According to the Canada Mortgage and Housing Corporation, Calgary's real estate market is bouncing back after prices plummeted during the recession and many were forced to sell to recoup their losses.
MLS sales are expected to increase by five percent in 2011, after a 16 percent drop last year.
The CMHC says as the economy improves the gap between what buyers are willing to pay and what sellers are demanding is narrowing.
According to the crown corporation, the gains will be modest and gradual.
"Calgary is one of the markets that had tremendous growth in 2005, 6 and 7 and then we're recovering from that. It's gonna take a little time to get back to that, but we do expect prices to start to edge up again next year," said Lai Sing Louie, CMHC Regional Economist.
On the downside, new, single-family, detached home construction will drop 10 percent and multi-family home construction will drop 5 percent this year.
