Alberta 'on its way up'
for 2012
The Alberta housing market looks strong for
2012, said experts at a recent conference.
“The trend is on the way
up,” said Lai Sing Louie, regional economist for the Prairies and Territories
region of Canada Mortgage and Housing Corp. “There is momentum and growth is
expected for both single detached and multi-family homes.”
He was one of the
speakers at the recent 18th annual Alberta Housing Outlook Conference, which
was held at the BMO Centre in Calgary.
A strong domestic
economy and employment are being joined by immigration at an all-time high — 40
per cent higher than the past 20-year combined average — and five-year mortgage
rates at a 60-year low.
As a result, the
forecast for the Canadian housing market is positive.
The resale market is
expected to remain stable and house prices are expected to reflect modest
gains, disregarding the compositional effects of markets like Vancouver, said Mathieu Laberge, deputy chief
economist at CMHC.
In Alberta, housing construction starts are
expected to increase 15 per cent in 2012 to 29,200 units, the highest level
since 2007.
Meanwhile, the number of
MLS sales of resale homes in the province is expected to increase by nearly six
per cent to 52,800 units this year, rising to 53,900 units next year.
Louie said statistics
indicate that Alberta is still in a buyers’
market except for the Fort McMurray
area — where price growth is at six per cent, well above inflation levels.
Although both the
Calgary and Edmonton census metropolitan areas will likely experience lower
housing construction starts this year before rising in 2012, the good news is
that Calgary starts are forecast to increase 11 per cent to 9,400 units in 2012
— the best performance since 2008.
Add to that increasing
MLS sales in Calgary
— up six per cent to 22,200 units in 2011 and a forecasted increase to 22,700
in 2012 — that should alleviate a bit of the sting of the few previous years.
“There are several key
components driving the housing market in Alberta including the high price of
oil, net migration, a balanced market and increased economic growth,” said
Louie.
The big turnaround from
last year is tied to the labour market; low unemployment rates are really
fuelling the increased housing demand, he said.
“The economy is growing
in Alberta
and this is an attractive place to be,” said Louie.
©
Copyright (c) The Calgary
Herald
