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Calgary Leads Housing Price Growth With Strong Migrations And A Young Population
Canada's Alberta province has the highest rate of migrations in the country and Calgary is one of the cities in the region with the highest influx of immigrants. Clearly, this means that there is a greater demand for housing. This is reflected in the rising prices of housing in Calgary, which beats that of other major cities in the country. There are some other factors that add to this of course. This includes Calgary's demographics and the city's position as an international business hub.
The rise in prices is great news for you if you're planning on selling your Calgary home, though not so great if you're moving there without a job in your bag.
The Housing Price Growth Figures for Calgary
The most recent MLS Home Price Index released by the Canadian Real Estate Association on Monday, 17 June, revealed that prices of homes in Calgary were up by 6.87 percent as compared to last year. This placed Calgary's year-over-year housing price growth at the top of all major Canadian cities and the national index rise of 2.3 percent.
MLS sales in Calgary also increased by 8.9 percent (or 3,247 sales) from last year. While the figures show a positive housing boom in the city, MLS sales across the rest of the country actually went down by 2.6 percent from May of last year.
Now, take a look at the prices. Average MLS sales price grew from May of last year by 2.6 percent to a value of $440,675. National sales prices on the other hand rose by 3.7 percent to average $388,910.
All of Alberta experienced a positive housing growth. MLS sales rose by 3.2 percent from last year to 7,209 transactions. Sales prices also leaped by 2.9 percent to an average of $385,702.
The Factors Contributing to Housing Price Growth
As I mentioned earlier, migration to Alberta and Calgary is a significant influence on the housing prices of the region. The quality of life and the desirability of living in the region is obviously what is drawing immigrants. As a result there are plenty of first-time buyers who are setting of a chain of housing sales.
Calgary real estate is also booming because of its young population. The average upwardly mobile Calgarian is in his or her mid-to-late-30s. So there are plenty of people currently putting up their houses for sale in Calgary and upgrading to better homes.
A third factor that clearly makes Calgary a great place to live in and raises the prices of homes is its worldwide reputation as a business hub. The city also has more global head offices per capita than any other major Canadian city.
If you'd been following the real estate news over the last couple of months, then you would know that there had been some concern about the upward trends across the country coming to a rough end. However, most economists are upbeat about the balance in the housing market. They unanimously agree that the market is experiencing a far more sustainable housing price growth than 2010 and 2011. And this growth is proportionate to what the locals can afford and their levels of income.
Some experts suggest that the upward trends may be somewhat negatively impacted by rising long term interest rates, which will increase mortgage interest rates and make housing less affordable. However others are optimistic about the prospects for average prices and sales the rest of the year.
Here's a look at what you can expect in the near future. According to CREA's forecast for the near future, national sales will fall by 2.5 percent only to rebound and rise by 4.7 percent in 2014. Alberta however will continue to see a rise by 4.2 percent this year and then by 3.5 percent in 2014. Prices are also expected to rise in Alberta by 4.2 percent this year, and 3.4 percent the following year.