Employment growth, increased migration, and economic expansion are factors that will lead to increased average house prices in Alberta this year and next according to CMHC’s Housing Market Outlook (Q2 2012) released today.
Alberta’s MLS® average price is projected to rise to $360,900 and
then to $371,500 in 2013.
Interestingly, CMHC believes all provinces will be showing year-over-year increases in Q2 next year – including BC.
Average Resale Price Forecast from CMHC (click to enlarge image)
Alberta Migration
2011 Q4 migration to the province was the strongest fourth quarter since 2006.
Net migration to Alberta in 2011 reached 45,039 people, over double the total from 2010. Migration to Alberta is projected to rise over the forecast period to 46,300 in 2012 and 46,200 in 2013.
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You can read CMHC’s entire report here
Pingback: CMHC: Alberta House Prices to Increase in 2012 & 2013 | Calgary … « larrymatthews
I don’t understand how prices are going up. I’ve seen prices in Edmonton coming down (houses over $600000). In addition, the new workers are coming on temporary permits (they will rent no buy), and if they buy, then they will target a market of $400000 houses or less. However, they will not buy immediately. With new rules of mortgage, they will need to save at least for 4 years in order to have a good downpayment…….
How the prices will go up? Less demand….more supply….
Simple Econ 101
The basis of prices going up are simply as you stated that the rental market will shrink causing increased prices (including rent). the more people that come in to the province the higher the demand and higher the price.