House prices in Calgary and Edmonton to drop in 2016: Remax

House prices are expected to drop four per cent in Calgary and 3.5 per cent in Edmonton in 2016, according to the Remax housing market report.

"With oil price volatility continuing to make buyers feel uncertain, we do expect the average sale price to decrease next year," said Elton Ash of Remax Western Canada.

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Next year's average home price is expected to be $443,232 in Calgary and $360,379 in Edmonton.

2015 prices

Both markets have shown "resilience" in the past year despite slower activity and falling oil prices, he said.

The average residential sale price in Calgary in 2015 was $461,700 five per cent lower than the year before, due primarily to a larger proportion of sales at the lower end of the market, Remax said.

In Edmonton, the average price of $373,450 was two per cent higherdespite more inventory on the market.

"An ongoing $5-billion development project in downtown Edmonton has stimulated the local economy and helped to keep employment levels up, mitigating the impact of oil industry layoffs," the company said in a release.

Not surprisingly, Vancouver and Toronto continued to see huge increases in home prices this year.

The average residential sale price increased 17 per cent in Greater Vancouver and 10 per cent in the Greater Toronto Area to $947,350 and $622,150, respectively.

Nationally, the average home price is expected to increase 2.5 per cent in 2016as Canadians continue to see home ownership as an important milestone as well as a good investment, the report said.