Calgary Real Estate Blog

We all know Alberta’s economy is leading the country growth-wise, but you might be surprised to find out our growth rate is nearly double the national average, and is a fair sight ahead of what was accomplished last year. No wonder, then, that the period from April 2013-2014 reportedly saw Calgary’s population increase more than ever before in the city’s history. Nearly 39,000 people became Calgarians, either through immigration or by being born, which is about 25 percent more than in 2012-2013. Alberta is the Land of Opportunity, with more than four million residents and counting.

That opportunity is certainly being seized by home builders: there were more new homes started between January and April of this year than in all of 2013.

Despite higher land costs and increased home prices, it’s still a seller’s market because demand is outdoing the supply. That may level off slightly in the coming year or so, but there’s not really any reason to think a major economic cool down is on the horizon; people will continue to flock to the home of the Greatest Outdoor Show on Earth.

Interesting article from the Herald recently on the growing number of first-time home buyers. You’d think the record prices would deter first-timers from jumping into this red-hot market, but increasingly low interest rates combined with a healthy amount of confidence have led to the majority of properties changing hands in 2013 going to newbies.

I expect this trend will carry forward through 2014, as mortgages can now be had for less than two percent.

It’s nice to see the ‘housing bubble’ talk die down in the media lately: for close to a decade it’s been all the rage to predict how we’re on the verge of a US-style meltdown thanks to high personal debt loads and unsustainably low interest rates. Just wait till the good times get a little less good, they said, and it’ll be foreclosure sales left and right. Well, that kind of talk might sell magazines and get people to tune in at 6:00, but it’s just not the reality, especially in Calgary.

The steady population growth, solid employment situation, and smart city planning all lead to ours being a very livable city. I mean, in Toronto or Vancouver if you work downtown but live in the ‘burbs, you’re in for a multi-hour commute each day, but here, thanks in large part to a well designed c-train system, few are en-route for more than 45 minutes. Heck, our largest community (Tuscany) buts right up against the city limits, and when the new station opens this fall transit riders will be in the core in about 25 minutes.

So bravo for Calgary residents realizing the great value our city holds and jumping into the housing market. Obviously, making up 55 percent of the sales means first-timers are essential to the healthy and sustainable that we enjoy, and so it’s vital for everyone’s property values that we see real estate in Calgary for what it is, and not through an alarmist, sensationalist filter.