Alberta’s real estate market is predicted to perform even better in 2014. Consider some contributing factors:
- population growth rose to 3.5% y/y in Q3 – the fastest
pace in 33 years!
- the economy continues to grow at firm pace, with GDP growth expected to be 3.3% in 2014
- Alberta home resales revved up by 7.8% in the third quarter, which was the fastest pace in nearly three years
RBC states that “strong market momentum is likely to persist in the year ahead given the province’s very bright economic prospects.”
For Calgary specifically, its “hot labour market & fast-rising population, both super-charged by a booming provincial economy” are the main factors driving homebuyer demand.
RBC’s forecast is inline with CMHC which believes that job creation and net migration will continue to be key drivers of the resale market. MLS® residential sales in Calgary are forecast to increase 2.7% to 30,000 units next year.
With low resale inventory, new housing starts for the Calgary CMA in 2014 is expected to rise 12%. More construction, more jobs, more people moving to Alberta. 2014 is shaping up to be a good year for our province and city.