Affordability Drives Calgary’s Housing Market
"With rising interest rates on the horizon buyers will see 2010 as the year to take advantage of low mortgage rates."
“Low mortgage rates and earlier price reductions have improved the affordability of home ownership for Calgarians,” says Diane Scott, newly elected president of CREB®. “For the time being average home prices are more in line with average incomes.A narrowing gap between the costs of renting versus owning a home will attract more first time home buyers into the market in 2010,” adds Scott.
"The median price of a single family home in the city of Calgary for January 2010 was $398,000, showing a 1 per cent decrease from December 2009, when the median price was $401,000, and a 6 per cent increase from January 2009, when the median price was $374,700. The median price of a condominium in January 2010 was $265,000, remaining the same as in December 2009, when the median was also $265,000. That’s up 9 per cent from January 2009, when the median price was $243,000."
“The story for 2010 will be a balanced and steadier market,” says Scott.
(Source: CREB® News Release Feb 1/2010)
Click on Map for larger MLS® graph
From MLS® Market Values
Comment by Elke: There are a number of factors which could influence a "balanced and steadier market" because right now Housing demand from the first-time home buyers and move-up buyers is very strong due to low interest rates.
If Premier Ed comes through with Royalty concessions for the oil industry in Alberta, demand for afforable housing may increase further and could drive prices up a bit more until more homes come to market. CMHC has reported larger housing starts than expected for this year and this will moderate home prices once these new homes come online from the building industry.
For the full new release and all community stats including Calgary-Metro, Satellite Towns, Country homes, condos, and residential homes, please go to our Calgary Real Estate Market Trends page. You can also download the mini-market stats package with this blog.