A Realtor’s 2013 Calgary Real Estate Market Forecast

A Realtor’s 2013 Calgary Real Estate Market Forecast

Source: dorward.ca

At the end of each year, clients and friends are often eager to know my opinion about the state of the Calgary real estate scene, or, on occasions, even the whole of Canada. I often receive questions like: “Is next year a good year to buy a home?” Another popular question people tend to ask me is: “Will my property’s value appreciate next year?”

I can’t say that my take on the real estate industry is definitive, but I did notice a few trends which I will use as basis for some of my projections in this blog.

Zeroing in on Calgary

Based on economic indicators and real estate figures this year, I can see Calgary’s residential real estate market growing even bigger in 2013, thanks in no small part to the solid economy and strong consumer confidence.

Industry insiders will tell you that 2012 had the highest level of sales activity in the last five years. That’s a good sign and indicates a stable economy. They expect to see this sales activity increase even more in 2013.

What does this mean for buyers and sellers and homeowners? Here are a few things that I see happening in the Calgary real estate industry in 2013:

  • Stable property values – Homeowners can rest easy knowing that the value of their investment will appreciate or at least remain stable as employment growth, rising incomes, and low mortgage rates will help sustain demand for housing. In addition, net migration is expected to increase to 20,000 people largely due to the oil and gas sector which is a key industry and is a major factor in generating growth and prosperity. MLS sales are seen to increase by 15.7 percent or 26,000 transactions because of net migration. Moreover, sales prices in the Calgary region are projected to rise by 2 percent or $411,000 and by another 2.7 percent 422,000. 
  • Good time to buy a home – In recent years, more Calgary residents have been buying property, due to the low interest rates.  With low interest rates expected to continue next year, it’s a good time as any to consider buying a new home.
  • Good time to sell – A recent report on the Calgary real estate market showed that single-family homes were most sought after in 2012. More than 60% of sales of residential properties were single-family homes that cost below $450,000. So if you have a single-family home and would like to move to a bigger one, you have a good chance of selling it in 2013, especially if it’s under the $450,000 price point.
  • Strong activity seen in certain Calgary neighborhoods –Killarney, Hillhurst, Marda Loop, Mount Royal, and the Foothills exhibited strong activity resulting in the values of properties in these areas to increase.       One of the reasons that in these areas easily moved is because of their strategic location and proximity downtown.  If you have a few properties in these neighborhoods, next year seems like a good time to sell it, especially with rising demand.
  • Office real estate increases in value– Calgary’s office real estate market has also strengthened this year, compared with 2011. One indication of this is the premium rates that office spaces in certain Calgary areas demand.

The 8th Avenue S. W. Strip, particularly, has been listed as the second most expensive street in Canada, next to Toronto’s Bay Street. With its proximity to retail streets, easy access to transportation, and available parking spaces, it’s no wonder that this particular street in Calgary demands an average of $55.33 per square foot, at $76.50 square foot being the top rent.

As you can see, Calgary’s real estate market is strengthening and continues to grow. From the looks of it, moreover, this trend will continue in 2013. Homeowners, buyers, and sellers in Calgary can be confident that real estate will remain a good investment.

 

Know someone who is looking to make a decision in real estate? If you know any friends, family, or co-workers who are looking to buy, sell, or invest in real estate within the next six months, would you forward this email to them or reply with their contact information? I’ll send them important information about the Calgary, AB surrounding area real estate market and politely ask for their business. I greatly appreciate your valued referrals; it’s the only way I build my business. You can reach me at this number: 403-589-0004


Bryon Howard is a top-producing real estate agent with Re-Max House of Real Estate in Calgary, Alberta. He is in love with his high school sweetheart, an enthusiastic Dad & is crazy about endurance sports. To learn more about Bryon and his real estate tips, head on over to his
website.

Tags: , , ,


Bryon Howard, RE/MAX House of Real Estate
20, 2439 54 Ave SW, Calgary, Alberta, T3E 1M4
Tel: 403-287-3880 (Re/Max) or 403-475-7368 (office) Fax: 403-287-3876 or 403-276-8049 (office)
The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board
MLS® MLS REALTOR® Realtor
Trademarks used under license from CREA