The Calgary Real Estate Board released it’s annual forecast, as reported by Calgary Herald. This predicting a 2% drop in real estates prices for single-family homes in 2009. I’ve no idea where it comes up with these numbers.
The average MLS sale price is expected to fall to $451,120 for the entire year of sales in 2009 compared with $460,327 in 2008.
Currently though there’s a problem. The average house price is lower than that:
To reach those forecast numbers though, average prices will have to climb from current levels. In December, single-family homes were selling for an average of $417,398
So hang on. If you do it month on month, house prices have fallen from the average in 2008 of $460,327 to $417,398. That is a 10% drop. To get back up to $451,120, that’s an 8.1% rise. So to meet their projection of a 2% drop, prices have to rise by 8%.
There are monthly fluctuations that would mean December is lower. But who is really expecting an 8% rise in prices in 2009?
