Today, Canada Mortgage and Housing Corporation, (CMHC) released the Housing Market Outlook Report for the Calgary Metropolitan Area.
Here are a few of the highlights:
New Home Market: Total Housing Starts to Increase in 2014 [This is great news to ease the demand for resale homes that has been driving prices up and frustrating buyers who have to act extra-ordinarily quick in order to buy a home.]
New Home Market: The Average Sale Prices are expected to grow higher and faster in 2014 than they did in 2013. [Again, good news for the resale market as brand new homes were becoming serious contenders to the resale inventory of homes for many buyers.]
Sales in Calgary’s existing home market have trended up throughout 2013, supported by heightened net migration, job creation, and rising wages. Demand for resale homes will keep upward pressure on prices, especially with low vacancies in the rental market and elevated migration flows to Calgary. In 2014, new listings are forecast to record stronger gains as higher valuations encourage property owners to list their homes. As a result, price growth should moderate. On balance, the MLS® residential price is forecast to increase only 2.4 per cent in 2014 to average $447,000.
The interest rate outlook will continue to be supportive of housing market activity over the forecast horizon, as mortgage rates will remain low by historical standards. By the end of 2014, mortgage rates are forecast to be somewhat higher than in the third quarter of 2013. For 2014, the average for the one-year posted mortgage rate is expected to rise and be in the 3.25 per cent to 3.75 per cent range, while the average for the five-year posted mortgage rate is forecast to be -2% within 5.25 per cent to 6.00 per cent.