enter home ownership soon, according to the latest Royal LePage House Price Survey.
“Although our resale market is still challenged, rental vacancy rates are low, and rent is expected to go up 4% this year. This may contribute to more renters deciding to become homeowners instead, and specifically condominiums,” Royal LePage Benchmark broker and owner Corinne Lyall said.
“We see this is already happening in the condo market and is expected to continue.”
This will be partially motivated by increasing demand in some districts.
“Fewer new listings are resulting in some multiple offers for properties in desirable neighbourhoods that are priced right. That said, this activity is being spurred by price reductions and recently decreased interest rates,” Lyall explained, predicting that the aggregate price might decrease by 0.5% from the first quarter to the second quarter, reaching $466,727.
“Despite fewer properties being listed, our inventory is still high and there are many options for buyers who are looking. As well, I imagine that will shift as we are moving into our Spring market when sellers start preparing to move before the end of Summer.”
Another major contributor to the trend is Calgary’s considerable affordability, especially when compared to Toronto and Vancouver. The city’s aggregate home price decreased by 1.5% annually, down to $468,974.
Average condo prices in Calgary ticked up by just 0.2% year-over-year to reach $286,453 during Q1 2019, while two-storey home values shrunk by 0.9% during the same time frame to $513,616. Bungalow prices declined further by 3.7% to end up at $490,170.
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