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Highlights:
Many of the global economic risks that weighed on the economy throughout 2012 remain, creating uncertainty and impeding economic growth into 2013.
In 2013, resource rich provinces will lead the country in growth, but at a slower pace. Energy investment growth will likely ease due to concerns regarding market access and pipeline capacity constraints, contributing to slower employment growth in 2013.
Sales growth in the single family housing market will ease in 2013 due to slower growth in employment, weaker migration levels, and lower level of listings in the market. Meanwhile, condominium sales growth will outpace single family growth as consumers seek affordable housing options.
Housing prices will continue to recover in 2013, with single family levels expected to finally exceed levels recorded more than five years ago. The risks in the market are numerous.
The global economic situation and oil supply challenges pose the main downside risks, however, if listings continue to decline and demand levels increase more than anticipated, housing prices will increase at a greater rate than expected.
Summary:
UNCERTAINTY AND RISK WEIGH ON GLOBAL MARKETS
Global economic growth estimates were weaker than expected in 2012. Financial challenges in the Euro area are driving recessionary activity there, according to the International Monetary Fund1. This, combined with lacklustre economic performance in the United States, dampened the economies in emerging markets. In fact, many of the risks that weighed on the global economy throughout 2012 remain, creating uncertainty and impeding economic growth into 2013. However, while the economy remains fragile, policymakers have options that could help support global finances. If the Euro zone can survive its fiscal problems and the U.S. can avoid the political drama in dealing with spending cuts, taxes and the debt ceiling, the global economy should grow, albeit slowly.
Click on the link to view the full 2013 economic outlook & calgary regional housing market forecast report