NEWS - Outlook Sees Moderation in Calgary, Edmonton Prices

A new study suggests that condo price in the two big Alberta cities will see very slow price appreciation over the next four years. But last month's statistics show a price rebound may have already started. Calgary condominium prices are forecast to grow 4.1% this year after being up 47.9% in 2006 and 22.2% last year. In Edmonton, prices will grow 6.4% this year after gains of 25.8% in 2006 and 43.2% last year, according to Genworth Financial's 2008 Metropolitan Condominium Outlook. "Both cities will see more moderate price growth in condo markets through 2012", Genworth forecasts prices in each city will rise on average by 3.1% annually to $320,728 by 2012 in Calgary, and to $274,333 by 2012 in Edmonton.

Major Point: In Calgary, the median condo price was up 5.1% on MLS in February to $295,000, despite a listing inventory of 2,384 units, 15% higher than a year earlier. Edmonton average condo prices were up 6% to $264,204 in February, compared to a year earlier. This is the highest average price for condos in the past five months. With oil near $100 and inflation pressure increasing, all housing prices in Alberta's big cities will rise in the 7% to 8% range in 2009, once the current glut of new products works through.