WHEN HOUSES FLY ?!?!
If you’re following the news these days, it’s almost impossible to miss the real estate headlines. Recent media articles make it seem like “houses are flying off the shelves” and for astronomical prices!
But you know that old expression, “when pigs fly?” The saying is used to express doubt, sarcasm or even suggest something is impossible. Clearly, there are some houses flying today—so it is possible!
However, the media hype encourages us to take a closer look at WHY we’re investing in Calgary. Here’s some of the latest stats to share and reasons why we still love Calgary:
Fair Landlord-Tenant policies and arbitration.
Real Estate Stats: February 2021
- Best sales volume since 2014!
- Low inventory, about 2 months supply. Days on Market down to 45.
- Benchmark price is up 4% year over year
- Detached homes are clearly the most in-demand (residential market)
Our favourite reason today: Calgary is a very affordable city in Canada, requiring only 36.7% of pre-tax income to cover housing costs. (RBC Canadian Housing Reports—Dec 2020)
Alberta’s GDP is currently predicted to drop 7.1% overall for 2020, then post positive GDP growth of 3.3% in 2021 and 2022, according to ATB Economist predictions. Stay tuned for updates!
Over $153 Billion in Alberta major projects are planned for the near future. $24 Billion is planned so far in the Calgary area alone (Government of AB) JOBS JOBS JOBS JOBS !!!!
According to Rentals.ca, January2021 report, Calgary Two bedroom units have actually seen a rate rise of 3.2% year over year, to an average price of $1470!
Residential vacancy rates in Calgary were 6.6%, Edmonton was 7.2% (according to CMHC 2020 Rental Market report, released January 28, 2021.).
Unemployment in Calgary sits at 10.6%, Edmonton is at 11.6%, and Alberta is at 9.9%, with Canada sitting at 8.2% overall (February 2021).(StatsCan).
No land transfer tax, no sales tax—means a lower cost of doing business for real estate investors in Alberta. No PST, means lower cost of living for residents and employees—very attractive for in-migration.
Record low interest rates won’t last forever. (signs and concerns of inflation are on the horizon)
CMHC recently downgraded the (real estate) market vulnerability rating in Calgary to “Low Risk.” (CMHC Housing Market Assessment Q1 2020—most recent).
The youngest median population age (37.2 years) among the provinces as of Oct 2020, published by Statista.com. 45% of Calgarians are working age (between 25-54) (StatsCan)
The highest weekly and annual earnings (median, after taxes) in Canada are still in Alberta—even with a slower economy! (Alberta Economic Dashboard, Dec 2020)
One hour’s drive to Banff and the Rocky Mountains – need we say more?
In a nutshell: GDP is already rising, unemployment is slowly decreasing, and jobs are coming in with infrastructure and diversification (Infosys is a good example: https://www.cbc.ca/news/canada/calgary/jobs-calgary-tech-firm-infosys-expand-1.5935186). Rental rates are slowly rising, vacancy is decreasing and the housing market is showing some of its healthiest statistics since 2014! Location, affordability and low business and personal taxes are also very attractive qualities. Also, we cannot say enough about fair landlord-tenant policies in Alberta.
Many people love the hot, Hot, HOT markets. Calgary might not be a sexy market today—but all the foundation is set. We are excited to be investing as the recovery begins and grows!
