CALGARY - The province-wide house price boom that gripped Alberta for several years has been replaced this spring with price variations tied to local economies ranging from increases of 23 per cent to declines of 15 per cent, according to a national survey by Century 21 Canada brokers.

The report released today says prices of homes in Alberta communities this spring are determined by the strength of the local economy and the supply of new housing built during the boom.

"The metro areas around Calgary and Edmonton are experiencing some price corrections," said Don Lawby, president of Century 21.

In Calgary and nearby communities High River and Airdrie, for example, prices in 12 neighbourhoods surveyed varied from increases of nine per cent to decreases of 13 per cent.

"The Alberta economy remains very strong with record prices in the grain sector replacing some of the decline in conventional oil and gas drilling," added Lawby.

"The collision between the conventional oil sector decline and the supply of new housing is impacting different communities in different ways."

While some price corrections are taking place particularly in Calgary and Edmonton, he said, "Lethbridge is stronger than ever and Red Deer is strong and stable."

"It remains a seller's market in Fort McMurray, where employment increases in the oil sands projects continue to push housing demand ahead of new supply."

The Century 21 Canada 2008 Spring National House Price Survey reflects the price of a typical home in 197 neighbourhoods in 66 communities across Canada. The real estate firm says a typical home is defined as the type of home that occurs most frequently in any given neighbourhood or community. The homes selected for inclusion in the survey were by the company's brokers in those communities.

Across Canada, the survey found price increases in 167 neighbourhoods, flat prices in nine neighbourhoods and price declines in 21 neighbourhoods. mtoneguzzi@theherald.canwest.com

© Calgary Herald 2008
Mario Toneguzzi 
Calgary Herald