Calgary Leads Nation in Price Growth

Calgary's housing market continues to shine as one of the country's bright spots.

Along with posting the largest year-over-year price increase in Canada, Calgary was just one of three markets to continue the trend in the short term. According to the latest MLS® Home Price Index numbers from CREA, Calgary posted an 8.74 per cent year-over-year increase in December to lead all of Canada. Month-over-month, prices in Calgary were up by 0.15 per cent in December, trailing only Greater Toronto (0.32 per cent). The only other market to post a month-over-month increase in December was Vancouver, where prices increased by just 0.06 per cent.

"The decline in home sales was largely broad based across regions,with sales down in 60 per cent of markets, led by Toronto, Calgary and Edmonton," said TD Economist Diana Petramala. "Strength in home prices were largely widespread with the exception of Victoria (-1.7 per cent year-over-year) and Ottawa (1.5 per cent year-over-year), where a rising inventory of condos for sale are weighing on prices. Price gains in Edmonton (5.4 per cent) and Calgary (4.7 per cent) were running at a more sustainable pace.

Seasonally-adjusted sales were down on a month-over-month basis in about 60 per cent of all local markets in December, with declines in Calgary, Edmonton, and Greater Toronto more than offsetting gains in Greater Vancouver and the Fraser Valley, as well as a sizeable rebound from a quiet November in St. Catherines.

The number of newly listed homes fell 4.3 per cent on a monthover- month basis in December. New supply was down in two-thirds of all local markets, led by declines in Calgary, Greater Toronto, and Hamilton-Burlington.

"National sales activity has softened in recent months and is expected in 2014 to remain down from levels reached last September," said CREA Chief Economist Gregory Klump. "That said, absent further mortgage rule changes, sales in 2014 may surpass the annual total for 2013 if demand holds steady near current levels as strengthening economic and better job growth offset the impact of further expected marginal mortgage interest rate increases."

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