High demand lifting Calgary region housing market – Outlook strong for increased starts, sales and prices

A high level of demand will continue to lift housing starts, MLS sales and average house prices this year in the Calgary region, according to a report released Thursday by Canada Mortgage and Housing Corp.

The agency’s first quarter 2014 Housing Market Outlook said housing starts in the Calgary census metropolitan area will reach 14,100 units in 2014 before declining to 13,500 in 2015. They were at 12,584 last year.

The report said a record level of migration in 2013 will help lift MLS sales from 29,954 in 2013 to 31,300 units in 2014 and to 32,100 in 2015 and the high level of demand is expected to be met by more supply which will help lift the average price from $437,036 in 2013 to $449,000 in 2014 and to $460,000 in 2015.

“Calgary has experienced a large inflows of people and employers are projected to continue to expand their payrolls. This will be an active year for the Calgary real estate market,” said Lai Sing Louie, the CMHC’s regional economist for the Prairie and Territories Region in Calgary.

The level of MLS sales is below but approaching the record of about 33,000 transactions in 2006.

“Tight conditions in the resale market will have some buyers looking to the new home market to meet their needs this year. By 2015, it is expected that supply levels in the new home market and a wider selection of listings in the resale market will help moderate new construction activity.”

CMHC is forecasting the rental vacancy rate in the Calgary region to climb from 1.0 per cent in 2013 to 1.2 per cent this year and to 1.5 per cent in 2015. It also forecasts the average rent for a two-bedroom apartment to rise from $1,224 in 2013 to $1,280 this year and to $1,320 next year.

“Calgary’s housing market is one of the strongest in the country, and is expected to remain so for the foreseeable future,” said Ben Brunnen, an economic consultant in Calgary. “The increased demand for housing is being driven by strong fundamentals such as robust population growth, low vacancy rates, high rents, and growing wages. These underlying conditions provide confidence that the price and sales growth we’re seeing right now are economically sustainable.

“Looking ahead, with the low Canadian dollar and stronger housing demand in the U.S., watch for price appreciations in the cost of new housing, which could put increased pressure on Calgary’s housing market.”

The Calgary and Alberta housing markets will be buoyed in the coming years by strong net migration numbers. CMHC estimates net migration to the province in 2013 will be 103,000 people followed by forecasts of 71,000 in 2014 and 63,000 in 2015.

In Alberta, after reaching 18,431 units in 2013, single-detached starts are projected to increase to 19,100 in 2014 and remain near this level at 18,800 in 2015. After increasing to 17,580 units in 2013, multi-family starts in Alberta are projected to rise further to 18,000 units in 2014 and then moderate to 17,600 units in 2015, said the CMHC.

In the resale market, MLS sales are projected to rise from 66,080 units in 2013 in Alberta to 68,500 in 2014 and to 70,100 in 2015. The average MLS price in the province will increase from $380,969 in 2013 to $391,100 in 2014, and then rise to $401,000 in 2015.

 

© Copyright (c) The Calgary Herald

2014 looks strong for Airdrie real estate market

The Airdrie housing market had a very strong year in 2013 with pricing returning to the peak levels of 2007.

Now looking to 2014 the Calgary housing market is expected to continue growing, which should push Airdrie housing prices up further as well.

As homes get less affordable in Calgary, buyers will look for less expensive options and head out to the smaller centers.

With our location and with so many amenities, Airdrie is often many buyer’s No. 1 choice as their place to call home. To put some perspective to the affordability, we’ll look at benchmark pricing (benchmark means the typical home).

For a look at what is considered typical please see our blog dated Jan. 6 at airdrieliving.ca

Through the third quarter of 2013 the typical home in Calgary was selling for $470,600 while in Airdrie the typical home sold for $365,900 for a difference of almost $105,000. However, in Airdrie we all know that two storeys are king and what builders will continue to build.

So it certainly makes sense to look at benchmark pricing for the typical two-storey home as well.

The typical two- storey home in Calgary sold for $508,400 and in Airdrie sold for $402,200 for a difference of more than $106,000.

With these kind of savings on the largest investment most people will ever make, it is easy to see why so many buyers are willing to move out of the city and why Airdrie continues to grow by 11 people a day, with half of them coming from Calgary.

To add to rising prices, in 2014 the Calgary real estate board is predicting an increase of 4.3 percent for the city of Calgary with the first half of the year being stronger than the second half.

This along with interest rates expected to climb slightly, Airdrie’s affordability will remain high compared to Calgary, which should also continue driving prices up here.

Another key factor for the Airdrie market will be housing starts.

If starts increase, this will help alleviate some of the pressure on resale homes.

However, if starts remain around the same then we will continue to see a low number of available homes on the market, which again could push prices up even further.

While I wish I had a working crystal ball and could tell you exactly what’s going to happen, that is just not the case. We live in a world of ever changing factors and in Alberta we are of course dependent on oil.

If oil goes up then housing prices will probably go up, if they go down then pricing will likely all relative. If you sell when prices are high chances are you will buy when prices are high.

Same goes when the market is low. So when people ask me, ‘when is it the best time to list my house?’ my answer is always ‘when you want to sell because you never know when the right buyer for your house is out there looking and if you are not on the market they will not find you.’

So regardless of pricing make the decision based on your needs.

So the good news is all factors are leading towards a strong 2014.

-Airdrie Echo

Calgary area new home prices on the rise to record level – Single-detached average forecast to reach nearly $600,000 this year

A number of factors has pushed new home prices in the Calgary region higher with a forecast of the average absorbed price for a single-detached property to rise to nearly $600,000 this year, which would be a record.

Canada Mortgage and Housing Corp. measures prices in the new home market when a property is “absorbed” which means the unit is no longer on the market as it has been sold or rented.

The federal agency is forecasting the single-detached average absorbed price in the Calgary census metropolitan area to increase to $598,000 this year from a forecast $583,000 in 2013 and $580,135 in 2012.

Doug Whitney, vice-president of sale for Crystal Creek Homes and president this year of the Canadian Home Builders’ Association-Calgary Region, said a number of factors will lead to higher new house prices this year.

He said the industry is seeing pressure on its own prices for materials such as drywall, concrete, heating, insulation – a lot of the components that go into building a home.

“There’s an uptick in the U.S. housing construction industry. So there’s a little more competition for materials,” said Whitney. “It’s a supply and demand thing. They’re a bigger market than we are and they’re starting to come alive. It’s going to drive up those basic costs for us here.”

He said most of the builders have been absorbing a lot of the cost increases from 2012 and 2013 but with the current sellers’ market in the resale sector, characterized by low supply and high demand, that will also impact decisions made by some builders on prices this year.

“Probably one of the biggest components that builders have to be aware of is the upward pressure on land prices, which is a huge component in the price of a home,” added Whitney.

“So if it’s costing a developer more to bring land to market, or if there’s a shortage of (land) and they’re charging more, the house price is going to be higher,” said Whitney.

Teresa Centanni, area sales manager for Douglas Homes in the Kinniburgh community in Chestermere, said prices are going up for a number of reasons including a strong economy, attracting more people moving here, which is driving up housing demand. Also, there is a low inventory of active listings in the resale market these days.

She said homebuyers like the idea of a builder’s warranty on a new home and having the ability to have some input on the home’s specifications before it is built.

“We already had a price increase on September 1. Our trades increased their prices due to the flood (in June) and there’s going to be another three to four per cent price increase they’re predicting for March, April. We’re trying to do our best to keep our prices.”

According to the CMHC, the number of single-detached absorptions in the Calgary CMA until the end of November was 5,622. It’s the latest data the agency has for the market. In 2012, there were 5,429 absorptions which was up from 2011 at 4,733.

The following is the Calgary CMA single-detached absorbed price for each year back to 2000, according to the CMHC: 2000, $225,996; 2001, $239,454; 2002, $242,525; 2003, $267,106; 2004, $285,321; 2005, $315,796; 2006, $353,662; 2007, $474,511; 2008, $581,800; 2009, $547,795; 2010, $514,466; 2011, $547,670; 2012, $580,135; 2013 (forecast), $583,000; and 2014 (forecast), $598,000.“We’re starting to see growth in prices for new homes. There’s a number of factors contributing to this,” said Richard Cho, senior market analyst in Calgary for the CMHC. “One is our economy has been growing so with that we’re seeing stronger demand for housing. Also, with the supply in the resale market coming down as well, we’re seeing more people look to the new home market for their housing needs.

“Also, with the new home price, we’re also seeing more pressure on costs, materials, labour. That’s also contributing to the increase in the home price.”

He said labour market conditions, demand for materials and land costs are expected to maintain upward pressure on home prices this year.

As a comparison, the following is the average yearly MLS sale price for single-family homes in the city of Calgary, according to the Calgary Real Estate Board: 2000, $194,202; 2001, $201,137; 2002, $221,028; 2003, $237,081; 2004, $251,558; 2005, $287,125; 2006, $400,081; 2007, $471,852; 2008, $460,057; 2009; $442,828; 2010, $461,420; 2011, $466,509; 2012, $481,259; and 2013, $517,887.

 

© Copyright (c) The Calgary Herald

Calgary MLS listings significantly down from last year Pushing prices upwards

The single-family home inventory of 1,515 MLS listings is the lowest level to begin a year since 2006 and it’s the second fewest active listings in a decade to begin a year, says a Calgary realtor.

According to research by Mike Fotiou, associate broker with First Place Realty, there were 2,236 active listings in the city’s overall real estate market to begin the month of January, down 17.9 per cent from a year ago.

In January of last year, there were 1,267 fewer homes for sale in Calgary, representing a 31.8 per cent reduction in listings from the 3,989 the city had to start 2012.

“Calgary’s market has worked through the glut of inventory we experienced after the boom in 2008 when speculators expecting house prices to continue their meteoric rise were left holding multiple properties,” said Fotiou. “Record levels of net international and interprovincial migration in Alberta over the past couple years has resulted in high demand for housing. In Calgary’s resale market, continued strong sales have kept inventory low despite a rise in new listings.

“The new home sector has benefited as buyers looking for quick possession turn to builder spec homes. We’ll likely see more construction this year as new home builders step up to meet demand.”

As of Sunday, Calgary Real Estate Board data indicates total active listings in the city at 2,302, down 17.46 per cent from a year ago while the single-family inventory has dropped by 18.39 per cent to 1,549.

The lack of listings, combined with continued demand, has pushed prices upwards. Calgary’s resale housing market finished 2013 with all-time records in average sale prices for total MLS ($456,703) and single-family homes ($517,887).

Records were also set in 2013 for the median sale price for total MLS at $401,000 and for single-family homes at $450,000. The median price rose by 5.53 per cent from the previous year for total MLS and it was a 7.14 per cent hike in the single-family market.

Ann-Marie Lurie, chief economist at CREB, said it’s only a week into January so it’s difficult to see what the trend will be for sales and listings during the month.

“What we had been seeing throughout last year is that in the second half of the year those listings were actually starting to improve. The level of new listings,” she said. “Now, overall the inventory levels are still relatively low compared to what they had been in previous years.

“I would be concerned if I still saw those active listings basically declining and new listings declining. That would concern me more than what I am seeing now. Because we’ve seen new listings start to rise, that actually means that decline in active listings is starting to improve.”

On a historical basis, she said, active listings are still trending higher than the lows the real estate market experienced in 2006 during the housing market boom.

“That’s a good sign. We’re not as tight as we were back then,” said Lurie.

“Looking forward, active listings they have been declining. Will they continue to decline? It will depend on if we continue to see these new listings rising. If new listings keep going up, this should help alleviate some of the supply pressure in the market. That tends to happen as prices increase. Another thing to note is you’re starting to see some increased activity in the new home sector which should start to ease some of the pressure on the resale market.”

 

City of Calgary MLS Market
Year
Sales
New
Listings
Sales to
new listing ratio
2004
22,842
35,230
0.65
2005
26,833
32,962
0.81
2006
27,426
37,539
0.73
2007
26,611
44,644
0.60
2008
19,084
45,244
0.42
2009
20,668
32,588
0.63
2010
17,218
36,944
0.47
2011
18,494
34,068
0.54
2012
21,204
31,844
0.67
2013
23,489
32,153
0.73

 -Source: Calgary Real Estate Board

 

© Copyright (c) The Calgary Herald

Calgary home values close to boom levels, despite flood impact

 Calgary home values are nudging 2007-08 property boom levels, with sharp declines in flood-hit neighbourhoods unable to check the city’s real estate growth.

The city’s 2014 property assessments, released Friday, showed values of properties outside areas badly damaged by the June floods have risen six per cent since last year.

Citywide, the typical home is now worth $430,000, up from $410,000 in 2013.

That’s the highest level since 2008, when the boom lifted the median price to a record $447,500.

“We have certainly seen a really strong increase, and certainly a resetting of some of those values back before some of the financial crisis happened,” said city assessor Nelson Karpa.

Many communities saw assessments rise more sharply than the six-per-cent median, particularly those in northeast Calgary and those hugging Nose Hill and Fish Creek parks.

Elbow Park and Roxboro were the only neighbourhoods where assessed values dropped.

Calgary Real Estate Board (CREB) economist Ann Marie Lurie said the citywide rise was likely being led by a surge in demand for single family homes.

“A single family home under $500,000 have been selling quicker and their prices are increasing.

“We have finally pushed above those unadjusted (for inflation) levels. We’ve pushed above those peaks that we saw in 2007 (for single family homes).”

The trend was likely stronger in parts of the city which registered value increases above the six per cent average, she said.

“It could be that those areas have more homes on that lower end of the (single family) market.”

Value increases for condos and townhouses still trailed single family properties, she said, despite strong recent performance.

Price growth for single family homes in 2013 was 7.8 per cent, CREB figures showed, compared to 8.7 per cent for condos.

However, condo prices in the city took a bigger hit after the 2007 boom, Lurie said, and were yet to recover to that peak.

Calgary property taxes are based on the assessments. The city council set this year’s property tax hike at five per cent, but all homeowners whose property assessment rose by more than the six per cent average will pay a greater increase and people with lesser value rises or drops will face a lesser one.

Realtors often warn that assessments aren’t a substitute for actual market value. Assessors normally don’t visit homes, and they only consider neighbourhood home sales up to the previous June 30 — which means they’re already six months behind sales trends.

Residents and business owners can review assessments and appeal by March 4.

© Copyright (c) The Calgary Herald

Booming luxury market pushes Calgary house prices to records

A booming luxury market, and tight overall conditions with listings not keeping pace with demand, has pushed Calgary house prices to unprecedented levels.

Average sale and median prices hit all-time records for the city in 2013 for both total MLS transactions and in the single-family home category, according to data released Thursday by the Calgary Real Estate Board.

The average sale price for total MLS reached $456,703 for the year, up 6.54 per cent from 2012, while the single-family average price rose by 7.61 per cent to $517,887.

The median sale price for total MLS was $401,000 and it was $450,000 for single-family homes. The median price rose by 5.53 per cent from the previous year for total MLS and it was a 7.14 per cent hike in the single-family market.

Also, December capped a solid year for the residential real estate market with the highest-ever monthly average sale price at $527,764, eclipsing the previous record of $526,546 set in June 2013.

“Momentum was building from the last quarter of 2012,” said Christina Hagerty, a realtor with RE/MAX Realty Professionals in Calgary. “We approached 2013 with low interest rates, one of the lowest unemployment rates in the country and the lowest vacancy rate in the past decade. Employment growth and higher than expected net migration into the city helped support the demand for housing and increased sales and pricing. 2013 was an extremely busy year for us with informed and prepared purchasers.

“People talk about the flood adding to this, but I focus on the amazing ability for a city to rebound in a very short period of time. Something that may have devastated other major centres. I believe that this is largely due to the sense of community and the job market allowing people the ability to rebuild.”

The previous records for average sale prices were set in 2012 at $428,649 for total MLS and $481,259 for single-family homes. The previous records for median prices were set in 2007 at $382,000 for total MLS and in both 2007 and 2012 at $420,000 for the single-family market.

Average prices in the city ballooned this year as a result of a strong luxury market that set a record for most transactions ever at $1 million or more.

devastated other major centres. I believe that this is largely due to the sense of community and the job market allowing people the ability to rebuild.”

According to Mike Fotiou, associate broker with First Place Realty, there were 727 luxury home sales in 2013, which was a 33.6 per cent hike from the previous annual peak in 2012. The year was marked by 10 consecutive months of new monthly sales records. Only January and December did not set records in 2013.

Total MLS sales in the city reached 23,489 units in 2013, up 10.78 per cent from the previous year. New listings of 32,153 were up 0.97 per cent but active listings at the end of December were down by 17.80 per cent to 2,235.

“Companies are recruiting professionals across Canada and globally and this has put Calgary on the map as a thriving metropolis of opportunity and a safe place to raise their families,” said Hagerty. “With vacancy rates at one per cent and an abundance of job opportunity, there is a confidence in the city. 2014 looks to continue with solid growth fueled by sound fundamentals.”

MLS sales and percentage increase from 2012 for different housing categories were: single-family, 16,302, 7.92 per cent; condo apartment, 4,007, 14.45 per cent; condo townhouse, 3,180, 22.40 per cent; and towns, 4,516, 13.81 per cent.

Average sale price and percentage increase from 2012 were: single-family, $517,887, 7.61 per cent; condo apartment, $299,517, 5.17 per cent; condo townhouse, $341,116, 7.73 per cent; and towns, $381,884, 9.55 per cent.

Median price and percentage increase from 2012 were: single-family, $450,000, 7.14 per cent; condo apartment, $261,000, 3.78 per cent; condo townhouse, $306,000, 6.45 per cent; and towns, $355,700, 6.18 per cent.

Scott Bollinger, broker with the ComFree Commonsense Network, said prices in Calgary climbed because of increased sales and listings not keeping pace with the demand.

“Most notably in 2013 we saw rising wages, low interest rates and record in-migration. So it’s not surprising after three to five years of relatively little price growth, and despite the steady employment and the wage growth along with record low interest rates, that prices surged this year,” he said.

“Add to that the Alberta and Calgary economies outperformed almost every other region in Canada in 2013 by a wide margin, which had the effect of attracting all of those people. But the interesting thing is that 70 per cent of the net migration to Calgary in particular was international. And the other thing about the migration was that we set a record this year for the growth of the cohort of ages between 25 and 45 and those people, along with the international crowd, are most likely to engage in household formation.”

Bollinger said he is surprised that the listings didn’t catch up with the sales. He said the market might expect to see more of a reaction from the listing side early in the new year.

“If we don’t see that increase in listings, I think we’re going to continue to see farily significant price increases,” said Bollinger.

In a statement, Ann-Marie Lurie, CREB’s chief economist, said sales growth exceeded expectations in 2013, pushing above long-term trends.

“Two consecutive years of elevated levels of net migration, combined with an improving job outlook and confidence surrounding long-term economic prospects, supported the demand growth,” she said.

“In 2014, both sales activity and prices are expected to improve, but not at the same pace recorded this year. While factors influencing demand will support growth in 2014, rising listings and increased competition from the new home sector should alleviate some of the supply pressure in the market.”

Those factors, combined with potential increases in long-term lending rates, should take some of the steam off the exceptionally strong price growth recorded in 2013, said Lurie.

 

© Copyright (c) The Calgary Herald

Alberta expected to outperform national housing markets – Tight supply conditions to lift prices

Alberta will likely outperform national housing markets in 2014, says the new Global Real Estate Trends report released Friday by Scotiabank Economics.

“Relatively firmer employment and income gains and strong population growth are expected to underpin modestly higher home sales and steady new construction, while tighter supply conditions lift prices,” said the report authored by Adrienne Warren, the bank’s senior economist and real estate specialist.

The report said Canada’s housing market in 2013 outperformed expectations. The end-year tally for national home resales will be largely on par with 2012 and in line with the average pace of the past decade, it said.

National prices are on track for roughly a five per cent annual gain “with the average skewed higher by the strong sales rebound in several high-priced markets, including Vancouver and Calgary.”

According to the Calgary Real Estate Board, year-to-date up to Thursday, there have been 23,172 MLS sales in the city, up 10.92 per cent from the same period last year while the average sale price has risen by 6.54 per cent to $456,849.

The report said “a moderately lower level of resale transactions” is expected nationally in 2014. But steady job and income gains combined with strong population growth in the key first-time homebuyer demographic will continue to underpin housing demand.

“Overall market conditions are expected to remain fairly well balanced, with sellers responsive to underlying market conditions,” said Warren. “We expect national average home prices will be relatively flat next year. Downside price risk is greater in the more amply supplied high-rise segment than for single-family homes.

“The risks to the Canadian housing market appear fairly balanced. Cautious business hiring, muted wage growth, high household debt levels and affordability pressures could lead to a sharper slowdown in housing activity in 2014. At the same time, gradually improving global growth, still-attractive borrowing costs and population growth in key demographic segments are supportive of housing demand.”

 

© Copyright (c) The Calgary Herald

Calgary home price growth doubles national average: CREA – Year-over-year hike of 8.82% best in Canada

Calgary year-over-year home price growth was the best in Canada in November and more than doubled the national average, according to the Canadian Real Estate Association.

The association’s MLS Home Price Index, released on Monday, said prices in Calgary have risen by 8.82 per cent from a year ago while in Canada, for 11 major centres surveyed, they were up by 4.11 per cent.

The index tracks benchmark prices in Canada’s housing markets.

CREA said MLS sales across Canada in November rose by 5.9 per cent to 32,411 units. They were up by 18.7 per cent in Calgary to 2,173 units and increased by 13.1 per cent in Alberta to 4,563 sales.

The average sale price in Canada was up by 9.8 per cent to $391,085 and increased by 7.5 per cent in Calgary to $445,114 and by 5.3 per cent in Alberta to $385,217.

CREA also released a revised residential market forecast on Monday. It said sales in Alberta this year are projected to reach 66,300 units, which is a 9.8 per cent hike from the previous year and the best growth rate in the country. Sales will rise an additional 3.5 per cent in 2014 to 68,600 units.

Across Canada, the association is forecasting 0.8 per cent growth this year to 458,200 sales and 3.7 per cent growth in 2014 to 475,000.

As for the average sale price, CREA is projecting it to rise by 4.9 per cent this year in Alberta to $381,100 followed by 3.4 per cent growth, the best in Canada, in 2014 to $393,900.

Across Canada, the association is forecasting 5.2 per cent price growth this year to $382,200 and 2.3 per cent growth in 2014 to $391,100.

“In staggering contrast to the dire forecasts early this year, precisely one of the 26 largest cities in the country has reported a drop in average prices so far this year — Victoria, with a minuscule 0.6 per cent sag,” said Doug Porter, chief economist with BMO Capital Markets. “All of the other 25 cities have recorded single-digit price gains, with the median city posting a non-threatening 3.6 per cent rise.

“When judged by total sales volumes, a measure that combines both price changes and the number of units sold, the hottest markets this year have been Calgary, Edmonton, and, against all expectations Vancouver. All three reported double-digit volume increases, the only cities in that category.”

 

© Copyright (c) The Calgary Herald

December weather not deterring Calgary homebuyers – MLS sales on the rise while listings fall

The weather outside may be frightful but it hasn’t had an impact on December’s residential real estate market in Calgary as sales continue to outpace last year’s numbers.

In fact, despite recent winter storms, with their dropping temperatures and dumps of snow, sales in the city are actually higher than new listings this month making it a strong sellers’ market right now.

Bryon Howard, realtor with RE/MAX House of Real Estate in Calgary, said the city’s real estate market currently is characterized by a lack of inventory and good demand.

“We’re seeing multiple offers. Anything that’s priced well is selling,” he said. “The market’s great.

“I think for certain you’ll see prices move up this month.”

According to the Calgary Real Estate Board, total MLS sales in the city so far this month, up until Thursday, were 546 transactions, up 14.95 per cent from the same period a year ago. New listings of 511 are up by 1.19 per cent. Active listings of 2,865 are down 18.77 per cent.

The tight market has pushed sale prices higher this month than a year ago. The median price of $406,000 is up by 7.98 per cent while the average sale price has risen by 0.91 per cent to $457,758.

“We’re in a strong seller’s market,” said Howard. “We have no reason to think that’s going to change based on everything we know in terms of in-migration to the province and Alberta (economic) forecasts. It shouldn’t change too much.”

Howard said that while many people think nothing happens in real estate in the month of December he’s always felt it was a good month to sell.

According to CREB, the last time the city has had more sales than listings was December 2012. Before that, it was 2006. Right now, it’s looking like this December will be the 12th time since 1990 when sales eclipse new listings and seven of those have been in December.

The highest-ever sales-to-new-listing ratio was December 2005 with 1.299 sales for every listing. This year it’s sitting in fourth overall at 1.140.

So far this year, November has had the highest sales-to-new-listings ratio at 0.95.

The record for the average MLS sale price in December was set last year at $436,899 when there were 1,082 transactions for the month.

The record for total MLS sales during December was set in 2006 at 1,718 transactions.

 

© Copyright (c) The Calgary Herald

Calgary housing prices forecast to stabilize in 2014

The Calgary Real Estate Board is forecasting house prices and sales to continue to grow in the resale market in 2014.

On Tuesday, the board released its preliminary forecast, saying prices are expected to rise by 4.3 per cent next year and MLS sales are expected to climb by 3.6 per cent from 2013.

Ann-Marie Lurie, CREB’s chief economist, said strong migration levels over the past two years have combined with strong employment and wage growth to support further gains in 2014.

According to the board, year-to-date up to Monday, there have been 22,710 MLS sales in the city which is a 10.97 per cent hike from the same period a year ago. The median price has risen by 5.30 per cent to $400,150 while the average sale price is up by 6.51 per cent to $456,762.

Lurie said both sales and price growth this year exceeded expectations.

CREB’s full annual forecast takes place January 15.

 

© Copyright (c) The Calgary Herald