CALGARY -- Royal LePage is predicting a slight increase in detached home prices and a modest decrease in condominium prices in Calgary in 2021, as well as stable prices in the Edmonton market.
According to the group's market survey forecast released Monday, the aggregate price of a home in Calgary next year is expected to be $469,600 —a 0.75 per cent increase over 2020 — and the median price of a two-storey detached home is pegged at $514,800, a jump of 1.5 per cent compared to 2020.
The stabilized price prediction is due in part to a decline in listings at the start of the year as well as the expected rise in demand for homes as interest rates remain low.
"Inventory for detached homes has not seen similar lows since 2001," explained Corinne Lyall, broker and owner with Royal LePage Benchmark. "Buyers are eager to get into the market, but they may have to broaden their search to find a good selection to choose from if they are looking for detached homes in popular neighbourhoods.
"While spring is expected to bring new inventory to the market, we are also anticipating a healthy level of demand from buyers, resulting in a balanced market."
On the condominium front, Calgary's median price is expected to be $258,000 in 2021 — a one per cent decrease from 2020 — but there is optimism that entry-level buyers, single professionals and a potential influx of immigrants in response to the federal government's targets could buoy the market.
Prices in Calgary are expected to continue to exceed prices in Edmonton where the forecasts for 2021 are:
- Aggregate home price in Edmonton: $375,600 (1.5 per cent increase over 2020)
- Median two-storey home price in Edmonton: $430,700 (1.5 per cent increase)
- Median condominium price in Edmonton: $215,100 (one per cent increase)
"There is excellent value in Edmonton," said Tom Shearer, broker and owner of Royal LePage Noralta Real Estate, in a statement. "Homeownership is possible for most professionals, and young families can find detached properties in desirable neighbourhoods."
The complete Royal LePage 2021 Royal LePage Markey Survey Forecast appears below: