The local housing market statistics from November have been released for Strathmore, Airdrie and Calgary, and they look promising!
In Calgary, November housing market figures are indicative of an 8% increase over a year ago (Financial Post, 12/3/2012). When speaking to the Financial Post, Marie Laurie, chief economist with CREB noted, “despite elevated concerns regarding household debt and activity in other Canadian markets, the housing market continues to demonstrate resilience in Calgary (see below table). This is related to the migration, wage and employment growth recorded in the city” (Financial Post, 12/3/2012).
From the table above, we see that this price increase is reflected not only in single family homes, but also that apartments and townhomes have increased ~5% between January 2012 and November 2012. Furthermore, since March 2011, the Calgary market has increased by a staggering ~15%. To further help fuel the growth of Alberta’s housing market, the CMHC has predicted that mortgage rates will remain flat for the remainder of the year and increase only slightly in 2013.
According to the Canadian Mortgage and Housing Corporation, multiple starts in Alberta more broadly are estimated to reach just shy of 15,000 units in the fourth quarter, indicating a near 42% increase over the same period in 2011 (CMHC, 2012). With all major real estate markets projected to move to, or remain in balanced market conditions, the average MLS price of homes in Alberta in 2013 is now estimated to rise approximately 2.7% to $371, 600 (CMHC, 2012). Single-family home prices in Calgary specifically have already exceeded this estimate and as of November 2012, are hovering around $420,000 (ibid). These increases should not affect affordability more broadly as ownership costs as a percentage of household income look to remain below 40% in 2013, and continue to sit amongst the lowest in the country (RBC Economics Report, 11/2012).
Here’s to hoping these trends continue!
Ask your Century 21 PowerRealty.ca REALTOR for more advice on the up to the minute property market conditions. Power Realty agents specialize in properties in Airdrie, Strathmore, Drumheller, and Calgary. Call 403.823.2222 if you would like me to refer you to an agent in your area to evaluate your home.