Calgary Real Estate Blog

Despite the attention-grabbing headline – “Calgary housing market ‘seriously unaffordable’ – the Calgary Herald’s story from a couple days ago on the latest Demographia International Housing Affordability Survey (DIHAS) isn’t dire news. For nine years running, this survey has measured something called the median multiple across more than 300 cities around the world, and ranks them for affordability. The median multiple is calculated by dividing median house prices in the area by residents’ median before-tax income, and this year Calgary’s median multiple was 4.3, which the organization calls ‘seriously unaffordable’.

Interestingly, the article goes on to cite an RBC Economics Research study showing the Calgary market hit its most affordable levels in years in Q3 2012, the same quarter the DIHAS looked at.

So what’s going on here? If Calgary’s market is so unaffordable, why are sales already up more than ten percent, year-over-year (and why am I so rarely at home watching TV with my wife in the evenings)? Calgary’s luxury market had a record year in 2012, with 544 homes selling for more than $1 million; that beats 2007’s record high by nearly 100 sales, and would skew the median multiple at least a bit. So, perhaps there’s a flaw in the methods used to compile the DIHAS, and perhaps ‘the Alberta Advantage’ makes us a fairly unique case. Taxes in the province are extremely low (some would say too low), and that means the difference between pre-tax and post-tax income for Calgarians is not the same as in, say, Vancouver. Combine that with continued bargain basement interest rates, and we’ve still got a pretty attractive environment in which families can find a place to make their own. Are houses here more expensive here than they used to be? Sure they are. To deem them ‘seriously unaffordable’, given all the angles and not just median income, though, seems like a stretch.

The Calgary Real Estate Board (CREB) released its annual forecast for 2013 today, predicting a market that continues to grow but at a slower pace than 2012’s levels. Taking into account employment trends and constraints on the oil sector, CREB suggests we can expect sales in Calgary to grow 2.2 percent this year, with house prices going up nearly three percent.

In their 2012 forecast, CREB predicted a 12 percent sales increase, with prices going up two percent; we ended up with a nearly 19 percent sales jump and a 2.3 percent rise in prices.

2 Storey Detached Home

3 bedroom, 2.5 bathroom, 2270 square feet, pie lot

UPGRADES! Practically brand-new Cardel Beaufort with many, many extras (sellers say $60,000 worth). 9 foot ceilings and 8 foot doors on the main along with giant 6-foot high windows (all with low-e glazing) add to the airy appeal. All window blinds are included. The breakfast nook has been extended along with the deluxe kitchen, which boasts a 9 foot island, extra-tall hand-glazed antique artisan cabinets with soft-close doors and drawers, and stainless steel upgraded appliances along with a walk-through butler’s pantry. Upgraded tile flooring in high use areas, along with hardwood in the flex room (listed here as a dining area). Upstairs the master ensuite has two sinks, an oversized shower and separate jetted tub. All bathrooms have high-end fixtures and soft-close drawers. The spacious bonus room is wired for a 7.1 home theater sound system including speakers in the vaulted ceiling. Upper floor laundry. All this on a large pie-lot with a west rear yard with low-maintenance landscaping. Perfect!

Check out my webpage to see the floorplan and virtual tour!

Splashed across the cover of this week’s Maclean’s magazine is the rather sensational and alarmist headline, “Inside the Great Real Estate Crash of 2013,” highlighting a piece on what may or may not be a Canada-wide bubble in the housing market. The gist is that sales are down across every major city in the country – everywhere, that is, except Calgary, where properties are moving at a healthy pace. This little tidbit isn’t mentioned in the article proper – doesn’t fit into the overarching narrative – but is noted as part of a chart indicating national trends, where our fine city receives the only green ‘up arrow’ in a sea of red downers.

While condo buyers in Vancouver and Toronto are rightfully concerned that a sudden glut of properties combined with a potential economic downturn could lead to rough waters ahead, there is little indication that Calgarians face the same risks.

Apartment Style Low Rise Condominium

Superb value here. Why rent? Seriously, with 20% down your mortgage payments would be just $667 per month (at 3.09%). This could also make an excellent investment opportunity. This foundation-level apartment is not on the Elbow Drive side, but on the quiet back side with north and west exposures. Bright spacious interior with big windows that have recently had security window film installed ($1,500 value). The kitchen has been updated too. The condo board is active, and has recently freshened the exterior with new windows and siding, and is in the midst of renovating the interior with new doors, carpet, and paint. Just a short 10 minute walk to the train station, and only 20 minutes to downtown during rush hour (train or car). Near all major amenities, including groceries and Chinook mall.

Visit my webpage for more photos and full listing details!

Well, here we go; the first post for the new website. I know how to sell houses. I know how to find the right house for a buyer. I know how to take great pictures. I even know how to get three stars on almost every level of “Cut the Rope”.

What I don’t know how to do is blog. I’ll figure it out. Stay tuned…

Ryan