Calgary house prices expected to grow 5% to 7%

Short-term year-over-year price growth for Calgary’s housing market is expected to be in the five to seven per cent range, says the Conference Board of Canada.

The board’s Metro Resale Index indicates the average price in the city for a residential property in April was $407,900, up from $393,427 in March and from $395,468 in April 2010.

The board also classified Calgary’s housing market as being in balanced conditions.

The seasonally-adjusted annual rate of house sales in the city in April was 21,312, which was down slightly from March’s 21,840 and from April 2010’s 23,556.

“Tightening of federal mortgage-insurance rules hurt April resale activity,” said the board. “Sales fell from March levels in 23 of our 28 markets, and from a year earlier in 26 areas. The drop in sales in April added to vendors’ gloom. Although listings in April fell from March levels in only nine markets, they trailed year-earlier levels in 19.”

Calgary’s annualized rate of listings was 42,240 in April, up from 41,952 in March but down from 55,548 in April 2010.

The board listed the following areas as having short-term year-over-year price growth expectations of over seven per cent: Saskatoon, Gatineau, Montreal, Quebec City, Sherbrooke, Trois-Rivieres, and Saguenay.

Joining Calgary in the five to seven per cent range were Victoria, Vancouver, Fraser Valley, Edmonton, Regina, Winnipeg, Sudbury, Halifax and Newfoundland.

In the three to five per cent range were Thunder Bay, Hamilton, St. Catharines, Kitchener, Kingston, Ottawa and Saint John.

Toronto, Oshawa, London and Windsor were in the zero to three per cent category.

© Copyright (c) The Calgary Herald

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