Oct 19, 2010, Calgary house prices stabilize

Calgary house prices stabilized in the third quarter and now stand close to year-ago levels, according to the Royal LePage House Price Survey released today.

Year-over-year prices for detached bungalows rose 2.7 per cent in the third quarter to $412,744. Meanwhile, year-over-year prices for standard condominiums and standard two-storey homes declined slightly, by 1.1 per cent to $246,656 and 1.0 per cent to $410,489 respectively.

“After peaking in early 2010, house prices in Calgary softened in the third quarter,” said Ted Zaharko, broker and owner, Royal LePage Foothills. “In spring 2009, we began to experience a snap recovery as buyers took advantage of the opportunities that the 2008 downturn provided.

“That rapid recovery drove prices up and continued until the spring of this year. Prices have since fallen from their early-year peak as stability and balance have returned to the market.”

Zaharko said the Calgary housing market is a unique one.

“When conditions such as low interest rates or price decreases occur in Calgary, the market reacts quickly and in a significant way,” he said. “However, even though the downturn did have a considerable impact on us, the Alberta economy and its housing market have always been, and will continue to be, among the strongest in the country. In fact, according to the latest TD economic report, Alberta is expected to lead the Canadian economy through 2011. In the meantime, as we approach the end of 2010, expect to see the Calgary housing market stabilize and balance out.”

In the third quarter, the average price of a detached bungalow in Canada was up 4.6 per cent to $324,531, compared to a year ago. Over the same period, standard two-storey homes rose 4.4 per cent to $360,329 while standard condominiums rose 3.9 per cent to $226,481.

By Mario Toneguzzi, Calgary Herald