The price of a new home in Calgary continues to climb.
The latest numbers from Statistics Canada show the price of a new home in the city increased by 6.1 per cent over the last year.
Calgary’s increase was the highest of the 21 areas surveyed, with Winnipeg’s 4.1 per cent increase a distant second. While Calgary’s gains were the largest in the country, nearby Edmonton posted a gain of just 0.3 per cent.
“It is somewhat difficult to explain the different price movements. Both cities are doing well economically and seeing a steady flow of new migrants into their regions,” said ATB Chief Economist Todd Hirsch on the disparity. “The main factor is simply the cost of building the house, which home builders pass on to consumers through higher prices. These costs may be higher in Calgary due to a shortage of skilled trades people, higher material costs, and higher land prices. As well, the ripple effect of the summer flood continues to add pressure on labour and material costs.
Month-over-month, prices increased by just 0.1 per cent in Calgary as well as nationwide.
Home prices in Calgary also posted the biggest gain in Teranet’s National House Price Index. Calculated by using the repeat sales method, which examines all dwellings that have been sold at least twice, Calgary posted a year-over-year increase of 5.3 per cent.
According to the index, month-over-month prices in the city actually dropped by 0.3 per cent.