If you live in Canada, you’re likely aware of the positive market statistics coming out of the Calgary real estate scene. Home prices are rising in the area of 10% each year. And it looks like the Calgary homes market is recovering well. 2012 was a pretty good year for sales despite the sluggish national economy. Migration to Alberta remains strong and the energy sector looks like it can support extended growth through the next 5 years at least.
The Calgary Real Estate Board recently published their 2013 Calgary regional housing market forecast. CREB believes resource rich provinces such as Alberta and Saskatchewan will Canada in economic growth this year. They believe that pace will slow slightly from 2012 and employment growth will slow as well. We must keep in mind that skilled worker shortage is still acute in the western provinces. Any claim that the Alberta economy is ailing would be a giant overstatement.
CREB notes that if home listings continue to decline and demand for homes increases, it will drive prices higher. Listings on the MLS Calgary system are expected to drop in 2013.
BMO’s Senior Economist, Sal Guatieri said about the Canadian real estate market that "Home sales and housing starts will continue to moderate and prices will generally stabilize in most regions in 2013." As far as he is concerned, the housing market is hitting its low point and this will continue throughout this 2013. Low interest rates and the US Fed’s quantitative easing should keep a lid on longer term lending rates.
The Canadian Mortgage and Housing Corporation believes that while the national growth rate is expected to remain around 2% this year, it will vary depending on the region. The energy rich provinces such as Alberta, Saskatchewan and Newfoundland are expected to lead the country
in growth due to the consistently high prices of energy, mining, and potash resources and the capital investments that it attracts.
CMHC sees growth coming with employment gains and a corresponding boost in net migration throughout 2012, but slowing slightly in 2013. Alberta wages, already the highest in Canada, continue to rise, driving 2012 migration estimates near to the peak levels of 2006.
The composition of housing is shifting in the Calgary area. More new home starts will be multi-family developments. New listings should remain stable, and with City of Calgary housing policies focused on encouraging multi-family development, single family sales are expected to record only modest growth of 1.8 per cent. Currently however, new listings have dropped.
Find out more about the Calgary real estate outlook at the Calgaryhomeboys.com blog. Also take the opportunity to peruse the available properties on the Calgary MLS listings. See homes in some of Calgary’s best neighbourhoods including Silver Springs, Hawkwood, Edgemont, Bowness, Panorama Hills, Tuscany and Citadel. Average prices will climb above $550,000 for a single detached house, so a property looks like a appreciating investment.