September 26, 2020

Calgary Helping Alberta Housing Stats Remain High in Comparison to Other Cities

Calgary, Alberta (PRWEB) August 15, 2012
A recent price survey by The Bank of Nova Scotia suggests that the housing prices are likely to go down for a 10% correction. Since the new mortgage policy becomes effective in July, major markets including Vancouver and Toronto have shown signs of cooling down. However, interesting news from Alberta, where the housing starts were surprisingly high this July.
Higher housing stats are largely a product of the overall economic growth in Alberta. According to the Conference Board of Canada, Alberta has a growth rate of 3.8 % this year. This is the highest for all provinces including Toronto. “The effects of the growing economy are reflected on the housing market as well. While it will still take some time to get over the fiscal deficit, housing stats are expected to remain high for 2013 as well.”
Canada Mortgage and Housing Corp’s report states that the number of new units built in Calgary alone this July was 40% higher than that of July 2011. The same report adds that housing starts were the highest in Edmonton at 1, 098 starts. This figure is significantly higher than that of July 2011.
After a complete analysis of the stats, two major reasons behind the significant difference between Alberta and the rest of the housing market in Canada. According to Canada Mortgage and Housing Corporation, there is a significant increase in multi-family units. As compared to the July 2012 figures, there is a huge 82% rise in the number of units that broke ground.
While multi-family units such as apartments are considered affordable housing options preferred by a majority of residents in Alberta, another major contribution comes from the luxury housing market in Calgary. A report from an International Realty Canada states that a total of 301 homes were sold for over 1 million during the first two quarters. This figure is higher than the total over $1 million homes sold in 2011.
The Biannual Housing reports from Real Estate Boards of Vancouver, Montreal and Toronto have also shown upward trend sales of homes over $1. However, housing price and sales survey conducted by Royal LePage suggest that detached bungalows in Calgary have experienced the highest year over year price increase of 5%.
This can be considered a positive effect of confidence building in the Alberta economy. The economy is improving and employment rate in Alberta is also among the highest in the region. It would be safe to predict that housing starts and sales in Alberta will now remain high for 2013 to 2015 at least.

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