According to a report,
the performance of the Calgary
housing market was mixed, with the first part of 2010 seeing some buzz while
the second part was mostly flat. Into 2011, the outlook is difficult to
predict.
CERB (Calgary Real Estate Board) president Diane Scott said
that the good start to 2010 can be attributed to the fact that interest rates
were low. This encouraged Canadians to go for mortgages and home equity loans.
New homebuyers also made the move before the expected changes to mortgage
lending by the CMHC (Canada Mortgage and Housing Corp). The forecasted interest
rate hikes however, did not materialize.
Scott said that following the spring home-buying rush, there
was a lull and no subsequent buying wave. She added that there was no driving
force that propelled the economy forward and as a result the real estate market
also remained flat. She hopes that permanent job opportunities in Calgary this year will
attract a flurry of migration to the city. This migration will be key in
directing the housing market forward, Scott said.
CREB’s YTD numbers indicate that total multiple listing
sales in 2010 (until and including November) for the single family home market
stood at 11,361, a fall of 16.73% from the same period in 2009 while the
average home price saw an increase of 4.67% to $462,425. The condo market saw a
sales decline of 18.81% with the average price rising by 2.36% to $290,153.
Analysts say that what the housing market experienced in
2010 could spill over to 2011 as well, with no clear picture about when the
mortgage interest rate will see a spike.
