Factors Causing the Growth of Real Estate in Calgary
It is interesting to note how an average property within Calgary city limits is not staying listed on the market for as many days as previous years. These include apartments, townhouses, attached, and single-family homes. There exists a demand for quality properties, and the trend month after month reflects a percentage increase in the number of units sold.
The real estate sector here is quite a buyer’s market. With a large chunk of houses for sale in Calgary, there are plenty of scopes for you to buy one within your budget. Those looking only to rent a space will not be disappointed either. Although there has been a 23% increase in residential sales overall compared to last year this time, the challenging macro-economic scenario warrants a calculated approach.
For prospective home sellers to maximize the potential of selling their properties, a two-fold method is recommended:
1. Strategic pricing
2. Comprehensive digital marketing including virtual reality tours
Let us dwell upon certain vital factors that have led to a substantial growth of home sales in Calgary:
Financial Market Turmoil
Whether it was senior citizens or those with expanding families who needed to sell their primary homes, they chose to reinvest the money earned in real estate. The uncertain financial markets made them focus more on Canada's real estate and further their interest in this sector.
Investor confidence, especially among the affluent, shifted more in favor of top-tier Canadian companies dabbling in real estate. They found this route highly profitable as it diversified their asset portfolios, protected them against stock market volatility and inflation.
Drop-In Mortgage Lending Rates
In March 2020 alone, Bank of Canada substantially dropped its mortgage rates, giving home buyers a boost in their purchasing power. This dramatic shift has projected houses for sale in Calgary as a favorable asset with improving potential returns.
The announcement of these positive changes in mortgage rates gave real estate consumer confidence the much-needed push to take the plunge. It also encouraged home buyers who earlier felt sidelined to make their dreams a reality. This factor has particularly stimulated luxury and conventional real estate activity within Calgary, Canada.
The Surge in Pent-Up Demand
There was a phase in the recent past wherein a shortage of property listings, and a simultaneous rise in consumer demand led to multiple offers up for grabs. New listings gradually started making an appearance with the predictable boost in property sales.
The success rate was unbelievable, as listed properties witnessed a much higher absorption rate. All in all, the initial disruption in the real estate market slowly dwindled and, in time, got fully resolved.
Domestic Economic Resilience
The Canadian economy has always enjoyed a global reputation of being very stable and relatively resilient to external factors. At the onset of 2020, labor markets were impressively holding their ground, and the economy was operating close to capacity.
Consequently, there was an incredible surge in real estate sales activity, especially over the initial two months. This trend significantly stabilized the market performances of both top-tier and conventional real estate in Calgary.
As real estate prices are influenced by the volume of active buyers and the number of properties on sale, maintaining the balance is critical.
Tom Tilman is the editor and manager at GalleryNine5. Tom has been a part of the home decor world for the past 12 years, designing, planning and consulting both companies and individuals among their decor and design journeys. Tom has been using his vast knowledge and skills into his writings and creatives in order to share and grow the decor community.