The Best Mortgage Rates in Calgary

Calgary Key Stats

• Calgary population (2011): 1,096,833
• Dwelling units (2011): 445,848
• Average weekly earnings (2012): $1,066.83
• Average household income (2012): $89,490

Source: Stats Canada, Calgary Economic Development

Calgary Mortgage Rates to Moderate in 2013

Bank of Canada interest rates are not anticipated to rise until later 2012, keeping variable rates at historically low levels in the interim. Posted mortgage rates are expected to increase moderately near the end of the year with the one-year posted rate in the 3.1 to 3.6 per cent rate, and the five-year rate forecasted within 5.0 and 5.4 per cent range.

Rates are expected to rise further still in 2013, with one-year posted rates to be in the 3.5 to 4.1 per cent rate, and the five-year posted mortgage rate to be within the 5.1 to 5.6 per cent range.

Source: CMHC

Calgary 2012 Housing Market Outlook

Calgary's start market is expected to rise by 25 per cent to 11,600 units in 2012, levels seen for the first time since 2008. It's a very strong increase compared to 2011, which saw starts grow less than one percent to 9,292 units. Total housing starts in 2013 will see a slight decline to 11,400 units, down by two per cent.

The largest increase in new construction projects is in the apartment segment, as single detached starts have declined 12 per cent since 2011.

The resale market enjoyed strong conditions in 2011, with Residential MLS® sales in Calgary totalling 22,466 transactions in 2011, a seven per cent increase since 2010. However, as the economy continues to improve, buyer interest may strengthen in new home purchases. MLS average prices also rose to $547,670 in 2011, up 6.5 per cent from $514,466 in 2010. 2012 is anticipated to see prices for single-detached homes to rise to $557,000, and again to $567,000 in 2013. The Calgary housing market continues to be supported through improved job creation and rising incomes, consistently high migration levels and low mortgage rates.

Source: CMHC

CMHC Calgary Housing Market & Mortgage Rate Forecast

According to the latest Calgary civic census conducted in 2009, Calgary's vital stats are:

• Population:1,230,200 (2009)
• Employment showing signs of stabilizing.
• Rising oil prices have promoted economic growth by increase energy sector investments, and creating job growth.
• Net migration to increase 6% in 2010 reaching 17,000 migrants and a further 9% increase in 2011 is forecast.

Source: Stats Canada

Calgary Mortgage Rates Will Slowly increase in 2010

The CMHC best case scenario, expect mortgage rates will continue to slowly increase in 2010 with a one year mortgage rate to be in the 3.6 to 4.8% range and the three and five year mortgage rates to be in the 4.2 to 6.7% range. In 2011, CMHC forecasts that the one year mortgage rate will be in the range of 5.0 to 6.0% whereas, the three and five year mortgage rate will be in the range of 5.6 to 7.2%. However, if the economy recovers at a faster rate than expected, mortgage rates may increase at a more rapid rate.

Calgary 2010 Housing Outlook

The CMHC reported that the housing starts will start to rise in 2010 by 39% to 8,800 units. This increase is a result of a growing economy, low mortgage rates and strong demand and low inventory conditions. In 2011, a forecast of 17% increase with 10,300 units expected.

The New House Pricing Index is expected to rise by 2.7% in 2010 and 3.4% in 2011. The median absorbed price for homes in 2010 is $420,000 an expected 7% decline from 2009.

Multiple starts are expected to rise 49% with 2,300 units in 2010 but still remain historically low. A 35% increase is forecast in 2011 with 3,100 units as the economy improves and inventory costs decrease.

A slight increase in MLS sales from 2009 is forecast, with 25,000 sales in 2010. A further 4% increase to 26,000 units is expected in 2011 as the economy grows, net migration increases, higher wages, and more job opportunities are available.

The average price is expected to increase 4.4% to $403,000 in 2010 after two years of declining. With balanced conditions, a further increase of 3.7% to $418,000 is expected in 2011.

CMHC Calgary housing market & Calgary mortgage rate forecast