Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Calgary to escape price correction

Notify me of new replies via email
guest | 28 Jul 2011, 02:17 PM Agree 0

TD Economics has forecasted that the national average resale price will drop 10.2% over 2012 and 2013. But it looks like Calgary will escape this downward trend largely because it's already gone through much of its correction. TD Economics predicts the city's average price will rise to $405,800 in 2012, up from $403,700 in 2011. And by 2013, TD economics projects the average price will reach $410,500. That's 1.7% increase in the average home value at the same time house prices in Vancouver are expected to drop 14.8% from its peak. Calgary stands to gain even in the coming housing downturn because of its sound economic fundamentals. TD Economics expects crude oil to remain between $95 and $100 a barrel, a price at which energy companies can continue to make large profits and hire plenty more workers. So now is the right time to invest while house values remain relatively low, said Sano Stante, president of the Calgary Real Estate Board."With interest rates still low and prices having been adjusted, affordability is high so it matches what you would pay monthly for a rental in Calgary," he told CRE Online. But this trend also means investors must make their investments long term, since most residents will continue to choose home ownership over renting as long as interest rates stay low.
  • Don R. Campbell | 28 Jul 2011, 03:34 PM Agree 0
    What we will witness is a resurgance in demand in 18 - 24 months. This will be as a result of the job growth and population growth trends we have witnessed in the last 3 months.

    Speculators and in fact many rookie investors are shying away from the market (due to the focus on housing stats, and their experience of 2007 - 2009). This is keeping a cap on value increases (which is good for the overall market) while at the same time providing opportunities to those who understand that it takes 18 - 24 months for markets to move after job growth begins.

    Here is some additional research into the Calgary (and Alberta) market for those interested in digging even deeper before investing:

    Report Titled: The Future of Alberta Real Estate 2011 - 2015
    http://bit.ly/gOD1GI

    Hope you find it helpful
  • Don R. Campbell | 28 Jul 2011, 04:34 PM Agree 0
    What we will witness is a resurgance in demand in 18 - 24 months. This will be as a result of the job growth and population growth trends we have witnessed in the last 3 months.

    Speculators and in fact many rookie investors are shying away from the market (due to the focus on housing stats, and their experience of 2007 - 2009). This is keeping a cap on value increases (which is good for the overall market) while at the same time providing opportunities to those who understand that it takes 18 - 24 months for markets to move after job growth begins.

    Here is some additional research into the Calgary (and Alberta) market for those interested in digging even deeper before investing:

    Report Titled: The Future of Alberta Real Estate 2011 - 2015
    http://bit.ly/gOD1GI

    Hope you find it helpful
Post a reply