Calgary’s housing market is experiencing positive momentum and is a “lone shining star” in the Western Canadian real estate market, according to a report by TD Economics.
In the first edition of its Metro Beat, reviewing economic trends on a quarterly basis, TD called Calgary’s situation ideal in comparison to what’s happening in Vancouver with the resale housing market seeing sales decrease there by 26 per cent in 2012.
“(Calgary) was the only one among its peers to register positive sales growth in 2012 at 14.3 per cent,” said the report. “Calgary is also benefiting from a double digit increase in new housing starts (38.2 per cent), a sharp rebound from 2011. Residential building permits were up as well in the region, signalling more projects to come over the near term.”
TD said average home prices will rise from $411,927 in 2012 to $423,400 this year and then to $431,400 next year. Those include all residential homes in Calgary and surrounding region.
Last year there were 27,212 total MLS residential sales under the Calgary Real Estate Board’s jurisdiction — a hike of 18.84 per cent from the year before. TD said sales this year will rise to 27,700 followed by a slight dip to 27,500 in 2014.
Sonya Gulati, senior economist with TD Economics, said the economic growth overall in Calgary is quite strong.
“We’re seeing that in the housing figures. We’re seeing that in the employment figures,” said Gulati. “And that’s partly because the province is doing quite well from an economic point of view and Calgary tends to get the spillover there.”
Canada Mortgage and Housing Corp. is forecasting MLS sales in the Calgary CMA to grow by 1.37 per cent this year followed by another 2.59 per cent in 2014.
The average sale price is expected to rise by 2.59 per cent this year to $423,000 and by another 2.6 per cent in 2014 to $434,000.
© Copyright (c) The Calgary Herald