In September, the national association of real estate professionals forecast annual sales growth in the province of 13.7 per cent for 2012, and 1.7 per cent for 2013. While the new figures are down from the previous report, Alberta is still in line to finish the year with the biggest annual increase at 13.1 percent.
Gregory Klump, CREA's chief economist, attributes the change to Flaherty’s mortgage rules.
"Annual sales in 2012 reflect a stronger profile prior to recent mortgage rule changes followed by weaker activity following their implementation," said Klump. "By contrast, forecast sales in 2013 reflect an improvement from levels this summer in the immediate wake of mortgage rule changes. Even so, sales in most provinces next year are expected to remain down from levels posted prior to the most recent changes to mortgage regulations.”
The report, released Monday, said the average price in Alberta is predicted to rise 2.7 per cent to $363,100 this year, and up 2.3 per cent next year to $371,300.
Investors already considering Alberta as a hot spot may want to move quickly, as the report is just one of many that have sung the potential cash-flow praises of the province in the past year. REIN named the province’s capital of Calgary as the top investment city in Canada for 2013 to 2016
“This ranking came as a result of extensive research into the underlying economic fundamentals driving Calgary’s economy as well as the current housing market’s response to these fundamentals,” said Melanie Reuter, director of research for REIN. “The high average-weekly-earnings in the city mean more disposable income in this PST-free province, which is creating a country leading consumer confidence level. This is creating further stimulation of the economy through consumer spending, which in turn brings increased employers, people, and demand for housing.”