Modest Growth for the Spring Calgary Real Estate Market
'Modest' Calgary real estate growth expected in spring
In the Calgary deep freeze with snow and cold weather, for a skier, it is a welcome sight and many of us are planning exotic trips with sunny skies and a dip in the ocean. Spring is expected to come late this year, at least the predictors think so, yet it is sure to bring some kind of optimistic thoughts and also it will be a period of renewal.
According to a senior market analyst from Canada Mortgage and Housing Corp, Richard Cho; Next spring is sure to justify the waiting of Calgary home builders.
The Calgary real estate market looks uplifting for new home construction single family homes still to continue at a modest rate, reason is nothing but the presence of the oversupplied Calgary resale homes; also the downward sales are provoking to a greater extent. According to the Calgary Real Estate Board, there are still 6000 homes for resale (both condo and single-family).
According to Cho's prediction, single-family home construction will not pick up till the earlier part of next year, and this is because of the lifted active sales of Calgary resale houses in that period. However, there is possibility for it to come down further in the later part of next year.
In the year 2008, the number of houses built in Calgary was 4,400. It was 4,800 in the next year. At present the volume is forecasted at 5,900. It is expected that, by the year 2011, 6,100 houses will be built. Though the figures are not very impressive, yet these are in the upward pitch for the last three years.
The story is not the same for multi-family houses; in 2008 it reached its lowest level after 1996. Construction stared thereafter, which includes semidetached units, apartments and townhouses, and it reached the volume of 1543 houses in that year. This year, it reached a volume of 3,200.
According to Cho, in the coming year, though the number of the apartment will gain some more paces, yet builders are expected to show more interest in the resale business only. As a result, construction is expected to drop down by around 13% in the next year.
With three high eye-catching building; Drake by Grosvenor, Keynote by Keynote and the three-tower Bosa in the East Village have come out with some kind of relaxation. The Calgary real estate resale market is expected to drop down by 18% by this year, to a value of 20,300 units. Cho says that, growth in employment, and also the net migration will support the market to grow in the next year.
With only three months away, everybody is expecting for positive signs this spring for Calgary real estate.