Real estate report suggests home price surge in Calgary next year

High demand from buyers and a continued supply shortage is expected to push house prices up in many Canadian cities, according to a new forecast from Royal LePage.

The real estate agency says the global economy is resulting in a boost in energy prices, making Alberta an inviting place to live.

That's going to mean higher home prices, the company said in its market survey forecast, which was released on Wednesday.

"In Calgary, the aggregate price of a home in the fourth quarter of 2022 is forecast to increase six per cent year-over-year to $610,600, compared to the same quarter a year prior," Royal LePage wrote in a release.

"During the same period, the median price of a single-family detached property is expected to rise six per cent to $689,000, while the median price of a condominium is forecast to increase two per cent to $229,500."

The Omicron variant, while it is a threat to the health and well-being of Canadians, could also play into 2022's surge in home prices as companies may consider delaying any return-to-work policies.

There may be an emphasis "on the importance of the home as a place to both live and work," Royal LePage said, adding that travel and entertainment may also be restricted, leading to Canadians closing their wallets again.

These conditions are expected to result in a "brisk" market for the city of Calgary, it says, especially with how affordable prices are here in comparison with other major Canadian cities.

"Without a significant boost in inventory, we will continue to see upward pressure on prices," said Corinne Lyall, broker and owner of Royal LePage Benchmark, in a statement.

Infrastructure projects such as the new stadium and the Green Line are also adding to Calgary's "positive momentum," Lyall adds.

"Calgary is very attractive to young Canadians looking for affordable homes, good job opportunities and a more balanced lifestyle. Calgarians have access to mountains, lakes and national parks, without having to give up the comforts of city life."

According to Royal LePage's forecast, the highest price increase for a detached home in Canada is expected to be in Halifax (10.5 per cent) followed by the Greater Montreal Area and Ottawa (both nine per cent).