The Calgary housing market continues to be hot and according to the CMHC total housing starts are expected to increase 16 per cent in 2014 before moderating in 2015.

The spring forecast released by the Canada Mortgage and Housing Corporation on Thursday shows an increase of 14,600 units in total housing starts in Calgary in 2014 and 13,500 for the year after.

Richard Cho, CMHC's Senior Market Analyst for Calgary says the increase is due to migration and a thriving local economy.

"Supported by elevated net migration, continued job creation, rising incomes, and low mortgage rates, total housing starts are forecast to increase 16 per cent this year to 14,600 units, the highest level since 2006," said Cho, "While gains are expected for both single-detached and multi-family starts, the increase will be most pronounced in the multi-family sector," he added.

Overall, housing starts in the Prairie region are projected to total 51,000 units in 2014 and 50,000 in 2015.

Calgary Single-detached starts:

  • Expected to increase three per cent to 6,600 in 2014 and will diminish slightly in 2015 to 6,400 units.
  • Slowdown in 2015 can be attributed to an increase in active resale listings, moderation in employment growth, and lower net migration.

Calgary Multi-family starts : (includes semi-detached units, rows, and apartments)

  • Predicted to increase 29 per cent to 8,000 units this year, which is the strongest since 1981.
  • Experts say a rise in construction in 2014 will likely moderate multi-family starts to 7,100 units in 2015.

Calgary Resale transactions:

  • MLS(R) residential sales in 2014 are forecast to rise four per cent from the previous year, totaling 31,300 units.
  • MLS(R) residential sales are expected to reach 32,100 units in 2015, representing an increase of less than three per cent.
  • The MLS(R) residential price is forecast to rise five per cent in 2014 to an average of $459,000.
  • Low active listings and strong demand will continue to push prices up in 2014
  • In 2015, higher active listings will offer buyers more selection, alleviating some of the upward price pressure experienced in previous years. The average price in 2015 is therefore anticipated to increase three per cent to $472,000.

The CMHC says resale market conditions in Alberta are perfect for those looking to sell, especially in Calgary.

The average resale price in Alberta is forecast to rise 3.9 per cent to $396,000 in 2014 and increase to $406,100 in 2015.

For more information, visit the CMHC website.