While Calgary’s booming housing market has far exceeded expectations in the first half of the year, price growth is expected to cool slightly over the next six months thanks to improving inventory levels.
According to the Calgary Real Estate Board’s mid-year forecast, the typical home price is expected to close out the year eight per cent higher than it was at the end of 2013.
“Calgary is benefiting from growth in the energy sector. This has supported employment growth and helped attract record levels of net migrants to the area last year,” said CREB chief economist Ann-Marie Lurie.
“These factors, combined with rising wages and low interest rates, produced exceptional sales growth in the resale market, starting in the second half of 2013 and carrying on into this year,” Lurie continued.
For the first half of 2014, sales activity in Calgary increased to 13,926 units, a 13.6 per cent increase compared to 2013. Although mid-term risks regarding energy access and price volatility remain, overall MLS sales are expected to end up 5.5 per cent higher than last year.
“While overall sales growth is forecast to rise by more than five per cent this year, second-half growth will be a stark contrast to the first half,” said Lurie. “Sales activity in the second half of 2013 increased by nearly 19 per cent and was well above long-term trends for that period. While sales growth in the second half of this year will appear unimpressive following double-digit gains in the first half, overall levels will likely remain relatively strong and above long-term trends.”
The full report can be seen here.