Calgary experienced a housing market renaissance in 2012, reaping the benefits of strong provincial GDP and in-migration, which propelled home resales in the area, reported by RBC Economics Research on Monday.
The latest Housing Trends and Affordability Report listed Calgary as one of the more affordable housing markets in Canada.
The RBC housing affordability measures capture the pre-tax household income needed to service the costs of owning a home at market values.
In Calgary, the average price of a detached bungalow in the fourth quarter of 2012 was $440,600 and the affordability measure was 38.1 per cent. The typical price for a standard two-storey home was $434,700 with a measure of 38.6 per cent and for a standard condo the average price was $250,100 with a measure of 22.2 per cent.
RBC said Alberta’s housing market stayed vibrant in the final quarter of 2012, buoyed by attractive affordability levels, accelerating population growth, a healthy labor market and a strong provincial economy. Although the pace of home resales slowed in the closing months of 2012, the housing market tightened up as fewer properties were listed for sale, it said.
The RBC housing affordability measures for the province fell across all 3 housing types tracked by RBC. RBC’s measures for the benchmark detached bungalow and the standard two-storey fell by 0.2 percentage points to 32.1 per cent and 34.7 per cent, respectively. The measure for condominium apartments fell by 0.1 percentage points to 19.7 per cent. Average prices were: bungalow, $357,900; two-storey, $378,800; and condo, $213,300.
Across the country, affordability measures dropped by 0.2 percentage points for both bungalows (42.1 per cent) and condos (28.0 per cent) and by 0.3 percentage points for two-storey homes (47.8 per cent). Average prices in Canada in the fourth quarter of 2012 were: bungalow, $363,400; two-storey, $410,600; and condos, $237,600.