Calgary’s Residential Market Expected to Remain Strong Through 2013

Posted by Alan Zunec on Wednesday, November 14th, 2012 at 6:33pm.

Forecasters at Royal LePage Realty are expecting the housing market in Calgary to continue its strong growth throughout 2013. The firm just published their 2013 Housing Market Outlook this past Wednesday and released it along with their predictions that by the end of 2012, some 25,500 homes will change hands. That is a 13.5 percent increase over sales in 2011. The prediction is that for 2013 there will be an additional ten percent increase in sales, ending up at 28,100 sales by that year’s end.

As far as price, the prediction for MLS sales is an increase of 2.5 percent to an average of $413,000 per home by the end of 2012, along with an additional two percent by the end of 2013, bringing the average to $423,000 per unit. It was noted that Calgary is seeing an almost unprecedented momentum, at least from that seen in the last several years. Consumer confidence remains high and the economic indicators show predicted solid growth, both of which fuel a healthy real estate market.

Across Canada 2012 was a prosperous year for the industry. In nearly 65 percent of major metro areas home sales were up despite the global economic uncertainty and the implementation of tighter mortgage and finance rules. Since the interest rates are expected to remain at record lows, this trend is expected to continue through the end of this year and into 2013. Next year seems even more promising because of an even better economic picture.

By the end of 2012, some 454,000 homes are expected to be sold nationwide, barely one percent less than the 456,749 sales seen by the end of 2011. Similar sales are expected for 2013. Nationwide, pricing for an average Canadian home is expected to be at around $364,000 by the end of 2012, about the same as in 2011. Those prices are expected to increase by about one percent in 2013, to an average of $366,500 nationwide.
 
Calgary itself will see sales in 2012 reaching numbers at or near those of the 2007 glory days. Some parts of the city are growing faster than others. The inner core has seen a bustle of activity, mainly because it is easily reached from downtown. The Foothills, Mount Royal, Marda Loop, Hillhurst and Killarney are all neighbourhoods seeing their values skyrocket, something that has not happened for years.

Neighbourhoods on the outskirts were also seeing a higher demand but the prices weren’t increasing as much as areas closer to downtown. Things really started to gel in the second half of the year when first time buyers were getting into the market, allowing other buyers to get into higher value homes.

Single family homes were the hottest sellers, especially those with price points under $450,000 which is where over 67 percent of sales in the residential market were made. Condominium sales only made up 16 percent of Calgary home sales.

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