Calgary’s real estate market has seen homeowners and renters struggle with rising costs, and the Calgary Real Estate Board (CREB) revealed that two areas have seen extreme price jumps.
Topping the price jumps with a significant lead is east Calgary, which saw a staggering 11.5% jump year-over-year, amounting to a benchmark house price of $434,600. Closely following is northeast Calgary, which saw a 7.8% increase year-over-year to $519,900.
The city centre saw the smallest year-over-year price jump, with a 1.1% increase bringing house prices to $599,500.
While the east and northeast districts of Calgary have seen major price jumps year over year, the CREB reported that the city’s average residential benchmark price was 4% higher than last year, reaching $592,500.
CREB
According to the CREB, house price sales in Calgary have remained relatively stable since last year. October’s sales were similar to last year’s, as the rising sales in the upper price ranges offset the decline of sales in the lower end of the market.
“Housing demand has stayed relatively strong in our market as we move into the fourth quarter, with October sales rising over last month,” said Ann-Marie Lurie, chief economist at CREB.
The CREB added that 4,966 units were available in October, a significant improvement from the near-record low of 3,205 units at the same time last year.
However, the CREB shared that the composition of these units is skewing toward the higher-end of house prices, with nearly half of all the residential inventory now costing above $600,000.
“Supply levels in our market are improving relative to the ultra-low levels experienced last year, but much of the gains have been driven by higher-priced units for each property type,” Lurie said.
Lurie added that sales would have been even stronger if there was greater availability of lower-priced homes.
“While demand has stayed strong across all price ranges, the limited choice for lower-priced homes has likely prevented stronger sales in our market,” she said.