Home prices increase as a whole in Calgary — but condos slump further

Land transfer tax not the solution for Alberta's fiscal woes, Calgary economist says

The aggregate home price in Calgary rose by 1.3 per cent in the fourth quarter of 2018, according to Royal LePage Real Estate Services. 

Royal Lepage arrived at the number by calculating the weighted average price of all housing types in the city. 

The median price of a two-storey home rose by two per cent, year over year, to $530,840, while bungalows inched up by 1.7 per cent to $517,573.

Condos, however, continued to slump, losing 3.5 per cent for a median price to $279,745.

"Calgary's real estate market in 2018 was affected by a confluence of lacklustre oil prices, new mortgage rules, and rising interest rates," Corinne Lyall with Royal LePage Benchmark said in a news release.

"Although we saw some market improvement in full-time employment and increased migration from the last 12 to 18 months, the market continues with higher than normal inventory levels and slower sales, which limits price appreciation growth."

Lyall said there is an increase in demand despite the high number of properties sitting on the market in Calgary, but there are deals to be found for both businesses and individuals.

The larger picture

All cities in Alberta, aside from Fort McMurray — which saw a 9.4 per cent decline — registered year-over-year increases.

In Edmonton, the aggregate price was up slightly more than Calgary, rising 1.6 per cent to $385,550.

Calgary was well below the national average, where the aggregate home price rose by four per cent. Windsor, Ont., and Kingston, Ont., saw the biggest bumps at 14.7 per cent and 13.8 per cent, respectively.

Phil Soper, the president and CEO of Royal LePage, said a cool-down in Canada's real estate sector is a "good thing."

"Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today," he said in a news release.