A new report has been released by the Calgary Real Estate Board and it forecasts a slight cooling down period for the second half of this year. So far in 2014, expectations have been exceeded and it's expected that things will cool down a bit during the last two quarters of the year.
The Calgary Real Estate Board issued this report as its mid-year update. Real estate sales in Calgary had gone up by 13,926 units or 13.6% by the end of June this year compared to the first half of 2013. Prices also went up by 11.2%.
The report forecasts an 8% price growth overall for a Calgary typical home this year. It is also predicting a 5.5% increase in sales overall when compared to the sales figures recorded for 2013.
According to the chief economist at the Calgary Real Estate Board, Ann-Marie Lurie, employment gains and migration have continued to rise due to energy sector growth. During the first half of the year there was an unexpected price growth. It was earlier forecasted that the real estate market in the city would see balanced conditions sooner.
During the first half of 2014, however, there was strong sales growth due to the record migration into the city that took place last year. As the listings continue to increase, they were also being absorbed. There wasn't a chance for balanced conditions to present themselves at that time. Last year, 45,168 people migrated into the Calgary area.
As well, rental markets in Calgary have remained tight, which has supported the market for resale homes. Condominiums have become a hot commodity due to the tight market for apartment rentals, affordable prices for condos and low interest rates.