While conservative housing sector watchdog, Canada Mortgage and Housing Corp. is now forecasting a “balanced” market for 2013 in Calgary, we note that current market stats indicate that Calgary’s residential demand is already (and once again) leading the nation. This confirms a rapidly tightening supply condition locally which suggests that growth in market prices for both new and existing housing in Calgary next year and beyond is now at hand.
This week the Canadian Real Estate Association reported that while annualized MLS sales have fallen by 9% over last year on a national basis, Calgary’s resale activity has risen by roughly 15%. Calgary’s comparatively slow recovery from the recession, combined with a broad consensus outlook for Alberta’s economic growth over the next couple of years has clearly “set the table” for Calgary to outperform the national residential market for the foreseeable future.
Coupled with the impact of the federal government’s recent policy changes regarding CMHC-insured mortgages, as well as the recent surge in gas prices, our forecast for a surge in demand for new, urban multi-family housing alternatives in Calgary is clearly beginning to crystalize.