Calgary Real Estate Blog

I talk a lot about the detached home market in Calgary, and how remarkably well its doing, but our city’s condo market is also on fire right now. The Herald reported recently that new condo sales are near the records set in 2005 – when prices were significantly lower – as people look to live closer to the action of our downtown core.

Condos have a lot of great benefits for the right homebuyer. First, you get the financial advantages of owning a home with a lot of the mitigated responsibilities (for things like shoveling snow, replacing the roof, and so on) that go along with renting. Second, singles may feel a greater sense of security living in a highrise condo building, surrounded by helpful neighbours and with a monitored entrance, rather than in a big suburban home. Third, a major element of the condo lifestyle is living with less stuff: you just plain don’t have the room to store a pile of collectables, and so you learn to live with less.

It’s not for everyone, of course, and it does have risks: a poorly managed condo board can leave maintenance undone, for example, leading to major repairs paid for out of residents’ pockets. For those who do their research and know what they’re getting into, though, condos hold a lot of value and appeal. If you think you might like getting into the condo market, give me a call or visit my web page to view those I currently have listed.

It should come as no surprise to readers of this space that 2013 is on track to set a sales record, with well over $9 billion in sales being transacted; to date, the city has seen nearly $7 billion in real estate changing hands. Resale prices are up, and people are still buying, thanks to some very solid employment numbers (we’re one of the country’s only bright points on that front), relative affordability (especially in the condo market), forced moves due to the flood, and just the general appeal of our city to people from all over. Calgary’s a place where you can get a good job and raise a family without too much fear of the bottom falling out of your lifestyle.

So, of course, there’s gotta be the end times coming, and naysayers point to a slowdown in the purchase of land for new properties to show that they’re almost here. Call me optimistic, but I just don’t buy that as proof that we’re in a bubble about to burst. Developers have bought up huge swaths of land recently to keep up with the demand in our hot seller’s market, but they still recognize that the country’s fragile economy will likely lead to some ebbs and flows. So the houses get built, they sell, then new rounds of purchasing can begin. While suggestions that land purchases have dropped more than 50 percent in Calgary year-over-year may sound alarming, the other way to look at that is there was a lot of land bought up last year that’s becoming homes sold this year.

Real estate markets cycle, they don’t generally boom and bust without outside factors manipulating them (as was the case in the US some years ago). So, as I seem to say often around here, take the alarmist news with a healthy dose of skepticism.

An interesting article from the Globe and Mail, published a couple weeks ago, suggests women – and particularly single women in their twenties – are shopping for condos more and more. Even in married couples, it’s the ladies’ sense of taste that usually wins over when it comes to choosing a property (which means foosball in the living room’s probably not going to cut it). Condo developers are responding by putting a greater focus on security, lighting, and in-suite storage.

This shouldn’t really be a surprise to anyone: there’s a reason ‘man caves’ are usually in the basement or the garage, out of sight. We (men) often just can’t differentiate between a feature or styling choice that’s awesome on its own and one that actually works in a space. We know it, and we embrace it.

What would you look for in an apartment-style condo, and what would be a deal breaker? Is the Globe’s article on the money? Respond in the comments below.