Calgary Real Estate Forecast Brings Promising News

Report: 2010 forecast bright for local housing market

Posted By Scott Mitchell — Senior Reporter

Posted 5 hours ago

Scott Mitchell

Senior Reporter

More good news is on the horizon for the region's real estate market, the Calgary Real Estate Board said last week in its 2010 forecast report.

According to the report, single-family homes will show "modest price increases", while condominium price growth will "continue to lag."

The number of single-family homes sold in 2009 in the City of Calgary was 14,440. That number is expected to jump to approximately 17,000 in 2010, an increase of 17.7 per cent.

Condo sales are also slated to increase by 10.6 per cent, according to the report.

"MLS sales are seasonal, so we anticipate seeing higher year-over-year monthly sales in the beginning of 2010, mainly as a result of low levels of sales experienced in the first quarter of 2009," said Diane Scott, 2010 CREB president. "New housing starts are also expected to be relatively high in comparison to a very weak first quarter of 2009."

The region was in the midst of a recession this time last year that saw housing numbers plummet across the province.

The CREB also predicts that the average sale price for a single-family home will increase approximately six per cent in 2010. A modest increase of 4.3 per cent is expected in the condo market.

"Single family resale prices will again outpace condos in 2010, as equity gains from pre-2006 will enable move up buyers to afford more," Scott said. "Consequently, the gap between single family homes and condominium prices will continue to widen in the short term."

However, low interest rates and price reductions mean buyers can afford more, Scott added.