City housing market ready for expansion

Calgary’s residential housing market is poised to expand in 2013, with move-up buyers set to lead the charge and average prices continuing to rise.
A report released by Re/Max on Thursday said the 10-year appreciation in average house prices for residential properties in the city and area was 108 per cent, rising from $198,350 in 2002 to $412,315 last year.
By comparison, average house prices across Canada jumped by 93 per cent during the same period from $188,164 to $363,740.
“Low interest rates and a slow but steady increase in average price have provided the impetus,” said the Re/ Max Move-Up Buyers Report about the Calgary market.
“While equity gains have been limited over the past five-year period, those who purchased within the last decade have realized solid appreciation.”
Tanya Eklund, a realtor with Re/ Max Real Estate Central, said it has been an amazing start to the new year in Calgary.
According to the Calgary Real Estate Board, sales through Feb. 20 are up nearly 12 per cent in Calgary, with prices up 9.4 per cent.
“Listing inventory is down and sales are up based on last year to date. We seem to be in this little sweet spot in the market right now,” said Eklund.
“Buyers seem to be very confident and are considering move-up homes or buying investment properties.”
Average house prices in the Calgary area are actually down slightly – just under one per cent – from 2007 during the housing boom.
The Re/Max report said a supply shortage, particularly in sought-after neighbourhoods, could place “serious” upward pressure on pricing once again.
“While more experienced, move-up buyers are forecast to dominate homebuying activity this year, the first-time buyer won’t sit still for long. Pent-up demand – combined with a tight rental market – could spark renewed interest by year-end,” the report said.
Calgary’s 10-year price appreciation was the seventh highest in the country of the 16 markets surveyed by Re/Max.
Regina, Saskatoon and Winnipeg saw the largest 10-year gains in prices.