Calgary housing boom predicted

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Here is an article from the Calgary Sun predicting what we all know is coming – we are seeing the start of another Calgary Real Estate boom. The city of Calgary released their census yesterday showing an increase in population to 1,120,225 residents and growing every day. An interesting statistic that came out of the census is the increased population growth taking place in older established neighborhoods. This is due to higher density condominium development that is taking place in the inner city. All these new Calgarians need a place to live which increases the demand for homes and condos in the city. As many of my buyer’s have seen in the last few months, there is not much on the market, and good properties that are priced right are selling within days.

Calgary’s housing boom is back with a new forecast predicting a 25% jump in housing starts this year and climbing prices, with growth fuelled by a red-hot economy. The Canada Mortgage and Housing Corporation (CMHC) is forecasting a 24.8% increase in new homes being built this year, soaring from 9,292 units in 2011 to a projected 11,600 in 2012.

The corporation is also expecting the average home price to go up from $402,851 in 2011 to $410,000 this year and another increase in 2013 to $420,000. Richard Cho, a senior analyst with CMHC, said apartment-style housing is seeing the largest gains in new construction. “Improved job creation, rising incomes, increased net migration and low mortgage rates will support housing demand in 2012 and in the following year,” he said. Calgary is seeing plenty of job growth because it’s home to energy companies and other businesses related to the industry, Cho said. The analyst noted last year the housing market was more in favour of the buyer. “This year, we’re seeing active listings trending lower as the price of sales is rising,” he said. “The market is more balanced compared to what we saw last year and so we’re expecting to see more new homes being started and more resales.”

Bob Jablonski, president of the Calgary Real Estate Board (CREB), said the spike in numbers is good news for the market. “It seems steady sales are happening, good activity going, and there’s a high consumer confidence out there,” he said. “The market activity is good, it’s been good all year and it’s getting better.” Jablonski said CREB’s forecast is usually much more conservative than CMHC. The real estate board’s forecast in January indicated housing starts in Calgary for 2012 would be closer to 9,400, a minor jump from 2011 and significantly lower than CMHC’s prediction. However, CREB’s prediction for an increase in average housing price is 2%, a tad higher than CMCH’s 1.8%. Jablonski said they’re going to update their own figures in August. 

Ald. Gian-Carlo Carra said it’s not surprising the housing boom is starting again in Calgary. “I think everyone is expecting that to be the case — that’s not necessarily a bad thing, it’s actually a good thing but there are challenges associated with it,” he said. The inner city alderman said the city needs to make sure that there’s a broad supply of housing options for everyone. “I remain completely bitterly disappointed that council was not more progressive in its approach to secondary suites,” he said. Carra said as housing prices increase and the supply shrinks, secondary suites are a good way to give owners another source of income and renters an affordable accommodation option.



2 Bedroom Near University – $219,900

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2 Bedroom, 1 Bath
804 sq ft
#804 4944 Dalton Drive NW
MLS # C3526491

Live the resort lifestyle in the Fortress! Play at the multiple tennis courts or relax poolside at the brand new refinished indoor pool. Renovated Gym with new equipment and change rooms. Party/meeting room. The Fortress has renovated many of the common areas and is currently undertaking massive landscaping project to beautify the grounds. This condo is in the perfect location – Walk to Safeway, Chapters, Co-op, and Canadian Tire. Walk to shopping at either Dalhousie shopping center or Northland Village Mall. 5 minute walk to the Dalhousie C-Train station for an easy commute downtown or minutes to the University. Great downtown views from the balcony and every room of this condo. Large open living and dining area with pass-through into the kitchen. Laminate flooring throughout including bedrooms. Large insuite storage locker. Washer hookups perfect for Euro-style all-in-one washer. Terrific for the first time buyer or investment condo.