The Calgary property market is starting to attract both Canadian and overseas property investors again as prices decline.
According to the latest Royal LePage House Price Survey, the aggregate home price in the Calgary property market was down five per cent, year-on-year, to $460,089 in the second quarter of 2019, while the median two-storey home price decreased 5.3 per cent year over year to $501,623.
The median price for a bungalow fell by six per cent to $484,274, while the median condominium price decreased slightly by 0.9 per cent to $284,316.
Aggregate Calgary property prices are calculated using a weighted average of the median values of all housing types collected. Data is provided by RPS Real Property Solutions.
Corinne Lyall, broker and owner, Royal LePage Benchmark, said: ‘We had a very slow start to the spring market, but it has strengthened since April as consumer confidence improved, especially after the provincial election. Some sellers reconsidered listing their homes as prices pushed downward, which, in turn, has made inventory tighter.’
However, she continued: ‘The positive news is that people are getting off the fence to buy, taking advantage of current low interest rates.
By the end of the year, Royal LePage expects Calgary’s aggregate price to decrease 3.6 per cent from year-end 2018.
‘Builders are holding back while the region continues to normalize from the OSFI stress test and our weakened Alberta economy recovers,’ says Lyall. ‘We’re also seeing full-time jobs increase in some industries and there is a favourable outlook for our GDP growth in 2020.’
On a national basis property is looking more positive, led by condominiums which were the fastest growing housing type nationally, with a 3.8 per cent median price increase to $452,451.
Overseas property investors may again want to consider Calgary property before it catches up with the rest of Canada.