The latest report from the Conference Board of Canada indicated that short-term price growth predictions on a year-over-year comparison in the Calgary resale market are expected to be between 5 and 6.9 percent. According to the report, the average sale price in Calgary hit $423,917 in April, accounting for a 4.6 percent increase on a year-over-year comparison.
The report did indicate, however, that sales on a seasonally adjusted annual rates remained unchanged on a year-over-year comparison, hitting 28,548. In addition, listings fell to 44,364 in April, down 1.6 percent on a year-over-year comparison. As there is much divergence between markets in Canada, the board noted Calgary’s housing is well-balanced.
Calgary and Edmonton see growth in last three months
According to a recent report from BMO Capital Markets, Calgary and Edmonton were the only two major markets across Canada to see growth in the three-month moving average ending in April. According to the report, sales were up 3 percent in Calgary and 1.2 percent in Edmonton during that period of time when compared to the same three months last year. The three-month moving average in Canada was down 10.9 percent showing just how well-off these markets are.
Sal Guatieri, senior economist for BMO, said that tight lending standards have affected the Canadian market as a whole, but Alberta’s housing market continues to be pushed along by its the strong economy.
“Lack of pent-up demand, with homeownership rates near 70 percent, and elevated household debt have abetted the slowing,” Guatieri told the Calgary Herald. “Nationwide, sales are expected to stabilize this year amid steady job growth. Although long-term interest rates are likely to rise moderately next year, they should remain relatively low for some time.”
Guatieri noted that Alberta’s economy is expected to grow the most in 2014 and the housing market should continue to prosper as a result.
Calgary among the most affordable
While home prices are not necessarily low in Calgary, the average income of residents is higher, making the market among the most affordable in Canada.
“Calgary-area buyers continue to benefit from a strong provincial economy, accelerating population growth and attractive affordability,” said Craig Wright, senior vice president and chief economist, RBC, the Calgary Herald reported. “RBC (affordability) measures for Calgary compare favorably against both historical norms and the national housing average, keeping it one of the more affordable housing markets in Canada.”
source: Jencormortgage site