Canada First Mortgage

CALGARY - Affordability and low interest rates will drive modest growth in sales and prices of resale homes in Calgary this year, the Calgary Real Estate Board predicts in its 2010 forecast report released Wednesday morning.

The board followed the lead of several Calgary economists in predicting only a continuation of the gradual recovery experienced in the second half of 2009.

“MLS sales are seasonal, so we anticipate seeing higher year-over-year monthly sales in the beginning of 2010, mainly as a result of the low levels of sales experienced in the first quarter of 2009,” said Diane Scott, the new president of CREB., who takes over from Bonnie Wegerich.

“New housing starts are also expected to be relatively high in comparison to a very weak first quarter of 2009,” she said in a news release.

The report estimates single-family home sales will climb to 17,000 from 14,440 in 2009 and 7,000 condominium units will change hands, versus 6,328 last year.

In 2007, single-family sales in Calgary metro added up to 18,438 and there were 8,236 condos sold. In 2008, the numbers were 13,455 and 5,661, respectively, with the single-family number the lowest since 1996.

The board predicts the average price for a single-family home in Calgary in 2009 will jump six per cent to $470,000 from $442,327 last year and the average condo price will rise 4.3 per cent to $296,000 from $283,734 in 2009.

The average single-family home price peaked at $505,920 in July 2007 and condo prices hit a record $332,237 in May 2007.

The board said the downtown apartment condo market will be particularly slow this year and that smaller single-family homes and lower priced segments will lead in sales and price growth.

“Single-family resale prices will again outpace condos in 2010, as equity gains from pre-2006 will enable move-up buyers to afford more,” said Scott. “Consequently, the gap between single-family homes and condominium prices will continue to widen in the short term.”

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