Photo by Mark Rutter
According to the forecast released by Canadian Real Estate Association (CREA), Alberta’s MLS sales will grow the most in the country next year.
National sales were expected to decrease by 1.6% in 2011, but after stronger sales activity in British Columbia, CREA has changed the forecast to indicate a decline of 1.3%. In 2012, sales activity will grow by 2.6% to 452,500 units, and the average price will be $355,800, following the price of $352,500 in 2011 (4.0% growth). The largest MLS sales over the last decade were recorded in 2007 (more than 500,000 units), the lowest in 2001 (less than 400,000 units).
“While interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity,” said Gregory Klump, CREA’s chief economist. “Continuing job growth will underpin housing demand, keeping the housing market in balance and stabilizing home prices.”
In Alberta, MLS sales changed by -13,6% (to 49,723 units) in 2010. This year, a 6.8% growth to 53,000 units is expected, following Newfoundland and Manitoba’s gains of 7.4% and 7.9%, respectively. The growth trend will continue next year across the country. CREA predicts that Alberta will reach 6.7% growth in sales activity — the highest in the country, with 56,560 units (the third largest sales nationally, following Ontario and Quebec). The average MLS sale price in Alberta will rise by 0.1 per cent this year to $352,500, and in 2012 it will reach $358,100 — a 1.6% growth.
“All in all, the positive investments we are seeing in the energy sector and our economy will begin to translate into improved job prospects and growth for Calgary,” said Sano Stante, president of the Calgary Real Estate Board, in April’s report. “This will help contribute to a stronger demand for housing and a stable real estate market.”