Increasing consumer confidence in the second half of the year will boost the city's resale housing market pushing MLS sales and average prices higher for the year, says the Calgary Real Estate Board.
At its annual forecast breakfast on Wednesday, CREB predicted single-family home sales would jump 12.2 per cent in 2012 to 14,800 transactions while the average sale price would increase by 2.1 per cent to $476,000.
It also forecasts year-over-year sales growth of 5.9 per cent for condominiums to 5,700 units with the average price increasing by 1.7 per cent to $292,000.
And in the towns outside Calgary market, CREB foresees a 3.6 per cent hike in sales to 3,900 transactions and a 0.2 per cent rise in the average sale price to $355,000.
"As the market moves into balanced territory, there will be more opportunities for both buyers and sellers in this market," said incoming CREB president Bob Jablonski, who delivered the forecast. He added that 2012 "will provide consumers with stable price growth in a low interest rate environment, encouraging both the first-time buyers and the move-up buyers to be more active in the marketplace."
Last year at this time, CREB forecast annual sales for single-family homes to hit 14,500 units and increase by 19.9 per cent in 2011 from the previous year. Condos were forecast for 6,000 sales, up 15.8 per cent. The forecast for the single-family average sale price was $480,000, up 4.1 per cent, and $295,900 for condos, up 1.8 per cent.
But what actually transpired in 2011 was a completely different picture.
There were 13,186 single-family home sales, increasing by 9.06 per cent, and the average sale price was $466,402, up 1.14 per cent. Condo sales were 5,382, up 3.98 per cent, and the average price was $287,172, down 0.94 per cent.
"While the uncertainty in the global markets is not boosting consumer confidence, strong economic fundamentals point to improvements occurring throughout 2012," said CREB's 2012 economic outlook and regional housing market forecast.
The report said the expected increase in sales activity in the single-family market reflects strong employment and migration gains in the city.
Those gains will also boost demand in the condo market as will lower supply in the single-family market.
Read more: http://www.calgaryherald.com/business/Calgary+sales+prices+rise+2012+CREB/6014033/story.html#ixzz1jwPJRmkI