EDMONTON, ALBERTA--(Marketwired - Nov. 25, 2014) - Key insights and forecasts for Alberta's housing markets will be shared by Canada Mortgage and Housing Corporation economists and market analysts at today's 21st annual Housing Outlook Conference in Edmonton. CMHC experts will present to hundreds of housing industry experts on economic, demographic and other factors impacting Alberta's major housing markets including Edmonton, Calgary, Grande Prairie and Wood Buffalo.
Strong economic and employment growth are expected to help Alberta's housing markets remain robust by historical standards over the next two years. "In 2014, single-detached housing starts across Alberta are projected to rise by nearly 4 per cent to 19,300 units and then remain relatively stable at 19,200 units in 2015 and 19,000 in 2016," said Lai Sing Louie, CMHC's Regional Economist for the Prairie and Territories Region.
Total housing starts in the Edmonton Census Metropolitan Area are projected to reach 13,300 units in 2014, 13,000 in 2015, and 12,300 in 2016. Although demand for new homes is being supported by rising employment, elevated migration, and low mortgage rates, the elevated number of units under construction, particularly on the multi-family side, has dampened housing starts in 2014. "This trend will continue in both 2015 and 2016 as builders scale back production to ensure that inventory levels remain manageable," said Christina Butchart, CMHC's Senior Market Analyst for Edmonton.
In Calgary, total housing starts in the Calgary Census Metropolitan Area (CMA) are on pace to reach a record high of 17,200 units in 2014, up 37 per cent from 2013. Moving forward, total housing starts are forecast to decrease to 14,400 units in 2015 and 12,800 in 2016. "While remaining positive, a moderation in employment growth combined with slower in-migration flows and an anticipated uptick in mortgage rates will contribute to fewer housing starts over the next two years," said Felicia Mutheardy, Senior Market Analyst for Calgary.
In Edmonton, prices have moved up in the resale market in response to the growing demand and relatively low active listings. For 2014, the average resale price is projected to be $360,000, a 4.4 per increase over 2013. In 2015 and 2016, price growth will slow as a result of slower sales growth and an increase in the number of new listings. The average price is expected to be $371,000 in 2015 and $380,000 in 2016.
CMHC's annual Calgary Housing Outlook Conference helps housing market participants understand trends in the market place, identify new opportunities, and make sound business decisions. With more than 65 years of experience, consumers and the housing industry trusts CMHC to deliver reliable, impartial and up-to-date housing market information.
For more information, visit www.cmhc.ca or call 1-800-668-2642.