Housing market improves for 2018, says CMHC

Dated: January 11 2019

Views: 53

Housing market improves for 2018, says CMHC

A “For Sale” sign sits in front of a home in the Wedgewood neighbourhood in Grande Prairie on Jan. 5, 2017. FILE PHOTO


The housing market in Grande Prairie was strong for 2018 thanks to increased activity in the local oil and gas industry.

From January to November 2018, resales were up 19 per cent for Grande Prairie, according to the Canadian Mortgage and Housing Corporation (CMHC). Meanwhile, resales were down 6.4 per cent for across Alberta.

“In terms of the economy, the natural gas industry has supported growth in the housing markets in Grande Prairie,” said Lai Sing Louie, CMHC regional economist. “It’s really bucking the trend from what we’ve seen in the rest of Alberta.”

The average house price also rose 4.2 per cent for Grande Prairie while decreasing 2.7 per cent for the province through 11 months in 2018.

“Prices are showing that they are firming up and much stronger than even the major centres,” Louie said. “Edmonton, for example, is down 1.4 per cent and Calgary is down about 5 per cent.”

Grande Prairie vacancy rates dropped from 4.9 per cent in 2017 to 3.6 per cent in 2018, not including December for either year. In 2018, the provincial average was 5.5 per cent.

In addition, Louie noted an increase in average local rent by 10.9 per cent for 2018, compared to a decrease of 0.5 per cent in 2017. This is equivalent to a rent increase from $1,012 in 2017 to $1,122 in 2018 for a two-bedroom apartment.

“The rents in Grande Prairie are still a little bit lower than they are in Calgary and Edmonton,” Louie said. “Those two markets — the resale market and the rent market — have shown some firming. On the other hand, construction levels in new home markets came down a little bit.”

Excluding December, 154 new homes were built in Grande Prairie for 2018, compared to 190 for 2017.

Although CMHC no longer forecasts for Grande Prairie, Louie said the stronger housing market for 2018 indicated more activity in terms of people moving and related services.

Blog author image

Steven Axford

Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....

Latest Blog Posts

Big Incentives for Homeowners to Sell Now´╗┐!

4 Big Incentives for Homeowners to Sell Now1.4KSHARES1.1K12913159The housing market keeps sailing along. The only headwind that could take it off course is the lack of inventory for sale. The 

Read More

Housing in Greater Victoria remains in high demand

 "Comparing last year’s April market to 2021 does not provide us any real insight into long term market trends,” said Victoria Real Estate Board President David Langlois. &ldquo

Read More

4 Tips to Maximize the Sale of Your Home Today!

1. Make Buyers Feel at HomeOne of the ways to make this happen is to take time to declutter. Pack away any personal items like pictures, awards, and sentimental belongings. The more neutral and tidy

Read More

OSFI proposes tighter mortgage rules amid 'very strong forces'

Canada’s top banking watchdog is taking another shot at overhauling its stress test on residential mortgages in a move that would make it harder for some borrowers to qualify.The Office of the

Read More