The Calgary real estate market has experienced an influx of homebuyers from other provinces keen on acquiring investment properties. One significant driving factor behind this trend is Calgary’s relatively affordable real estate prices compared to Canada’s other major urban centers. Compared to other provinces, Calgary has successfully steered clear of a housing bubble. This makes homes in Calgary more accessible than massive hubs like Toronto and Vancouver.
Condos for sale in Calgary are now the hottest property commodity. According to reports published by the Calgary Real Estate Board (CREB) in July 2023, condos have outperformed other residential property types, showing a whopping 50 per cent sales increase year-over-year. They’ve also experienced the second-largest benchmark price jump of 12 per cent. Despite the significant benchmark price rise, condos for sale in Calgary have made up about 25 per cent of all home sales this year. And given their current momentum, this percentage is poised to climb.
Is it Worth Buying a Condo in Calgary?
In recent years, Canada’s housing market has been shaped by shifts in monetary policies. Amid the pandemic, the market witnessed an unprecedented boom thanks to an infusion of capital into the system. However, the second half of 2022 marked a turning point: the Bank of Canada began tightening by hiking interest rates.
For many, condos for sale in Calgary are a fantastic choice. They can be a stepping stone from renting to owning faster than if you were buying a traditional house. Plus, they offer a hassle-free lifestyle with less maintenance. But remember that it still comes down to the specific condo you’re eyeing.
Like other properties, condos generally grow in value with the broader real estate market.
Although not universal, condos generally appreciate value at a pace that’s somewhat slower than detached houses. Choose one that is located in urban centers or near essential amenities. Being close to public transport, shopping hubs, entertainment centres, or even employment hubs can significantly boost a condo’s appeal and, subsequently, its resale value.
What is the Average Cost of Condos for Sale in Calgary?
The Calgary Housing Market Report shows that the average price of condos for sale in Calgary real estate rose 12.1 per cent from the previous year to $309,000. In contrast, condos in the Toronto region average just over
$720,000, and those in Metro Vancouver come in around $769,000, as reported by their respective local real estate boards.
The attraction to Calgary’s real estate market isn’t solely based on the affordability of condominiums. Alberta offers other financial incentives that are pretty appealing to property investors. Unlike Ontario or British Columbia, Alberta does not impose land transfer taxes. In those places, taxes can range between one and three percent of the final sale price for properties above $55,000, representing a substantial additional cost for buyers.
Alberta’s housing regulations are also perceived as favourable for landlords and investors. There are no restrictions on rental price increments, providing landlords with greater flexibility in adjusting to market conditions.
Are Condo Prices Rising in Calgary?
Since the start of the year, home values in the Calgary Metropolitan Region have been on an upward trajectory. While the market for detached homes shows mixed trends, the condo apartment sector is sizzling. As work-from-home becomes more common, we anticipate developers introducing larger condos with two or three bedrooms, aligning with the changing buyer preferences. The demand is predicted to surge as many hard-working Canadians working longer hours lean towards low-maintenance living. The convenience of having everything nearby and the energetic atmosphere make these high-density neighbourhoods incredibly appealing. Living in these areas offers practical advantages and creates a sense of community.
Will Condo Prices Go Down in Calgary?
The Calgary real estate started the year a bit slow, much like other big cities. But prices are not expected to drop because supply remains tight. In fact, housing inventories in Calgary have fallen to near-record lows, while new home builds are delayed by challenging labour and material issues. As more people move to Calgary to find jobs, there is intense competition since there aren’t enough properties for sale.
This lack of supply means buyers don’t have many options. On the other hand, those selling homes see this as a chance to ask for higher prices. Many sellers are hoping for top dollar for their properties. This is quite a deviation from the nationwide trend. In fact, the Calgary market has been hitting new price records due to a demand that heavily outweighs supply. Even the steepest interest rates over the past two decades haven’t done much to cool down the market.
Are you looking for condos for sale in Calgary? Our experienced RE/MAX agents can guide you through the nuances of condo associations, financial assessments, and the potential pros and cons of your condo investment.