Alberta Housing Markets to Recover in 2010

CALGARY, Nov. 26 /CNW/ - Alberta's housing markets are the topic of discussion at Canada Mortgage and Housing Corporation's (CMHC) 16th annual Calgary Housing Outlook Conference today at the BMO Centre, Stampede Park. Over 400 housing industry representatives will be on-hand to hear CMHC experts present on economic, demographic, and other factors impacting Alberta's major housing markets in 2010; namely Calgary, Edmonton, Red Deer, Lethbridge, and Medicine Hat.

"Favourable conditions, including low mortgage rates, have allowed potential homebuyers in Alberta to re-enter the market," noted Lai Sing Louie, CMHC's Regional Economist for the Prairie Region. The second half of 2009 has witnessed production gains from the pace during the first half of the year. CMHC expects this momentum to continue in 2010 with a gain in single-detached construction. "Gains in multi-family construction will likely be held back until the apartment condominium market becomes more balanced," noted Louie. Resale markets in Alberta moved towards balanced conditions during the second quarter of 2009 as improved affordability led to increased demand. "In 2010, look for sales to rise with improved economic conditions and relatively low mortgage rates," Louie added.

"Recent improvements in the resale and new home markets are expected to continue into 2010," said Richard Cho, CMHC's Senior Market Analyst for Calgary. "In 2010, MLS(R) sales are forecast to increase by 10 per cent, while total housing starts will rise by 21 per cent year-over-year," he added. Richard Goatcher, CMHC's Senior Market Analyst for Edmonton noted similar expectations for the Edmonton market: "A sustained improvement in single-detached starts combined with a moderate rebound in multiples will lift total starts in the Edmonton CMA by 29 per cent in 2010."

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

SOURCE CANADA MORTGAGE AND HOUSING CORPORATION (CMHC), PRAIRIES REGION

For further information: For further information: visit www.cmhc.ca or call 1-800-668-2642. Media inquiries: Stephanie Barkley, CMP Marketing Consultant, CMHC, (403) 515-3007, (403) 585-2117 - Cell