At least, that’s how Sana Stante, president of the Calgary Real Estate Board, sees it.
“I believe it’s imminent that we’ll start to see the result of all those economic indicators come to fruition and hit the ground, get traction this coming year. It’s got to happen,” said Stante in an interview at the end of 2011.
What are all those economic indicators he’s talking about? Well, there’s the increased net migration and the continued employment growth in both the city and the province. Those definitely don’t hurt!
When publishing Stante’s comments, the Calgary Herald included a round-up of all the residential real estate market info relevant to the city in 2011. It went a little something like this:
“In 2011, there were 13,186 single-family MLS sales in Calgary, up 9.06 per cent from the previous year while the average sale price increased by 1.14 per cent to $466,402. There were 5,382 condo sales, up 3.98 per cent, but the average price dipped by 0.94 per cent to $287,172.”
Quoted in the Herald, Stante also said that 2011 was more typical than some past years in the local real estate market, explaining that it’s typical of “what you might expect in this cycle of a normal recovery.”
“In that cycle of a typical recovery you start to have some decreasing supply and we’re starting to see that now,” he continued.
“”We’re starting to see decreasing supply and the next phase is for demand to pick up. All the economic indicators are pointing to that. We’ve been saying all year that we are due for more in-migration which is a leading indicator for real estate, for the housing market. We’ve just started to see it happen. So it’s not a matter of whether it will happen. We see oil companies are filling up space. That tells you that they’re hiring. It tells you that jobs are coming. But what we don’t know is when they’re going to hit the ground in the real estate market. It’s more a matter of when than if.
Not everyone is on board with Stante’s optimism. While a recent report by TD Economics predicted residential sales and prices would rise in 2012, they also forecast dips in both will occur in 2013.
So who’s on point and who’s just not on the ball? It’s hard to say, but time will tell soon enough!