Calgary’s housing market continues to shine
Calgary’s housing market will continue in an upward direction this year, according to the Canada Mortgage and Housing Corp.
The CMHC’s spring market outlook forecasts total housing starts in the Calgary area will reach 11,600 units in 2012, up from 9,292 units in 2011. Next year, a slight moderation to 11,400 units is expected.
“Both single-detached and multifamily builders are expected to produce more units in 2012, with the apartment segment seeing the largest gains in new construction. Improved job creation, rising incomes, increased net migration, and low mortgage rates will support housing demand in 2012 and in the following year,” said Richard Cho, senior market analyst in Calgary for the CMHC.
Single-detached starts are forecast to reach 5,700 units in 2012, up 12 per cent from 2011. Expect another four per cent increase to 5,900 units in 2013, said the CMHC.
Multi-family starts in 2012 are forecast to rise 40 per cent to 5,900 units this year.
“Multi-family units continue to attract first-time home buyers, investors, and those looking to downsize,” the report said.
In 2013, multi-family construction is forecast to remain near historical averages with 5,500 units breaking ground.
Residential MLS sales are forecast to increase nine per cent in 2012 to 24,500 units, rising for the second consecutive year. The gains in employment in 2011 and 2012 along with improved migration flows will sustain housing demand in 2013 when sales are forecast to reach 25,300 units, said the CMHC.
“With active listings in Calgary’s resale market moving lower relative to demand, home prices will experience more upward pressure,” said the report.
CMHC is forecasting the average price to increase to $410,000 in 2012, up 1.8 per cent from the previous year and rise 2.4 per cent in 2013 to $420,000.
For Alberta, the CMHC is forecasting total starts to jump from 25,704 in 2011 to 30,700 in 2012 and to 30,800 in 2013.
MLS sales in the province are expected to rise from 53,755 last year to 57,600 this year and to 59,200 next year.
And the average MLS sale price is forecast to increase from $353,390 in 2011 to $360,900 in 2012 and $371,500 in 2013.