By Mario Toneguzzi, Calgary Herald, June 22, 2012
CALGARY — House price gains are starting to pick up speed in Calgary, according to the Canadian Real Estate Association.
The national realtors’ group reported Friday that Calgary has experienced a 4.84 per cent gain in the past 12 months to May in the MLS Home Price Index — second only to Toronto’s 7.93 per cent year-over-year growth.
“Home price gains in Greater Toronto continue to eclipse those in other markets. Gains are also starting to pick up speed in Calgary after months of stability,” said Gregory Klump, CREA’s Chief Economist. “As always, prospects for home price trends depend on buyers’ willingness to pay and sellers’ expectations and motivations, both of which are tied to economic, labour market, and interest rate prospects.
“With European sovereign debt and banking issues likely to cloud the global economic outlook, Canadian interest rates will remain at or very near current levels. The continuation of low interest rates will continue to support Canadian housing activity and prices for some time to come.”
CREA said May marked the largest year-over-year gain in Calgary in nearly two years. The increase lifted the index for Calgary to its highest level since August 2008.
Read more: http://tinyurl.com/86pped3