Put on your shades, Calgary, because the real estate spotlight is about to hit, and it’s going to be bright!
Or at least according to a new report by Altus Group, which suggests that Toronto’s housing market may have peaked in 2011, but Calgary’s is just getting started.
“Looking ahead our expectation is that GTA new condominium apartment sales peaked in 2011, and more moderate sales levels will emerge over the next few years,” says Altus. “In Calgary, there is a potential for further improvement in sales during this cycle.”
Although new condo sales in Calgary saw a dramatic downturn in recent years, the market turned around in 2011, and sales of new condos climbed from 1,100 in 2010 to 2,500 in 2011. Quite the turnaround!
Altus pins Calgary’s market weakness on an exit of investors, but notes they’re flocking back due to improved economic conditions and lower rental vacancies.
So what’s the deal with Toronto, then? We were wondering, too.
Altus is concerned about whether rental levels can stay up to par for investors, although they note that off-shore buyers aren’t as concerned about this. But with more than 79,000 condos under construction in Toronto at the end of 2011, demand for rental units would have to double the average annual growth. No small feat for the big city.
We’re sure Calgarians are super excited about this report, though! What do you think?