Calgary is the capital of Alberta, one of Canada’s most dynamic provinces. With Calgary’s oil sands and the vast North American supply chain, it is an emerging tech hub with some of the highest per-capita incomes in North America.

The city has all the natural amenities of a world-class city plus an educated and active younger population.

The city of Calgary ranks highly when it comes to purchasing an Alberta Property.

Buyers are attracted to the lower condo costs, low mortgage amount to purchase a property, the ability to move in quickly, and the ease of commuting to Calgary International Airport and other major attractions.

The house prices here are rising fast. To know the reasons, check the points below. 

Facts And Data About Housing Market Prices

Facts And Data About Housing Market Prices

Here are some facts and findings of Housing market prices in Calgary:

  • As of June 2017, the total number of home sales in Calgary was 19,835 – representing a 7.5% year-over-year decrease. Calgary has a growing population of young people, with an average age of 42 years. This trend is expected to continue, as the median family gross household income is $74,854, placing Calgary at 47th in Canada.
  • Calgary was the first city to open a casino, in 1988. In 2001, Calgary became the first city in North America to have a downtown arena. With Canada’s youngest city center (population: 1.4 million), Calgary has the distinction of being the youngest city in Canada, with an age range of 5 to 25 years old. 
  • Calgary has been ranked “the happiest city” in Canada, according to a Gallup Healthways poll. Calgary was also ranked first place in North America in the number of happy minutes a week. Calgaryites reported feeling more positive and happier, less stressed, and engaged at school and at work
  • Calgary is an extremely multicultural city, with residents of over 150 different nationalities and races. The Canadian Mortgage Housing Corporation released findings that show a total of 3.5% of Canadians rent out their properties, which has a huge influence on Calgary’s residential property market.
  • Home sales in Calgary fell again last month, this time to the lowest number since 2016. After a long summer of listings, demand has finally begun to meet supply causing bidding wars in some neighborhoods. Average list-to-sale prices rose 6% last month to the highest level in five years. This trend will continue throughout the remainder of the year as the market heats up and inventory levels remain tight.

Fair Calgary Real Estate Market House prices

Fair Calgary Real Estate Market House prices

Property Price Trends In Calgary housing market: In 2017, the median price of a home sold for $435,000. As of July 2018, the average selling price for a Calgary home was $525,000.

While it seems the Toronto Real Estate Bubble is deflating. We’re seeing price increases in other Alberta cities and no doubt the Edmonton Real Estate market continues to thrive!

The Edmonton Real Estate Board said that September marked the eighth consecutive month of above-average activity, which is 2 years in a row.

With a total of 2,317 homes traded – a 24% increase compared to last year at this time. Home sales were down 20% from last year to only 1.3 per listing.

 The Royal LePage House Price Survey for the fourth quarter of 2016 has been released with all mentions about Housing Market Prices.

The survey compares the top 33 metropolitan markets in Canada, highlighting that “home prices in Calgary have surged higher by 19% over the past year, while those in Vancouver and Toronto are up 17% and 15% respectively over the same period, and Edmonton, with a 9% increase, has seen the growth of 12%.”

There are many ways in which we look at home sales and price performance. One of the more telling metrics is comparing price trends. At this time last year, there were 1,566 Sales in Southern Alberta.

This number is up 26% compared to 2016; meaning that there are now 1,566 homes for sale in the Calgary area in September 2017.

With this said, the price point for a home in the Calgary Real estate market has changed dramatically this year.

Last year, the Calgary Real Estate Board (CREB) predicted price increases of up to 6%.

As of now, in September, the average price per square foot has jumped 15% year over year; compared to July where prices are up by 9.3% from the last 15 months.

This guide to real estate in Calgary gives an overview of the city’s house prices. With information on prices, values, taxes, and more, Homebuyers are well served here.

Related Resource: At Home in Spain. A Guide to Buying Property in Spain

Factors That Affect House Prices In Calgary

Factors That Affect House Prices In Calgary

Since we are already on the topic of house prices in Calgary, it is only natural for us to understand different factors that need to be addressed. This section will effectively discuss some of the most important and major problems that you need to solve in order to estimate the right price of real estate effectively. 

Climate

This might come as a surprise to many, but general climate is one of the most important and essential aspects that decide house prices. It is observed that climate change is slated to be the biggest factor influencing house prices in the next 10 years. Properties with lower carbon footprints would become more in demand. Which in turn would majorly impact the overall pricing. 

Supply & Demand

Supply and demand have been intertwined since the dawn of entrepreneurship. As a result, expect these two factors to play an important role. As per studies, it was noticed that many Canadian and American cities are facing some severe land availability problems. The worst part about this problem is that there is no true fix for this issue. Therefore, expect to see a major hike in housing prices due to supply and demand factors. 

House Pricing

This might sound surprising to many, but house prices have the ability to push housing prices to the north. Since Calgary is one of the most-loved cities in Canada, it is natural that the city is seeing a major population influx. This, in turn, increases the demand and pushes the price higher. 

Rental Industry

Many people prefer renting out a place rather than buying a place. Renting a residence might sound financially unfeasible. In reality, it gives a certain sense of freedom to the resident. However, experts have noticed a severe dearth of affordable rental properties in the last couple of years. This can play a major role in pushing the cost of owning a place to go higher and higher. 

Interest

Getting a new house is one of the most financially taxing decisions that most people will ever undertake. Therefore, it is obvious that many people would like to take out a home loan instead of paying everything upfront. Therefore, home loan interest rate biomes an important factor to consider. In fact, a higher interest rate can push the price considerably higher. Therefore, the first step of buying the right house is to select the right bank. 

Immigration

Every year, thousands of people move from different places to Calgary, Canada. Therefore, it is estimated that by 2030, the overall population of Canada will grow twice in size. This in turn would heavily impact the overall housing prices in the area. 

Shifting Demographics

Calgary has a very dynamic essence when it comes to the economy. In other words, droves of young people make their way to the city in order to experience a faster lifestyle. Therefore, residents notice a major demographic shift in the recent years. This is also another factor that can push the overall price of a property in Calgary.

A Piece Of Advice

Please note Investors has to note that markets, where the population is exploding, aren’t best for rental property investment. Especially, US Housing prices experience these sort of things.

For instance, some of the fastest-growing areas are SC, Myrtle Beach having 2.9% growth, and Lakeland FL with a 1.6% population growth rate.

Stay tuned with us for further updates on similar topics like when will housing prices drop.

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Arnab
Arnab Das is a passionate blogger who loves to write on different niches like technologies, dating, finance, fashion, travel, and much more.

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