Calgarians paid 12% more for the average house last month than in 2009, thanks to a mad rush to buy before rising mortgage rates, say realtors.
Statistics released from the Calgary Real Estate Board reveal Calgarians were paying more for their homes and condos last month compared to the same time a year ago.
Mike Kandil, a local Century 21 Bravo Realty Associate, said increasing mortgage rates caused the average price of a single family home to boost 12% to $471,269 last month from $420,354 in March 2009, and $458,254 from February.
“The prices have gone up because people were in a rush to buy before mortgage rates went up,” he said.
“There were a lot of competitive offers and above listed sales. “It motivated buyers and caused over-bids on homes.”
As well, the average price of a condo was $296,660 last month, a 5% increase from February when it was $282,880 and a 4% increase over last year, when it was $284,056.
The statistics also reveal the number of single family homes sold last month was up 29% from the same time a year ago, and sales of condos increased by 37% from 2009.
In addition to the multiple offers being placed on homes, and above listed sales, Kandil has also noticed more buyers using homes as income properties or purchasing to rebuild.
He said the numbers show confidence in the housing market.
“It all looks pretty positive,” he said.