Calgary condo prices tanking due to glut of options for buyers: Royal LePage Benchmark broker
Published Thursday, July 9, 2020 2:17PM MDT Last Updated Thursday, July 9, 2020 9:00PM MDT
CALGARY -- Condominium prices in Calgary have taken a 9.7 per cent drop over the past year, according to the Royal LePage House Price Survey released Thursday.
The average condo price in the city dropped to $252,308 in June. That’s in sharp contrast to condo prices across the country, which saw a 5.3 per cent increase to raise the average price to $503,983.
A glut of condos on the market can be blamed on the decrease in prices says Corinne Lyall, broker for Royal LePage Benchmark. This trend is likely to continue as there are over 5,000 condo units currently under construction in Calgary, according to the Canadian Mortgage and Housing Corporation.
Aside from condos, Calgary's housing market has remained relatively flat year-over-year, with the aggregate price of a home decreasing 0.2 per cent to $465,273. The median price of a two-storey house in Calgary increased 1.1 per cent to $509,918, while the median price on bungalows decreased 0.1 per cent to $488,838.
"While sales are down year-to-date, activity in June was comparable with last year,” Lyall said. "Buyers have returned to the market more quickly than sellers; inventory has not kept pace."
First-time buyers are driving sales in Calgary, which has increased competition for houses in the $300,000 - $500,000 range, Royal LePage reports.
Calgary is expected to see a 1.5 per cent decrease in the fourth quarter of 2020, as compared to the same quarter the year prior.
While Calgary housing prices see a decrease, pricing across Canada has seen a large increase. The median price on a two-storey home increased 8 per cent to $794,392, while bungalow prices rose 3.9 per cent to $550,289. The price increases can be attributed to a surge in demand following provincial reopening of real estate activity, accompanied with already low inventory rates that couldn't keep up with the increased demand.