Business & Investment

Calgary continues to report high market performance despite the traditionally late winter market

Calgary is currently one of Canada’s major cities’ most affordable real estate, especially attractive given the runaway prices in other major markets. According to recent reports, Calgary housing is actually very undervalued.But according to Local realtor Jesse DavisThe growth potential of the market means that there is still a lot of fun.

According to a new statistical release by the Calgary Real Estate Commission (CREB) in November, the average price of single-family homes in the city was $ 542,600, up more than 10% year-on-year. Half-detached homes averaged $ 429,800 and apartments averaged only $ 251,700, the lowest year-over-year increase. In addition, although winter is traditionally considered a late season for cities, inventories continue to decline, but sales remain strong at “almost the same level as after August,” according to CREB. doing.

Compared to other major cities, Alberta is far superior in terms of affordability, despite continued price increases. In October, Ottawa’s average home price was reported to exceed $ 700,000, while both Toronto and Vancouver’s detached homes averaged well above $ 1.5 million.

Last month, Moody’s Analytics reported that the Canadian real estate market Up to 90% overrated It is above the trend price. The same expensive city above showed a double-digit high overestimation, but Calgary is reported to be actually undervalued by up to 30%, which is one of the highest underestimations in the country. It is a department.

This does not mean that the investor has lost money. House prices continue to rise. Instead, this report may represent significant growth opportunities in the future.

“Calgary has a very cyclical market that has historically followed oil and gas prices,” said top local realtor Jesse Davis, one of the reasons for Calgary’s current underestimation. I explained one.

But Davis says the oil industry is no longer the only player in Calgary.

“Since the recession, Calgary has diversified away from being dependent on one sector, and employment is expanding in the technology, medical, agricultural and other sectors.”

These new sectors have plenty of room to grow in Calgary, have the potential to attract many new entrants to the Calgary market, and bring mutual benefits to both businesses and cities.

“With conservative government policies, Calgary is an attractive place for new or current businesses to relocate, with attractive incentives for both rent and tax incentives.”

Another reason Calgary may be in a good position is described in the Moody’s report. The report states that this forecast “means a slowdown in rising home prices across the country,” as prices are expected to rise sharply and interest rates are expected to rise in other parts of the country. In essence, sharp price increases are not sustainable as the economy returns to gear.

But in areas that didn’t fly that high, like Calgary, Moody’s actually said that these areas were “more affordable, even though their economic fundamentals were weaker, just because they maintained better prices. It will improve. “

This means not only can you find more affordable prices in Calgary, but your investment may be more stable in the face of future changes.

According to Davis, “This will make Calgary really prosperous in a recovering economy and in the future. I think Calgary is likely to grow steadily in the short and long term. But attractive values, resumption of immigration, diversification and opportunities are the keys to the steady growth of the city. ”

Davis says clients are also optimistic and many are eager to join now while interest rates are still low to take full advantage of their opportunities. ]

“Some of my clients have a 90-day mortgage holding period set to expire, so there is an urgent need to trigger. As prices go up, monthly payments can be significantly higher. We are trying to get the most out of our current affordability because of our nature. “

For those looking to buy now, Davis says there are “real opportunities” in multiple real estate segments.

Connect with Jesse Davis [email protected] Also Visit his website For more information and consultation regarding the opportunities available for your particular situation and budget.



Calgary continues to report high market performance despite the traditionally late winter market

https://www.canadianrealestatemagazine.ca/news/calgary-continues-to-report-high-market-performance-in-spite-of-the-traditionally-slow-winter-market-334945.aspx Calgary continues to report high market performance despite the traditionally late winter market

Back to top button