THE SURGE

Calgary home prices continue to surge
Sustained supply imbalance pushes prices higher
BY MARIO TONEGUZZI, 
CALGARY HERALD JULY 9, 2014

CALGARY - A sustained supply imbalance is pushing residential real estate prices higher, says a new survey released Wednesday by Royal LePage.

The company’s House Price Survey and Market Survey Forecast said the Calgary market experienced strong year-over-year price increases in the second quarter of this year across all housing types.

Detached bungalows increased by 9.7 per cent to $501,200 and condominiums rose by 9.3 per cent to $286,422. Standard two-storey homes increased by 7.9 per cent to $489,589.

“Calgary has had a serious inventory shortage dating back to the beginning of 2013, which combined with strong demand from prospective homebuyers is responsible for pushing prices skyward,” said Ted Zaharko, broker and owner of Royal LePage Foothills, in a news release. “We definitely have one of the hottest real estate markets in the country right now and all housing types are performing very well. Properties are being gobbled up as soon as they hit the market.”

But Zaharko said active listings are starting to climb.

“Slowly but surely we are seeing inventory levels creep up, which is needed to satisfy the pent-up demand after a prolonged period of insufficient supply,” he said.

Royal LePage is forecasting home prices in the city to rise by 5.5 per cent over the year compared with 2013.

“Prices are already up approximately 10 per cent year to date, and we expect this to creep up a little bit more before the end of the year,” said Zaharko. “The Calgary market is vibrant and is home to a strong local economy, fueled by the oil and gas industry. We expect the healthy real estate market to continue for the rest of this year and beyond.”