Average annual compounded rate of return 7.7%

BY MARIO TONEGUZZI, CALGARY HERALD FEBRUARY 8, 2011

CALGARY - Calgary homeowners earned among the highest compounded rate of return for real estate between 2000 and 2010, according to a report released Tuesday by Re/Max.

The report said the average residential price in the city grew from $176,305 in 2000 to $398,764 last year - an annual compounded rate of return of 7.7 per cent.

That bested the national average of 6.82 per cent. Across Canada, Re/Max, in its Housing Barometer report, said residential average prices went from $164,091 in 2000 to $339,030 in 2010.

"Home sellers in Calgary were firmly in the driver's seat for the majority of the decade at 47 per cent, while balance prevailed for 36 per cent of the period," said Re/Max. "Purchasers, meanwhile, held the advantage 17 per cent of the past decade, largely concentrated from 2008 to 2010."

At the national level, the real estate company said balanced conditions prevailed 49 per cent of the time with seller's conditions 41 per cent of the time and buyer's conditions 10 per cent of the time.

"Calgary's residential real estate market remains balanced heading into the new year," said the Re/Max report. "Prices have firmed up for the most part as cautious optimism in a strengthening recovery is driving buyers off the sidelines.

"Multiple offers have re-emerged but have been limited to homes priced at fair market value in choice neighbourhoods. Overpriced listings continue to stagnate as purchasers have the luxury of time to make their decisions. The easing of in-migration over the past three years has allowed local buyers to make their moves with less competition."