Exploring Calgary's Housing Market: Sales, Prices, and Investment Potential

blog-author
The Dolphy Content Team
Posted November 29, 2023
Blog
5 min read

Calgary, the third-largest city in Canada, boasts a vibrant and diverse housing market, attracting individuals and families from all walks of life. Its strategic location in the heart of Alberta's energy sector, coupled with its growing economy and high quality of life, has made Calgary a popular destination for both residents and investors.

 

Overview of Calgary's Housing Market

Calgary's housing market has experienced significant growth in recent years, driven by strong economic fundamentals, a growing population, and relatively low interest rates. The median sale price for a single-detached home in Calgary reached $635,000 in Q3 2023, representing an 11% increase year-over-year. Townhouses and row units also saw strong price growth, with the median sale price increasing by 19.4% year-over-year to $399,900.

 

Sales in Calgary's Housing Market

In Q3 2023, housing sales in Calgary reached 7,802 units, up from 6,275 units in Q3 2022, indicating a robust and active housing market. Multi-family houses, including semi-detached, row-housing, and apartments, accounted for 55% of total housing sales in Q3 2023, reflecting the growing demand for affordable housing options.

Table 1: Housing Sales in Calgary

 

Average Resale Housing Prices

Average resale housing prices in Calgary have been on an upward trajectory, driven by a combination of factors, including strong demand, limited supply, and rising construction costs. The average resale house price in Calgary was $537,221 in Q3 2023, up 9.3% year-over-year.

 

Table 2: Average Resale Housing Prices in Calgary

 

Recent Sales and Price Trends

Recent sales and price trends in Calgary's housing market indicate continued growth and stability. In the first nine months of 2023, housing sales in Calgary reached 22,474 units, surpassing the total sales volume for the entire year of 2022. Median sale prices have also remained steady, with the median price for single-detached homes hovering around $635,000.

Table 3: Recent Sales and Price Trends in Calgary

 

 

Predictions for the Future

Industry experts are cautiously optimistic about the future of Calgary's housing market, forecasting continued growth but at a slower pace than the past few years. The Calgary Real Estate Board (CREB) expects the median sale price for single-detached homes to rise 5% to $668,000 in 2024, while the median sale price for townhouse and row units is expected to increase 4% to $415,000 in 2024.

 

Investment Potential in Calgary's Housing Market

Calgary's housing market offers enticing opportunities for real estate investors. The city's strong economy, growing population, and diverse housing options create a favorable environment for investment. Investors should consider factors such as location, property type, rental demand, and potential return on investment when making their decisions.

 

Factors to Consider for Real Estate Investment:

➤ Location

1️⃣ Strategic locations: Consider areas close to amenities, transportation hubs, and employment centers. These areas tend to attract renters and appreciate in value over time.

2️⃣ Neighborhood dynamics: Research neighborhoods with a mix of residential, commercial, and retail properties. A diverse mix can support a vibrant community and attract a wider range of tenants.

3️⃣ Future development plans: Be aware of upcoming infrastructure projects, zoning changes, and redevelopment plans in the area. These factors can significantly impact property values and rental demand.

 

➤ Property Type

1️⃣ Single-family homes: Offer higher potential capital gains but require more maintenance and may have limited rental income potential.

2️⃣ Multi-family units: Provide stable rental income and economies of scale, but may have lower appreciation potential compared to single-family homes.

3️⃣ Condominiums: Offer a balance between single-family homes and multi-family units, providing ownership with shared amenities and maintenance responsibilities.

 

➤ Rental Demand

1️⃣ Target demographics: Identify the primary renter demographic for the property, considering factors like age, family size, and income levels.

2️⃣ Vacancy rates: Research historical vacancy rates in the area to assess the potential for unoccupied units and lost rental income.

3️⃣ Rental competition: Evaluate the availability of similar rental properties in the area and their respective rental rates to ensure competitiveness.

 

➤ Return on Investment (ROI)

1️⃣ Property acquisition costs: Consider the upfront costs of purchasing the property, including land value, construction costs, and closing fees.

2️⃣ Renovation expenses: Factor in potential renovation or modernization costs to enhance the property's appeal and rental value.

3️⃣ Rental income: Estimate the potential monthly or annual rental income based on comparable properties in the area.

4️⃣ Property taxes and insurance: Account for ongoing property taxes, insurance premiums, and any homeowner association fees.

5️⃣ Maintenance costs: Factor in regular maintenance expenses, including repairs, landscaping, and common area upkeep.

 

➤ Additional Considerations

1️⃣ Financing options: Explore various financing options, including mortgages, loans, and investment partnerships, to determine the most favorable terms.

2️⃣ Legal and professional advice: Seek guidance from real estate lawyers, property managers, and tax advisors to ensure compliance with regulations and optimize investment decisions.

3️⃣ Market conditions and trends: Stay informed about current market conditions, economic forecasts, and interest rate fluctuations that may impact property values and rental demand.

4️⃣ Long-term perspective: Approach real estate investment with a long-term mindset, considering the property's potential for appreciation over time rather than short-term fluctuations.

 

 

Calgary's real estate market offers a multitude of opportunities for savvy investors seeking to diversify their portfolios and achieve their financial objectives. By carefully considering the factors outlined in this guide, you can make informed decisions that align with your risk tolerance, investment goals, and long-term financial aspirations. With thorough research, strategic planning, and the guidance of experienced professionals, you can embark on a successful real estate investment journey in Calgary.

 

Source:

  1. Calgary Real Estate Board. (2023). Q3 2023 Calgary Real Estate Statistics. Retrieved from https://www.creb.com/
  2. Government of Alberta. (2023). Alberta's Economic Outlook: A Quarterly Update. Retrieved from https://www.alberta.ca/economic-outlook
  3. Statistics Canada. (2023). Table 16-10-0078-01: Population, total by sex and single and multiple-family dwellings (occupied), by census metropolitan area. Retrieved from https://www.statcan.gc.ca/en/start

 

Disclaimer: The content above is a compilation from diverse reliable online sources, including blogs and news articles. The Dolphy content team does not ensure the factual accuracy of the information. The provided information may be outdated, and it should not be considered as advice or a recommendation. It is advisable to consult with a licensed real estate agent or broker for accurate advice and recommendations.

 

Dolphy is a leading pre construction platform for anyone looking to buy New Preconstruction townhomes, condos or Detached homes in Calgary.

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