Housing starts in the Calgary region are expected to fall this year by 8.9 per cent before rising 12 per cent in 2014.
The Canada Mortgage and Housing Corporation’s Fall 2013 outlook for the Calgary Census Metropolitan Area (CMA) predicts starts will drop to 11,700 units in 2013 before increasing to 13,100 in 2014.
“Following a nine per cent reduction in 2013, total housing starts in 2014 are forecast to rebound with gains in both single-detached and multi-family construction,” said CMHC senior market analyst Richard Cho. “Continued job creation and heightened net migration throughout the forecast period will contribute to the demand for new homes.”
By year-end, sales are forecast to reach 29,200 units, up 10 per cent from 26,634 in 2012. In 2014, job creation and net migration will continue to be key drivers of the resale market, the report says. Employment growth in 2014 will remain strong for the fourth consecutive year, while migration will be coming off a record high in 2013. Residential sales are forecast to increase 2.7 per cent in 2014 to 30,000 units.
The average residential price in Calgary is forecast to finish at $436,500 in 2013, up 5.9 per cent from $412,315 in 2012. (Tweet this fact)
Price growth is expected to rise 2.4 per cent in 2014 to $447,000. (Tweet this fact)
Here are the numbers in easy-to-read chart form:
Click here to read about CMHC’s Canada-wide forecast.