Tomorrow, Canada’s major newspapers will report on Royal LePage’s vaunted House Price Survey and Market Survey Forecast of major Canadian residential resale markets. Their review of the Calgary market confirms that the city has swung through equilibrium in the residential market with strong price growth in all housing types confirming sellers’ market conditions for the 2nd quarter of 2013.
The recent catastrophic flooding throughout southern Alberta has impacted many inner-city neighbourhoods in Calgary, including my own, however this is not expected to have any long term negative impact on Calgary’s residential market or real estate demand generally. Short term impacts may be seen in certain trade services and the rental housing market, but the medium to long-term demand drivers remain unchanged.
Recent improvements in the near-term outlook for Canada’s commodities markets and the energy sector specifically further validate the outlook for Calgary’s residential market. A prominent local broker with Royal LePage is quoted as forecasting a further 6.5% increase in resale housing during the latter half of 2013.
The Calgary Stampede kicked off last Friday as planned despite massive flooding of the fairgrounds a mere 2 weeks prior. This accomplishment is emblematic of Calgary’s resolve and ability to withstand even catastrophic shocks. Our own investment focus on Calgary’s inner-city development sector is emboldened by this recent test and we look forward to sharing details of new initiatives with all registered parties shortly.
