The housing market in Calgary is alive and thriving. Calgary’s economy continues to sizzle and grow, and home sales have been continuing to rank in the top echelon of real estate sales throughout the country. You might be interested to know that Calgary has provided the highest return on investment for real estate in the country.
Home buyers in Calgary have been receiving an average annual rate of return averaging 20%, and it even topped out as high as 38.2% in 2006. Try making that kind of return from your other financial investments. It’s not just the housing market which is experiencing a phenomenal return on the investment because commercial real estate also leads the country on its annual return of investment.
Also, another fact about Calgary that is interesting to note is that Calgary now ranks second just behind Toronto as having the next highest concentration of corporate head offices. The oil and gas sector naturally lead the way even though the world’s economy is sluggish at the moment. The current economic lethargy hasn’t really made much of a dint on Alberta’s economy which continues to attract oil and gas specialists, high tech experts, and other highly educated and skilled workers to the city. The spin off effect has also contributed to additional job creation and average wages have continued to rise in its wake.
Even in spite of the recent changes made by the Canadian Government, real estate remains the main investment choice of Calgarians because interest rates are still at their lowest. If you want to find the best rates and save even more money, your best bet is to use a mortgage broker who can find you the best deals.
The demand for Calgary real estate is still high and any home listed on the MLS doesn’t last more than a few weeks before it’s scooped up and sold.
What’s Ahead for the Calgary Housing Market?
A report recently released by the Canada Mortgage and housing Corporation (CMHC) in the spring of this year suggests that housing starts are expected to rise by 25% this year alone with only a slight decrease of 2% expected for 2013. A higher demand for homes has stimulated a number of projects that have been put on hold. Due to the current increase in demand, it is expected that this will also bolster the average price increase in the immediate future.
The growth in prices will allow a greater build up of equity in Calgary homes which will enable existing home owners to trade up to more expensive homes.
Although there is some uncertainty about the existing stability in mortgage rates, forecasters at CMHC believe that mortgage rates will continue to remain relatively low. A minor increase is expected towards the end of 2012 where posted interest rates are expected to rise from their current level to a rate of between 3.1% to 3.6%.
Migration of new workers to Calgary is expected to increase to 17,000 in 2012 which is an increase of 52% over the previous year. Comparable levels of worker migration are expected to be relatively similar for 2013.
All in all, the Calgary housing market looks rosy for the immediate future and Calgary housing trends will continue to outperform most other markets in the country.
Photo by lipstickproject
