If you’re thinking of buying or selling property, the Calgary real estate market has been on the rise for most of 2012. While home sales in the rest of Canada have been trending downwards because of new mortgage rules, Calgary’s has been expanding. In fact, the trend for most of 2012 is one of growth, both in volume and values this year.
Reading the Signs of Growth
One of the best places to check for the strength of a market is from Multiple Listing Service (MLS) sales. MLS sales are a good gauge of how active the housing market is. In the case of Calgary’s Real Estate Market, transactions have risen to 2,054 –up 14.8% from September 2011. Last month’s benchmark prices, the typical sale price for a home, look good too:
- single-family homes are up 8.2% to $432,900
- condo apartments increased by 3.83% to $249,300 and
- condo townhouses grew by 2.2% to $277,700, up
Such data are pointing to the idea that the real estate market of Calgary is getting healthier and has no signs of decline. Coupled with the latest October real estate figures, an even rosier picture can be painted regarding the Calgary real estate market:
- new listings decreased to 5.57 % (or 1,831)—which could mean more people are holding on to their homes, new constructions are keeping apace, or both
- more people are buying homes, with a home staying on the market cut to 45 days
- vendors are gaining the upper hand, with average sale price rising to $433,932 (4.86 % increase) and MLS sales up 21.92% (1,235) from the same period a year ago
The Economy: Driving Calgary’s Real Estate Market Growth
The better-than-normal real estate market can be seen to be linked to a booming economy fuelled by Calgary’s robust oil sands sector. Interestingly, respected economists Craig Alexander and Mario Lefebvre predicted that Calgary’s economy is set to lead Canada for the next three years. Very heartening news indeed!
Another key factor to the growth in Calgary’s real estate market is the decreasing unemployment rate. Compared to the national average which has seen an improvement of one percent, Calgary’s situation has improved by 3.5%. This is very encouraging news as this means more people are finding better work within the city which could only translate to higher household incomes. An attractive employment environment also means more incoming migration from people looking for better job prospects. A growing population in turn will eventually lead to increased demand for housing. Better still, this increasing demand for housing is projected to grow steadily for the next five years. In fact, the BMO Housing Confidence Report says that people are more likely to purchase a home in Calgary with figures estimated at 62% which is much higher than the national average of 46%, the Greater Toronto Area (57%), and that of Vancouver (53%). This means that: (1) consumer confidence in the Calgary real estate market is firming up; (2) housing demand will grow over the next year, and (3) a vendor’s market is gaining traction.
Taking stock of all the data, 2012 has been a great year for Calgary and 2013 is looking to continue that trend.
Know someone who is looking to make a decision in real estate? If you know any friends, family, or co-workers who are looking to buy, sell, or invest in real estate within the next six months, would you forward this email to them or reply with their contact information? I’ll send them important information about the Calgary, AB surrounding area real estate market and politely ask for their business. I greatly appreciate your valued referrals; it’s the only way I build my business. (Free Market Report on value of your home: www.CalgaryMarketSnapShot.com)
Bryon Howard is a top-producing real estate agent with Re-Max House of Real Estate in Calgary, Alberta. He is in love with his high school sweetheart, is an enthusiastic Dad & crazy about endurance sports. To learn more about Bryon and his real estate tips, head on over to his website.