Modest growth awaits the Calgary and Edmonton housing markets this year, according to the latest market forecast by Royal LePage.
Despite the slow recovery posted by Calgary's real estate market last year, the region saw a 2.1% increase in the aggregate price of local homes during the last six months of 2019.
In terms of housing type, the median prices of two-storey homes, bungalows, and condominiums decreased over the year by 1%, 4.1%, and 6.9%, respectively.
Despite this, the overall sales in Calgary have improved, and inventory has gone down in both detached houses and townhomes, said Corinne Lyall from Royal LePage Benchmark.
"Buyers are taking advantage of reduced prices, primarily in the single-family home segment. There is still a surplus of condos available offering an excellent choice for buyers looking at turnkey properties with little maintenance," Lyall said.
The past year was also not as vibrant in Edmonton, where house prices remained relatively flat during the fourth quarter of 2019.
Prices for a standard two-storey home increased by 1.2% over the year, while bungalow values decreased by 5.1%. Condominiums, on the other hand, witnessed a marginal 0.3% growth in prices during the same period.
While Edmonton is expected to see moderate growth in sales this spring, price gains are poised to remain modest for the rest of the year, said Tom Shearer from Royal LePage Noralta Real Estate.
"Homebuyers in Edmonton have adjusted to the mortgage stress test and sellers are making appropriate compromises. Sellers are optimistic when meeting buyers that they are ready to make a purchase," he said.
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