Recent data suggests that home prices in Calgary will increase by 5% in 2010 after a 5% decrease in 2009 according to Re/Max.

Average Home Prices (including condos) is expected to rise from the current level of $385,000 to about $403,000 next year. Also, unit sales are expected to increase from 26,000 unitls to 28,000 in 2010, an eight (8) per cent increase.

Nationally, home values and unit sales are expected to rise only 2%.

“A number of factors will help prop up activity going forward, including improved economic conditions, continued low interest rates, rising consumer confidence and solid capital spending which will buoy employment,” said Re/Max. “Inventory will once again assume the wildcard role, with any decline placing upward pressure on prices. Multiple offers will remain the exception in most markets, more commonplace on quality entry-level product which remains in tight supply. “