New Home Prices in Alberta Remain Stable
According to a new housing price index, the current economic downturn in Alberta hasn’t done much at all to lower new home prices. In September of 2016, the index price remained virtually unchanged – at 99.4 – with the indexes default prices in 2007 set to 100.
January of 2015 was when the new home price in Calgary index maxed out – at 111.3 – falling only slightly since then. In Edmonton, new home prices have been relatively unchanged as they have hovered around 91.5 for the past four years.
More specifically, the Calgary Metropolitan Area (CMA) saw 1,205 new housing starts in the same month compared to just 742 in August of 2016.
However, on a year-over-year comparison that figure is a bit lower than the 1299 new units built in September of the previous year, reflecting a continued decrease in demand for new homes in the city.
How It’s Happened?
Considering the economic downturn that our province is currently experiencing, it’s a bit of a surprise to many that new home prices have not dropped more especially given the fact that both unemployment rates and lack of consumer confidence are high.
One of the reasons why the new home price index in Alberta has remained relatively unchanged is due to the amount of new houses being constructed.
Builders are adding fewer properties to the market – to about 29,000 new housing starts in September of 2016 compared to the typical 40,000 on average – keeping pace with reduced demand and allowing prices to remain stable.
In August, housing starts province-wide were only at 20,000 units and in general are down 32 percent compared to the previous year starting from September of 2016.
New Home Guides
Are you thinking about making a move in Calgary’s new home market? If so, we have a full list of new home buyer guides to help you along your way:
Remember that when you’re buying new, the builder pays a real estate agents commission – not you!
Therefore, its best you contact a new home expert to provide the best third-party representation as possible and help guide you every step of the way.
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