Expanding Economy to Drive Demand for Housing in Calgary Region: CMHC
Demand for housing in the Calgary region is expected to increase next year as the economy expands, creating jobs and attracting more people here, says Canada Mortgage and Housing Corp.
MLS residential sales this year are expected to end the year at 22,200 units, an increase of 5.7 per cent from 20,996 in 2010, says the CMHC in its latest housing market outlook. released Friday.
Sales in the Calgary census metropolitan area in 2012 are anticipated to rise another 2.3 per cent to 22,700 units.
With elevated listings relative to sales, average price growth has been modest in 2011, says the CMHC report.
The average price for 2011 is forecast to be $402,000, up 0.8 per cent from 2010.
“As the supply in the resale market moves lower and conditions become more balanced, stronger price growth is expected next year. In 2012, the average price is anticipated to rise 2.2 per cent to $411,000,” it said.
Total housing starts in the Calgary CMA are on pace to decrease this year before rising next year.
“After a lower level of activity this year, new construction in 2012 is anticipated to rise as job creation, stronger net migration, and low mortgage rates support the housing market,” said Richard Cho, senior market analyst in Calgary for the CMHC.
Total housing starts next year are forecast to increase 11 per cent to 9,400 units, with gains in both the single-detached and multi-family markets.
Single-detached starts are forecast to reach 5,000 units this year, down 14 per cent from 5,782 units in 2010.
“Builders will encounter less competition from the resale market next year as listings moderate,” said Cho.
Single-detached starts are forecast to increase 10 per cent from 5,000 units in 2011 to 5,500 units in 2012. Following a 126 per cent gain in 2010, housing starts in the multi-family market, which include semi-detached units, rows, and apartments, have moderated this year, with some segments busier than others.
In 2011, multi-family starts are forecast to total 3,500 units, up 0.6 per cent from 3,480 units in 2010. Multi-family starts are projected to rise 11.4 per cent to 3,900 units in 2012.
mtoneguzzi@calgaryherald.com
MLS residential sales this year are expected to end the year at 22,200 units, an increase of 5.7 per cent from 20,996 in 2010, says the CMHC in its latest housing market outlook. released Friday.
Sales in the Calgary census metropolitan area in 2012 are anticipated to rise another 2.3 per cent to 22,700 units.
With elevated listings relative to sales, average price growth has been modest in 2011, says the CMHC report.
The average price for 2011 is forecast to be $402,000, up 0.8 per cent from 2010.
“As the supply in the resale market moves lower and conditions become more balanced, stronger price growth is expected next year. In 2012, the average price is anticipated to rise 2.2 per cent to $411,000,” it said.
Total housing starts in the Calgary CMA are on pace to decrease this year before rising next year.
“After a lower level of activity this year, new construction in 2012 is anticipated to rise as job creation, stronger net migration, and low mortgage rates support the housing market,” said Richard Cho, senior market analyst in Calgary for the CMHC.
Total housing starts next year are forecast to increase 11 per cent to 9,400 units, with gains in both the single-detached and multi-family markets.
Single-detached starts are forecast to reach 5,000 units this year, down 14 per cent from 5,782 units in 2010.
“Builders will encounter less competition from the resale market next year as listings moderate,” said Cho.
Single-detached starts are forecast to increase 10 per cent from 5,000 units in 2011 to 5,500 units in 2012. Following a 126 per cent gain in 2010, housing starts in the multi-family market, which include semi-detached units, rows, and apartments, have moderated this year, with some segments busier than others.
In 2011, multi-family starts are forecast to total 3,500 units, up 0.6 per cent from 3,480 units in 2010. Multi-family starts are projected to rise 11.4 per cent to 3,900 units in 2012.
mtoneguzzi@calgaryherald.com
