Calgary New Housing Price Gain Eases In June

Calgary new housing annual price growth remained the highest in Canada, but posted the smallest monthly gain since last year according to the Statistics Canada report.

New home prices in Calgary rose by 0.3% in June, as builders continued to report higher material and labour costs, good market conditions and higher costs for developed land as the reasons for the gain.  However, this was the smallest monthly price increase in Calgary since December 2013 as seen below:

Calgary Month-Over-Month Increases 

  • May 2014: 0.8%
  • April 2014: 0.6%
  • March 2014: 0.8%
  • February 2014:  0.9%
  • January 2014: 1.3%

Last month we took a look at how the new housing market in Calgary differs from Edmonton.  Below is some additional insight from ATB Economist Todd Hirsch:

“Both cities continue to do well economically and attract growing populations from interprovincial migration. The difference can be attributed to higher building costs in Calgary.”

“Over the last three years, the price of a new house in Calgary has risen by 14 per cent. The cost of the land itself has risen by 7.3 per cent. But the cost of building the house—which includes material and labour—has risen by a much steeper 19.3 per cent. Over the last three years, the price of a new house in Calgary has risen by 14 per cent. The cost of the land itself has risen by 7.3 per cent. But the cost of building the house—which includes material and labour—has risen by a much steeper 19.3 per cent.”  (Source)

(click to enlarge)

(click to enlarge)

Did You Know…

If you’re looking to buy a new home from a participating builder, there can only be one price for the home whether sold in-house or by a REALTOR®?

That means I can act as your Buyer Agent and provide representation and advice without costing you additional money or losing any leverage when negotiating. Why wouldn’t you want to take advantage of that?

To find out more about the program and which builders participate, click here

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