Calgary home prices edge up in March

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The price of a Calgary home edged higher in March in a tight market, as potential sellers hold onto their homes for longer.

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On average, prices increased two per cent to $541,800 in March from the previous month, and eked out a roughly one per cent gain from the same time last year, according to data from the Calgary Real Estate Board. The number of homes exchanging hands in the city also grew by about 40 per cent from a sluggish February, to 2,432 units sold in March.

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CREB also noted that the 3,233 homes on the market reflected the lowest March inventory levels since 2006, meaning there were fewer options for homebuyers looking to get into the market, which drove up prices.

“The challenge has been centred around supply,” said CREB chief economist Ann-Marie Lurie in a press release on April 3. “As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”

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Lurie added that home sales were still stronger than they were pre-pandemic as more Canadians and immigrants moved to Alberta. During the pandemic-fuelled real estate frenzy in 2022, more Canadians moved from unaffordable markets such as Toronto and Vancouver to buy property in cities such as Calgary and Edmonton.

While prices in Calgary showed an improvement month-over-month, they still fell shy of the May 2022 high of $546,000. Apartment prices grew the most in March, jumping by more than 10 per cent to $293,500. Row homes followed suit with a 7.5 per cent gain to $378,100. Detached and semi-detached prices edged up by more than one per cent to $649,800 and $581,300, respectively.

The housing market in Alberta’s largest city lost steam last summer as the aggressive pace of Bank of Canada rate hikes raised borrowing costs and put many would-be homebuyers on the sidelines. As the central bank put a temporary pause on rate hikes and house hunters weigh their purchase options, realtors and market-watchers are setting their sights on the spring market — typically the most heated season for home sales — for signs of life.

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