Calgary home prices edge up in March

By
Millicent Wong
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Calgary home prices edge up in March

The price of a home in Calgary rose in March in a tight market as potential sellers held on to their homes longer.

On average, March prices rose 2 percent from the previous month to $541,800, up about 1 percent from the same time last year, according to data from the Calgary Real Estate Board. The number of housing changes in the city also rose by around 40 percent from a weak February to 2,432 units sold in March.

CREB also noted that the 3,233 homes on the market reflected the lowest March inventories since 2006, meaning there were fewer options for homebuyers looking to enter the market, which pushed prices higher.

“The challenge was centered on supply,” said Ann-Marie Lurie, CREB’s chief economist, in an April 3 news release. At the same time, higher lending rates may also reduce the incentives for existing homeowners to list their home.”

Lurie added that home sales are still stronger than before the pandemic as more Canadians and immigrants moved to Alberta. During the pandemic-driven real estate frenzy of 2022, more Canadians moved from unaffordable markets like Toronto and Vancouver to buy real estate in cities like Calgary and Edmonton.

While prices in Calgary improved month-on-month, they still lagged the May 2022 high of $546,000. Home prices rose the most in March, rising more than 10 percent to $293,500. Townhouses followed, up 7.5 percent to $378,100. Single and two-family home prices rose more than one percent to $649,800 and $581,300, respectively.

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The housing market in Alberta’s largest city slowed last summer as the aggressive pace of the Bank of Canada’s rate hikes pushed up the cost of borrowing and sidelined many potential homebuyers. As the central bank pauses rate hikes and homebuyers weigh their buying options, realtors and market watchers are turning their attention to the spring market — typically the hottest time of year for home sales — for signs of life.

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