According to the Canada Mortgage and Housing Corp, the average MLS residential sale price in Calgary will jump by more than $20,000 over the next two years.
The third quarter 2012 Housing Market Outlook reported that the average MLS sale price in Calgary will go from $402,851 to $413,000 in 2012 and then up to $424,000 in 2013. The report also predicts that housing starts in Calgary will rise from 9,292 to 12,000 this year, but fall back to 11,700 in 2013.
Senior market analyst in Calgary for the CMHC Richard Cho said, “The economy in Calgary has improved compared to the previous year and the trends that we have seen thus far are expected to continue in the months ahead.”
He went on to note that “job growth, relatively low mortgage rates and higher average earnings will all contribute to housing demand. Net migration will also be a key contributor and we have already seen some encouraging numbers at the provincial and city levels. Whenever we have an influx of people move to a region, naturally they are going to look for a place to live. Some will look to the rental market while others may choose to buy an existing home or build a new one. Housing demand this year will be supported by a number of different fronts.”
The CMHC says that Alberta’s housing market is supported by economic growth and job creation.