A nationwide study conducted by CENTURY 21 Canada reveals that real estate prices per square foot have fallen sharply in Calgary and Edmonton in the past year.
The report said a house in Calgary has dropped from $293 per square foot last year to $282 per square foot this year. The condo price has fallen to $273 from $276.
In Edmonton, a detached home has dropped from $288 last year to $272 this year. A duplex has gone from $275 to $256 and a condo has decreased from $231 per square foot to $220 this year.
The rate of price decreases varies broadly across Canada while in some markets, notably Montreal and downtown Toronto, prices actually rose over the past year, said the report.
Prices are down most consistently and sharply in B.C., with Vancouver, many Metro Vancouver suburbs, and even markets on Vancouver Island and the Okanagan seeing declines of 10 or even 20 per cent in the price per square foot of properties sold between January 1 and June 30 this year, compared to the same period last year. Price decreases in Alberta and the Prairies were generally more moderate, while prices for condos in Montreal shot up 25 per cent per square foot, condos in downtown Toronto rose 10 per cent, and most Atlantic Canadian cities saw modest increases, it said.
“What strikes me in this survey is how pricing trends varied so broadly across communities and types of property over the last year,” says Brian Rushton, Executive Vice-President of CENTURY 21 Canada, in a news release.
“Your real estate story is very different, depending on where in Canada you live. It is not surprising to see Vancouver prices drop so much, but the drop is actually more significant in some Metro Vancouver suburbs like West Vancouver and secondary B.C. markets such as Vernon and Kelowna. Prices in Montreal and Toronto, meanwhile, continue to head up, to the point detached houses in Montreal cost more per square foot than houses in many Metro Vancouver suburbs, and twice as much per square foot as Calgary.”
The report said Prairie house prices remain generally affordable compared to other provinces, with prices dropping modestly in most communities. Calgary prices fell 3.59 per cent.
“With so much variation in the market and prices adjusting very differently depending on neighbourhood and property type, now more than ever it is important to have good information when making real estate buying and selling decisions,” said Rushton. “The list of complex local factors we see reflected in this survey is a long one, ranging from new taxes on property speculation and foreign buyers in B.C. through to a changing economy impacting neighbouring Toronto suburbs very differently.”