As far as price, CMHC predicts an average increase from the $402,851 seen in 2011 to roughly $409,000 for 2012. By the end of 2013 that figure is expected to grow to $420,000.  The market for new housing is also getting an optimistic nod.  In 2011 there were 9,292 housing starts. CMHC expects 10,300 starts in 2012, increasing to 10,700 by 2013.

The force behind all this news is the continual growth of the Calgary economy, particularly in the energy industry and related fields. This is increasing the number of jobs available, which have been on that increase throughout 2011, with that trend expected to continue throughout 2012.

Calgary is expected to see an increase in migration to the area, particularly if job prospects continue to soften throughout the rest of the nation. This not only increases housing demand, but puts money into retailers and other businesses that have set up shop in and around the city.
d, but puts money into retailers and other businesses that have set up shop in and around the city.

This January showed 1,362 sales, actually 1.6 percent more than in January last year. Single family homes were down slightly, 1.4 percent, from 2,980 in the same month in 2011, compared to the 3,073 this year. There were also eight percent fewer listings this January than last. Condos saw sales go up one percent comparing this January to last, coming in at 302 and 305 respectively.

As far as price, single home average prices dropped by some 3.3 percent, coming in at $436,683 this January. Condos dipped 6.9 percent, averaging $268,526. Homes sold outside city limits saw a 5.9 percent price increase, averaging $353,902.

CREB president, Bob Jablonski, notes that slow sales in January are not unusual, and are generally offset by the lower number of listings. He also noted that the dip in pricing had more to do with sales rather than with home values. More homes, particularly condos, are being sold at lower prices, under $300,000. Then again, some condos are selling for $400,000 and in some cases much more.

Only three cities did better, Regina at one percent, Quebec City at 4.7 percent and Ottawa at 6.9 percent. Avison Young forecasts that Calgary will see a 5.2 percent vacancy rate by the end of 2012, which would be lower than Ottawa. Regina will most likely rise to 4.1 percent but still keep its first place ranking.

Vancouver, with some of the most expensive office space in the nation, is expected to see its vacancy rate fall from 7.6 percent to 6.4 percent by the end of the year. Avison Young also took a look at the United States commercial market and believes Canada’s market will remain stronger. Canada’s economy is stable and growing modestly. The United States is recovering much more slowly, seemingly trying to find traction for a really solid recovery.

Canadian businesses are increasingly investing in space south of the border. The exception is the retail trade, with well-known U.S. brands like Target and Marshalls setting up shop in Canada. It seems there is more disposable income north of the border.

This information is courtesy of a report released this past Thursday by CIBC World Markets. Citing the combination of temptingly low interest rates and a relatively weak increase in incomes, this high debt scenario is most severe in Alberta, Ontario and British Columbia. During the boom, confidence in the economy was riding high, since then things have cooled somewhat.

Taking age groups into account, those 45 and older tended to be accumulating debt at a faster rate than younger home owners. In 2007 that age group was responsible for 36 percent of the debt, but by the end of 2011 that figure rose to 43 percent. Part of the problem is old debts being combined with new, compounding the issue. Enticed by the 35 and 40 year mortgages with low interest rates, and the higher real estate prices, those deciding to upgrade their homes increased their debt burden. Time will tell if this scenario is improving, thanks to tougher lending rules set by the Bank of Canada this past year.

But there are a couple of reports that have the nay-sayers giving conflicting opinions. A report by Scotia Economics, known as the Global Real Estate Trends Report notes that Canada’s housing boom is showing signs of a slowdown after 13 steady years of growth. The Bank of America-Merrill Lynch believes a real estate bubble is in the offing and that current real estate prices have been inflated by roughly ten percent.

TD Economics does see a slight increase in sales in the Calgary area for 2012, roughly 0.1 percent, but predicts a 3.3 percent decrease for 2013. They also expect the average real estate price to go up by 0.5 percent in 2012, but then decrease by 1.6 percent in 2013. That translates into average prices of $404,100 and $397,800 respectively.

By the end of 2011, some 22,500 homes are expected to be sold, which is an eight percent increase over the sales for 2010, which came in at 20,801. The increase in price between 2010 and 2011 is considered modest, going from an average of $401,186 to a projected $405,000 by this year’s end. In 2012, that price average is expected to grow by at least three percent to about $417,000. At the same time sales are expected to see a five percent increase, with 23,600 units changing hands.

Lowell Martens, who is a Re/Max agent in the Mountain View section of Calgary, notes that sales this year may have been influenced by the European Union’s economic troubles. But, he notes, if you look at the amount of real estate construction going on in the city, it paints a much rosier picture. The city’s economy is bustling at the moment, spurred by the success of the energy industry within the province.

Developers have had their eye on Mount Pleasant, and have added a good number of additional homes in the last few years, yet the area remains one of the most desirable. Sitting about ten minutes from the downtown core, and roughly 15 from Calgary International Airport, this is a neighborhood close to Confederation Park, a lovely bit of open green space, easy access to the Queen Elizabeth highway, and a quiet lifestyle.

People new to Calgary often find Mount Pleasant one of the most memorable of neighborhoods, not only because of its charm, but of the name. It fits. The neighborhood also provides a decided contrast between the glittery skyscrapers that are springing up in the downtown core; sort of modern skyline meets old-fashioned laid-back rural living.

In was inevitable that Calgary would grow, would change into a new-age city. The bustling energy industry and the influx of businesses would make it a necessity. Yet isn’t it nice that a bit of the old Calgary, that of the backyard gardens brimming with tomatoes, the white picket fences and the dog in every yard still exists?  The past and the now, really do go hand in hand.

During that decade, $23.1 billion in permits for residential dwellings were issued, the third highest in the nation. Calgary was topped only by Toronto, with an impressive $77.3 billion and Vancouver, coming in with $35 billion. Tanya Eklund, a realtor with Re/Max, notes that Calgary has done well because of the strong economy and the wealth of natural resources that drive that economy.

Eklund noted that the population in the greater Calgary area is now over one million. Combine this with a strong GDP and low employment rates and you have a demand for housing, which drives up the price. Most of the decade saw a balanced real estate market.

In 2000, the average price of a home in Edmonton came in at $176,305. By the end of 2010, that same home brought an average of $398,764. Only Regina topped Edmonton’s 126 percent increase, with a 165 percent increase in that city. The average increase throughout Canada was 106 percent for that time period.

Calgary is running rings around the world’s real estate markets. In October, the average price for a residential property, including all types, was $360,000. Though it is down a hair from this past September, the figure is $1,000 higher than in October of last year. The number of unsold homes still on the market is also stable, holding at 11,064, with the ratio slightly favoring the buyer.

In October of this year, a single family home went for an average of $455,400. At the same time the median price worked out to be $395,000, which is two percent higher than October of 2010.  The Calgary Real Estate Board attributes this to the large number of luxury homes that changed hands this October.

As far as condos, sales prices were a bit lower, coming at $282,900 this year, indicating more sales in the under $200,000 category. Sano Sante, who is the CREB president, notes that the market is stable and improving. He foresees no changes in the interest rates in the near future, which will contribute to that improvement.

A single family home in the city averaged $455,399 per unit, which is a 2.4 percent increase in price from October of 2010. It was noted that this figure could be on the high side because of the number of luxury properties that changed hands this October. Recently, the prices have held steady, spurring a new interest in purchasing.

This past October saw 988 single family home sales, more than 11.4 percent higher than the 887 seen the prior October. Condo sales went up 19.9 percent, from 307 to the current month’s 368. Townhouses really saw a sales spurt, increasing by 29.6 percent comparing this October to last. That translates into 298 and 230 sales, respectively.

There is also no fear of a real estate bubble in Calgary, unlike other Canadian cities that have seen skyrocketing house prices and sales. Homes in the region are still about 11 percent less than they were priced in August of 2007, prior to the recession.