The headlines are out with some big numbers. The numbers are strong, but they aren't a reflection of the actual day to the day of the market right now in any specific area. Some communities, especially those hardest hit by the floods, have posted very little data in the last few weeks. There are transactions still pending for homes that were affected and many folks are rushing to buy property before values increase or because they needed a new home due to damage. Others are concerned about risk and pursuing their choices carefully. It is recognized that until things stabilize and some important questions are answered such as resolution to provincial plans, insurance claims, flood maps and mitigation strategies, that some homes will see a reduced value just due to uncertainty even if there was no specific damage. The urgency or concern really depends on location. The numbers do show, however, a marked increase in sales and pricing and a consistent move to a seller's market in a general sense.
Some recent events to consider:
- The census just released shows the number of residents grew by 29,327 between April 2012 and April 2013, bringing the total number of Calgarians to 1,149,552. With more growth on the horizon, we are going to be a growing city with demands on housing and infrastructure.
- The rental market is very, very tight.
- Many areas of Calgary displaced for weeks/months are in high value areas. Some homeowners will purchase new homes while they resolve property at their current homes.
- Many renters were displaced by the floods. Some are moving to home ownership rather than compete in the rental market.
- Some communities just outside of the affected areas but still in sought after inner city areas may see a larger increase in pricing adjustments as people choose proximity but with lower risk.
July and August are traditionally slower months for real estate transaction in Calgary. With the Stampede, sun and mountains providing great distractions, many put their plans on hold to take advantage of the summer sunshine. This year, we have seen more rain than usual so we'll see if that translates into less camping and more house shopping.
The one item to note for all homeowners is that insurance coverage and refinancing are changing. You need to expect to answer more questions to gain insurance coverage on some properties and conditions on sale may be required for some addresses.
If you are looking to buy and sell your home, I would be happy to meet with you in person to discuss your needs. Call it an interview or a conversation, but this is the time to have a qualified Realtor at your side.
City of Calgary residential sales totaled 2,268 units in July, a 17 per cent increase over the previous year and up more than six per cent so far this year.
A total of 693 condominium apartments and townhouses sold in the month, a combined increase of 26 per cent over the previous year, and a year-to-date growth of 16 per cent.
The growing demand for condominiums has also led to a tightening of supply. July active listings in the apartment and townhouse segment declined to 768 and 407 units respectively.