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CREB unveils the 2011 forecast for the Calgary Real Estate Market. Highlights include:

  • convergence of large slection inventory, low interest rates and good affordability in 2011
  • risk is that affordability will erode precipitated by energy costs and taxes
  • 20% increase in sales activity over last year in single family homes
  • average price forecast increase by 4.1% for single family, 1.8% condominiums and 2.6% towns
  • market dependent on projected job creation and subsequent in-migration
  • buyers favoring inner city communities
  • the action is in green, walkable, mixed use developments in sustainable communities
  • 2011 will show slow, incremental growth that will build toward the end of the year

For more information contact Sano or read the full report here.

Affordability Drives Calgary”s Housing Market.

CREB released their monthly statistics for January 2010 yesterday with the following highlights:

  • Affordability buoyed by low interest rates will support a balanced housing market.
  • The recovery is still fragile and demand should build as the year progresses
  • First time home buyers continue to drive the recovery (homes below $400,000 will lead demand)

My take differs slightly in that I am predicting a more bumpy online blackjack recovery. Present demand is being fuelled by Buyers rushing to the market in anticipation of a rate hikes near summer 2010. One could expect the market may stall after this time when this anticipation ends and interest rates increase to more normal (still low) levels.

Currently, we are witnessing a brisk market in the mid-lower end with multiple offers becoming nearly the norm on any product that is priced properly (at market value). This may provide good opportunities if you are selling into this market and still good buying opportunities until prices come back to previous levels.