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Calgary Housing Market Expected to Remain Steady in 2013

Calgary Housing Market Expected to Remain Steady in 2013

CREB is predicting that the resale housing market in Calgary and the surrounding area will experience moderate sales and house price growth this year. This is partially due to slower growth trends in employment, which will play a role in further lowering migration estimates. Still, the area is expected to continue to see good resale activity and to continue moving toward a market recovery.

stats3According to the latest CREB report, Calgary's sales growth will increase to 2.2 percent in 2013 while house prices will grow by 2.9 percent. Sales growth, particularly within the single-family market, is expected to fall due to lower migration estimations. As can be seen in this graph, migration to Calgary reached a 6-year high in 2012. Although migration is expected to all off this year, the levels are still expected to remain higher than the four previous years.

The number of available listings is also expected to fall in 2013. Nonetheless, experts predict the market will remain well supplied and prices will continue to grow. Still, they are not likely to reach the levels that were achieved in 2012. While 2012 saw growth of nearly 15 percent, representing the greatest growth since the recession, it is not likely to enjoy the same growth this year. As this graph shows, new listings will continue to shrink, which will limit the potential for sales growth. Growth in the single-family home market will be further hindered by housing policies that encourage multi-family development. Therefore, single family homes are expected to only grow by 1.8 percent.

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While the single-family market is expected to see a slowdown in activity, the condominium market is expected to enjoy some growth in 2013. Overall, the market is expected to grow by 3 percent. As the chart shows, condo apartments are expected to appreciate by 2.4 percent while condo townhouses will appreciate by 2.8 percent.

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While experts predict a "balanced" resale housing market for 2013, there are still numerous risks to consider. For example, the housing market is closely tied to the oil sector. Pipeline constraints and a lack of access to diverse markets is impacting the price of oil. If the price trends continue, the job sector could also be affected. Trends in oil and natural gas prices can be seen in the chart below.

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In all, while things may slow down a bit over the next year, the Calgary housingĀ  market is expected to remain strong through 2013.

Discussion

#1 By Craig Simpson at 1/23/2013 9:13 PM

Our housing market is really starting to go up a few notches. We've noticed less foreclosures and a little more short sales but mainly more owner/seller's which is really great for our market.

#2 By Dave Grbich at 1/23/2013 9:15 PM

Great post here crystal. The Savannah area has seen its share of ups and downs but we are noticing an influx of better homes on the market, more serious buyers that are really interested in finding exactly what they're looking for but still not willing to go to the low at the bottom of the barrel for some foreclosures. We also for see the 2013 is going to be a good year

#3 By Crystal at 1/23/2013 9:18 PM

Many centres are forecasting a good 2013 - it is nice to see the housing market recover on a wider scale.

#4 By Jonathan at 1/30/2013 8:38 PM

We are noticing much less foreclosure business over the last 6 months. Good deal for home owners and time to switch up our marketing. LOL

#5 By Kim Edwards at 3/21/2013 0:56 PM

We are really seeing a better start to this year than most years over the last 5. People are looking for more vacation and 2nd homes again and that's right up our alley.

#6 By Shirley at 4/5/2013 4:57 PM

We are seeing a huge influx of cash buyers. So many so that homes are flying off the market and many first time homebuyers are left in the dust. Such a switch from just a few years ago.

#7 By Crystal at 4/11/2013 3:50 PM

Sounds like your market is very hot- ours is very hot here right now as well. It is amazing how far we have come in the past 12 months here in Calgary

#8 By Crystal at 4/11/2013 3:55 PM

That is an excellent indication of an economy that is under recovery. People do not buy vacation homes in uncertain times. Thanks for the comment.

#9 By Crystal at 4/11/2013 3:58 PM

Less foreclosures are a good indication of market recovery.

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