Calgary – House prices trend downward

A house price index of repeat home sales indicates prices in Calgary fell in February, the fifth decline in six months.

The Teranet-National Bank House Price Index said prices in Calgary dropped by 0.6 per cent from January. At the national level for 11 metropolitan areas surveyed, prices fell by 0.2 per cent, the third decline in four months.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. On a year-over-year basis, prices in Calgary were up 1.3 per cent while they rose 6.1 per cent nationally.

In Canada, it was the third month in a row of deceleration in the 12-month inflation.

“On a seasonally-adjusted basis, the monthly rises in house prices in January and February remain well below those that occurred in the first seven months of last year This is why year-over-year price inflation has decelerated in both months. But the last two monthly rises were rather large,” said Marc Pinsonneault, of the National Bank.

“Overall, the Canadian market is nevertheless balanced. One might notice that the number of sales was above 40,000 in March. But this resulted from a sudden increase concentrated in Ontario and Alberta. Also, a rise to this level in last December proved to be a one-month spike. Finally, March sales could have been spurred by special mortgage rate offers. So it is premature to conclude that the activity is set to return to pre-recession or post-recession peaks. Indeed, we still think that the market is in a consolidation phase.”

According to the Calgary Real Estate Board, month-to-date until Tuesday, average MLS sale prices in the city were up 0.77 per cent from the same period a year ago to $426,786.

In the single-family category, prices are down 0.18 per cent to $482,384. They are also off by 6.07 per cent in the condo apartment category to $266,972 but have increased by 7.0 per cent in the condo townhouse category to $320,641.

Source: Calgary Herald

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