Calgary Real Estate sales and average home prices continue to increase into 2014. Since last year, prices have risen by 9.6% year over year and 1.1% month over month. Factors driving our seller's market are affordability, net migration, a tight rental market, and employment growth. Long term interest rates remain low and stable, encouranging buyers to enter the market. Also, our affordability is one of the best in the country compared to other major centres. Employment tends to be the greatest factor in our Calgary real estate market. As the Statistics Canada report issued recently showed, Alberta is responsable for almost all the new jobs generated in the past year - 82,300 of the 94,700 countrywide, or 87% - as the province saw employment rise an impressive 3.8%. Our rental vacancy rate hovers around 1.0% which is also pushing more buyers into the real estate market.
According to Canada Mortgage and Housing Corp., the Calgary CMA rental vacancy rate is forecast to rise to 1.2% this year. The CMHC said the average rento for a two-bedroom place in the Calgary region was $1224 in 2013 and that is forcast to rise to $1280 this year.
Currently, we are sitting at about a 2 months supply of Calgary Home properties available for Calgary Home purchasers. We are anticipating this will increase with ore homes coming on the Calgary market in March-May. We also anticipate that there will be more Calgary new home construction in 2014-2015. Housing starts in January increased well above what was recorded in January 2013. According to Canada Mortgage and Housing Corp., there were 1328 housing starts in the Calgary census metropolitan area during the month, up 84.7% from January 2013's 719 units. That should take the burder off the lack of supply in the resale market. The forecasted sales growth in 2014 is anticipated to be anywhere from 3.5-5% - this makes investing in real estate a good decision with hope of fairly quick equity growth.
Condo sales have increased in the $2-300,000 price range as some buyers look to more affordable options. Since the beginning of the year, condo sales have increased by 15% since last year, and new condo sales have increased by 11%. This trend is expected to continue.
In summary, figuring out the what, when and how to buy in the Calgary Real Estate Market can pose a lot of questions. Feel free to contact me Steven Hill, Calgary Realtor directly anytime with anyCalgary Realty market questions you may have.