Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

November 18, 2014 09:30 ET

CMHC's 2014 Calgary Housing Outlook Conference

Defining Alberta through its markets

CALGARY, ALBERTA--(Marketwired - Nov. 18, 2014) - Canada Mortgage and Housing Corporation (CMHC) economists and market analysts shared their key insights and forecasts for Alberta's housing market at the 21st annual CMHC Housing Outlook Conference today. CMHC experts presented to over 400 housing industry experts on economic, demographic and other factors impacting Alberta's major housing markets including Calgary, Edmonton, Red Deer, Lethbridge and Medicine Hat.

In Alberta's new home market, single-detached starts are projected to rise by nearly four per cent to 19,300 in 2014 and then remain relatively stable at 19,200 units in 2015 and 19,000 in 2016. "Strong economic and employment growth are expected to help Alberta's housing market conditions remain robust by historical standards over the next two years," said Lai Sing Louie, CMCH's Regional Economist for the Prairie and Territories Region.

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 12,584 in 2013. Following 2014, 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, CMHC's Senior Market Analyst for Calgary.

After two years of double-digit per cent increases, total housing starts in the Edmonton Census Metropolitan Area (CMA) are moderating in 2014. 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, consecutive years of elevated net migration and job creation continued to support activity in the resale market in 2014. However, these factors are expected to moderate, which will lead to a more gradual increase in sales for 2015 and 2016. In 2015, existing home sales are forecast to increase 2.1 per cent to 34,200 units, before rising 1.8 per cent to 34,800 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.

Contact Information

  • Renee Anne Nat
    Communications and Marketing
    Canada Mortgage and Housing Corporation
    (403) 515-2963
    Cell: (403) 605-5094
    rnat@cmhc-schl.gc.ca