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Current Real Estate Condition in Calgary, Alberta

March 14th, 2011

Calagary is considered a populous city in Canada. Before, there was a very high demand in the city and people were actually competing in buying real estate properties in the area. However, just like any other areas in the world, Calagary was not excused from a real estate crisis resulting to low sales in properties. It was in 2008 when the Calgary housing demand expericienced setbacks because pf the eroded affordabilty. The city, however, immediately recovered from this crisis.

Home sales in Calagary said to be higher as of September 2010. The number of single family home sales in September 2010 grew by as much as 10 percent—pegged at 958 sales compared to the statistics in August 2010 which was only 867. Meanwhile, the condominium sales for the month of September was pegged at 366 which was apparently higher on the figures recorded in August 2010 which was only 364.

While the demand for houses in the area has showed recovery, the impact on prices would mainly depend on the supply available in the market. The manifested return of demand in the last half of year 2009 has helped in absorbing the oversupply of resale and new homes in the city. The oversupply actually started in 2007 when there a rapid appreciation of new home buyers have caused the delay of their previous homes’ sale.

Condominiums

As for the supply of condominiums, there seems to be an oversupply of units that continued until the end of last year. And the completion of unsold units may continue in the coming months. The oversupply of unsold and unoccupied condo may persist since investor units are immediately listed for sale. However, once the excess inventory works through the marketplace, the low level of new starts may drive prices up expecially for the lower priced end in the real estate market that cannot be supplied by the single family market.

It is interesting to note that low mortgage prices and earlier price reductions have helped in improving the affordability of home ownership among residents of the city. Recently, the average home prices become closer to the average incomes of the residents. There is an apparent narrowing gap between the cost of renting and home ownership in the city, so to speak.

Smaller Communities and Affordable Options

For some residents, smaller communities in the city have provided them affordable options. The average rates in these communities have become very attractive for property hunters who wish to find an alternative to condo living while filling the gap between the condo prices and single family prices in the city.

Aside from the rates, the traffic and commute dilemma in the city of Calgary has made smaller towns more interesting for some home buyers. The job creation efforts among different smaller communities have also made some see those properties worth investing. Right now, however, the prices of properties in the city are slowly diminishing leaving some property hunters confused on where they should invest on. Basically, it depends on the preference of the home buyers—especially on the environment and actual price of properties.

The changes and trends on the real estate industry in Calgary Alberta have given birth to more options and alternatives to home owners. Those who want to invest on real estate properties in Calgary Alberta must think carefully before shelling out their money. They should also seek advice from experts who fully understand the real estate market in the city. Otherwise, they might just end up putting their money at risk. While real estate investment is a risk itself, there should be enough precautionary measures prior the actual deal.

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Realty Express, Inc. is an experienced provider of housing solutions to home buyers based in Alberta in Canada. As family-owned business, Realty Express, Inc. aims to help people who have bad credits or low down payments who cannot qualify the bank requirements for homeonwership. Learn more about Realty Express, Inc. at www.realtyexpressinc.ca.