Calgary home prices to soar

CanWest News Service

The average price of a new single-family detached home in Calgary will soar by nearly 38% in 2007, nudging close to $500,000 -- an increase of more than $200,000 in three years, says the Canada Mortgage and Housing Corporation. The agency's forecast for this year says the "absorbed price," which is not counted until construction is completed, will balloon to $487,500 in 2007, compared with $353,662 in 2006. In 2005, the average price was $315,796. Calgary Region Home Builders Association president Don Davies said three factors have contributed to the rise in prices: labour increases, land costs and material costs. "They've all increased significantly over the year," Mr. Davies said. "The labour costs have really gone up. The shortage of labour has certainly contributed to the increase in costs." According to data released by Statistics Canada, Calgary posted the largest 12-month increase ending in November.

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