Thursday, January 3, 2013
January 3, 2013 - Calgary Real Estate Market Update
The real estate numbers for 2012 will be widely distributed as they show a marked increase in activity vs 2011 with a sales volume increase of 15%. Benchmark numbers indicate strong pricing adjustments vs 2012 and continue to point towards a stabilization and growth in our market. The next question is then what is in store for 2013?
The Calgary market is dependent on the energy sector and the resulting affect on need for workers, housing, commercial space and then retail, coffee shops, restaurants, etc. While other parts of Canada are showing slowing numbers we continue to see a growth in our economy and also very low rental vacancy rates. These trends point to increased demand on housing which most often results in an increase in pricing. However, it all depends on how strong the ongoing growth pressure is.Opinions vary strongly as to the growth potential for 2013. While some are calling for strong increases relative to 2012, many others are projecting more conservative growth of 2-3% while others are calling for the sky to fall. It's interesting negotiations when these folks are on opposite ends of the table.
Please don't read this to mean that you can now go out and ask 5-10% more for your home than last year. The averages and numbers are influenced by a higher sales volume in the luxury market which pushes up the average. As well, some areas of the city saw higher price increases last year while others saw declines. An average is just that and is not a reflection of the percentage point expected increase for any one property. The market remains balanced which means that buyers have choice. They understand value.
Condominium and townhouse sales are also gaining momentum, however, buyers are carefully reviewing condo documents so stay connected and ensure your building is being well managed. With many new projects underway in the city, there is choice so take your time and happy scouting.
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