The Future of Calgary Real Estate in 2017
The Canadian real estate sector seems to be all over the place these days. But it's the exact same roller coaster that's left many feeling uncertain about their futures as homeowners.
While some areas have seen their property values soar, others have seen a dip.
Currently, the average price in Calgary is a market value of $495,000 CAD. This number includes Detached, Attached, and Condominiums. Although, the market has seen some decline in the last couple of years.
The good news is that all things seem to be pointing toward the market stabilizing.
Calgary Real Estate: Going forward, not backward
“The transition in the housing market appears to be underway,” says Ann-Marie Lurie, the CREB Chief Economist.
“However, it is important to note that [the change in the Calgary real estate market] is primarily being driven by improvements in the detached market and stability in the labor market,” Lurie continued.
Calgary real estate is also booming with new residential areas designed for family living. These new dwellings are believed to have incredibly high resale values in years to come.
But that's not to say Calgary real estate is out of the woods just yet.
As crude oil prices fall and migration to other Canadian cities continue to rise, many are wondering how long it will be stable for.
“If local economic conditions do not improve in terms of employment, then Calgary risks a second consecutive year of out-migration, which could place further downward pressure on housing activity, including a rise in distressed sales,” wrote the Calgary Real Estate Board in 2016.
The same trends are still relevant in 2017.
However, the workforce also has been showing signs of stabilization since the 2008 crash. And a more confident workforce is more likely to invest in long-term housing.
Upward and onward!
Some still have uncertain futures
It's still much the case that many Calgary neighbourhoods are still feeling the effects of the 2008 housing crash.
Some neighbourhoods in the city seemed to be struggling, as CREB reports. Single-home housing units have taken a resale drop in some instances.
Unfortunately, the marketing forecast is a bit grey for these areas. Some neighbourhoods will still recover eventually.
Buying in the North
It's this new-found confidence in the workplace that is pushing many first-time homebuyers to purchase Calgary real estate. Neighbourhoods in the North and west of the Deerfoot are showing good promise with excellent accessibility to downtown and the airport.
Rental Apartments are becoming less popular
Recent surveys of Calgary residents show a decline in renting interests. Calgary market analysis has seen a 4% drop in renting opportunities around the city.
Essentially, more people are buying single-family homes and condos. And this push is helping fuel the Calgary real estate comeback.
Also, this downward trend in renting is believed to continue for years to come. The drop in rented apartment properties will help stabilize the real estate market, as well.
New schools on the horizon
Calgary is currently experiencing a huge bump in education.
The $500 million CAD in public school funding given by the government laid the foundation for building three new Calgary schools.
The Calgary Board of Education has given the green light for three new elementary schools within the city's limits. The new Cranston Elementary School, Calgary Evergreen Elementary School, and Coventry Hills Elementary School will not only foster more students but need educational staff as well.
Many educational workers are needed to adequately staff all three new elementary schools.
If you're in the business of the future of tomorrow, now may be a great time to think about a long-term investment in a piece of Calgary real estate.
Big development dreams
The stabilization of the Calgary Real estate market has spurred developers to let their imaginations run wild. No place is this more evident than in the northern sprawl of Calgary.
Towns like Airdrie will soon be home to a small town revolution. Developers are scoping out these areas to build efficient, cost-effective housing units. Most brand-new houses will likely cost less than in Calgary.
Also, these predominately agriculture towns will see a rise in urban development. More large-scale corporations will be moving in and creating a stronger workforce present in areas like Airdrie and Balzac.
For first time homeowners, these newly developed housing units in the north are strong investments. And they will prove to hold their value over time, too.
Townhomes and condos are picking up popularity
Unlike other major Canadian cities, condos in Calgary have been gaining popularity in recent years. These small real estate purchases are more suited for the single-occupant household.
Prices for townhomes and condos in Toronto have now surpassed the selling value of a single-detached home in Calgary. These spikes in downtown living have helped spark migration from these cities.
And many of those same occupants are flocking to Calgary for the affordable downtown lifestyle.
Right now represents a fantastic time to invest in a piece of Calgary real estate. You could see the benefits of a high market forecast for years to come.
Final thoughts: the future is promising
Sure, 2008 definitely created a lot of real estate instability in Calgary. And the housing market here took a bigger hit than most.
But, for first-time homeowners, Calgary represents a promising future in property ownership. And, if you're in the educational workforce, now's especially a good time to think about making a long-term housing investment in Calgary.
Take a deep breath, look around, and be smart about where you're putting your money.
Have any more questions? Get in contact with us!