The outlook for Calgary’s real estate market is quite positive if everything pans out as well as CMHC is forecasting.
According to their Housing Market Outlook for Calgary CMA (Fall 2014 Edition), MLS® sales are expected to increase through 2016, even though sales this year are already projected to be the highest level on record.
CMHC states that prices have increased this year due to “relatively low supply and housing demand being well supported by employment growth.” Prices are predicted to continue rising in 2015 and 2016.
Interestingly, the forecast “risks” associated with sales and prices are to the upside:
- If resale listings do not increase as anticipated, price growth will be stronger than expected
- If labour conditions in other parts of the country do not improve as much as anticipated, net migration to the Calgary region may be stronger than expected. This will increase housing demand, resulting in higher sales and additional housing starts than forecast
In the rental market, low vacancies has put pressure on rents which are also expected to rise over the next two years. This in turn “will continue to provide an incentive for investors to purchase condominium units to rent.”
However, CMHC cautions that “if a higher than expected number
of apartment units currently under construction find their way into
the secondary rental market, rental vacancies will increase more than
To download the entire CMHC report, click here