Calgary Real Estate Market Flying High, Good Things Expected For 2013 And Beyond

Posted by Alan Zunec on Wednesday, March 6th, 2013 at 1:07pm.

The real estate market across Western Canada is largely tepid. Calgary, though, is a bit of a surprise. It is the only market that is showing positive sales, and in a big way. TD Economics released a report that showed Calgary ended 2012 with a 14.3 percent increase in sales compared to 2011. The Alberta city also saw a record 38.2 percent increase in housing starts over that same time period. Additional permits are on the books, meaning that even more developments are expected to start in the near future.

Compare that to Vancouver, which was the hottest sales market in the country not too long ago. That city ended 2012 with a 26 percent decrease in housing resales compared to the prior year.

TD Economic also predicted that average home prices in Metro Calgary and surrounding areas will increase from the $411,927 seen at the end of 2012 to $423,400 for 2013. Additionally, the firm expects average home prices to reach $431,400 by the end of 2014.

In 2012, the Calgary Real Estate Board reported 27,212 residential sales through the MLS system. That is an increase of 18.84 percent over 2011. TD is expecting the number of sales for 2013 to reach 27,700 and decrease by just a hair to 27,500 for 2014. MLS sales are expected to increase by 1.37 percent in 2013 and 2.59 percent by the end of 2014.

The economic real estate growth in Calgary is considered quite strong, according to TD’s senior economist Sonya Gulati, who notes that the trend continues in the employment picture. Gulati attributes these figures to Calgary getting the benefit of Alberta doing so well on a provincial level. As long as the employment picture remains positive, the Calgary real estate market will continue its upward trend.

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