What is Calgary Real Estate Market Like?
Calgary, a bustling city in the province of Alberta, Canada, is known for its booming oil and gas industry, and its robust real estate market. Whether you’re a first-time homebuyer or a seasoned investor, understanding Calgary’s real estate market is essential to making informed decisions. In this article, we’ll explore the current state of Calgary’s real estate market and provide insights into what you can expect when buying or selling property in the city.
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The State of the Market
Overall, Calgary’s real estate market has been experiencing a steady recovery since the economic downturn of 2014-2016. The market took a hit due to the drop in oil prices, which had a significant impact on the city’s economy. However, with the gradual recovery of oil prices and an influx of people moving to the city, the real estate market has been steadily improving.
According to the Calgary Real Estate Board (CREB), as of December 2021, the city’s real estate market is in a balanced state. This means that there is a roughly equal number of buyers and sellers in the market, which has resulted in stable prices and moderate sales activity. In other words, the market is not currently favoring either buyers or sellers, making it a relatively stable environment for both.
The average price of a home in Calgary is around $480,000, which is lower than the average in other major Canadian cities such as Vancouver and Toronto. However, prices can vary widely depending on the neighborhood, property type, and other factors. In general, the most expensive neighborhoods in Calgary are in the southwest, such as Mount Royal and Elbow Park, while the more affordable areas are in the northeast and southeast.
One notable trend in the Calgary real estate market is the increase in demand for single-family homes, which has led to a shortage of inventory in some areas. This has resulted in a slight increase in prices for single-family homes, while prices for apartments and condos have remained relatively stable.
Calgary’s rental market has also been impacted by the pandemic, with many renters moving to the suburbs or seeking more affordable housing options. According to the Canada Mortgage and Housing Corporation (CMHC), the vacancy rate in Calgary was 5.8% as of October 2021, which is higher than the national average. However, there are still opportunities for investors looking to enter the rental market, particularly in neighborhoods with high demand and limited inventory.
Tips for Buyers
Define Your Budget:
Before you start your search for a home, it’s important to define your budget. Determine what you can afford by considering your income, debts, and expenses. This will help you narrow down your search and avoid disappointment when you find a home that’s out of your price range.
Do Your Research:
Research the neighborhoods you’re interested in, and consider factors such as proximity to schools, amenities, and transportation. This will help you determine which areas are the best fit for your lifestyle and budget.
Work with a Real Estate Agent:
A professional real estate agent who is knowledgeable about the local market can help you find the right property and negotiate the best price. They can also provide valuable insights into the current market conditions and advise you on the home–buying process.
In a balanced market like Calgary’s, it’s important to be patient and not rush into making an offer. Take the time to evaluate different properties and neighborhoods before making a decision.
Get Pre-Approved for a Mortgage:
Getting pre-approved for a mortgage will give you an idea of how much you can afford to spend on a home, and it will also make you a more attractive buyer to sellers.
Tips for Sellers
Price Your Property Correctly:
Pricing your property correctly is crucial to attracting the right buyers. Work with a real estate agent to determine the fair market value of your home based on current market conditions, and avoid listing your property at a price that’s too high.
Enhance Curb Appeal:
First impressions are important, so make sure your property looks its best from the outside. This can be achieved by cleaning up the landscaping, painting the front door, and making any necessary repairs.
Effective marketing is key to attracting potential buyers. This includes listing your property on multiple platforms, using high-quality photos and videos, and highlighting the unique features of your home.
In conclusion, Calgary’s real estate market is currently in a balanced state, with stable prices and moderate sales activity. The city’s recovery from the economic downturn of 2014-2016 has led to an influx of people and an increase in demand for single-family homes. However, there is still a good opportunity for investors looking to enter the rental market. Whether you’re buying or selling property in Calgary, it’s essential to work with an experienced real estate agent who can provide valuable insights into the local market and help you make informed decisions.