ASK SAM

The Calgary Real Estate Market Is A Local Phenomenon

QQ: I heard a news story that home prices are dropping and we are now in a market correction. What is happening?

Like the weather, the real estate market is very localized. Just because the weather report says that today it will rain in Toronto doesn’t mean Calgarians need to pack their umbrellas. Even within Calgary, there are moments when it is sunny in the SE and pouring in the NW. The real estate market is exactly the same. Conditions are different depending on your district, your price point, the type of property you own, and even the street you live on. That is why news stories that are Canada-wide don’t always apply to you. It’s imperative to find out what is happening in your corner of the universe. The real estate market is a local phenomenon.

ALBERTA VS ONTARIO & BRITISH COLUMBIA

The two provinces that have experienced the largest decrease in home prices are British Columbia and Ontario. Many economists predict that they haven’t hit the bottom yet. Since the population is greater in these provinces, data on the Canadian real estate market is skewed towards them. Also, we all know that Canada-wide news stories can be more representative of what is happening in Eastern Canada than here in Alberta. What we have been experiencing locally is a population growth, a strong job market, healthy oil & gas prices, and low inventory levels of houses available for sale. All of these factors has kept Calgary sheltered from the market correction experienced in other areas of the country. Our home prices are still on the rise and currently there are more buyers than sellers.

HOW MUCH IS YOUR HOME WORTH?

When I am asked to price a property, I do a careful analysis before I come up with a number. I consider the amount of inventory on the market, the migration rates into the province, and the unemployment rate as well as sales of comparable properties. Recently, I have been drilling down to comparable sales within the last 60 days. The sales data has changed so much over the last 12 months that often a sale a year ago isn’t current enough to reflect the real estate market trends. All of these factors and your home’s attributes, condition, and property type lead me to the market value of your home. This process is the only way you can determine the price of your home. It is not based on a news story about the entire country.

WILL WE SEE A DROP IN PRICES?

It is possible that prices may decline in Q3 or Q4 here in Calgary. In past recessions, Alberta was not as adversely effected as other areas of the nation. It’s hard to predict, but currently, demand is outweighing supply. And as demand stays strong, prices rise. It might be the right time for you to take full advantage of the current market conditions while they last If you are planning on selling in 2023. CALL

THE MARKET IS CHANGING. DON’T MISS YOUR OPPORTUNITY.