Calgary
The home sales in Calgary can be forecast with the price of oil reaching $71 which is seeming to increase continuously in the future. Due to covid, the economy has not fully revived with immigration still on hold. The number of people increased in the province is 27,000 in the last year. This is very low as compared to the normal migrants which is 73,000. It is expected that in the next year the immigration, economy and home sales price will get better. According to CREB the housing market of Calgary is in a more balanced condition now.
As compared to 2020, the construction of homes in the city is strongly up in 2021. Almost 2723 homes start in July in the province. There is an increase of 42.6% in the construction of homes which suggests that the prices could be higher. The sales of homes have been very strong in the city, double as compared to 2020.
The energy prices are maintaining Alberta tax revenues which really helps the province recover from a, particularly awful period while the pandemic has posed problems for the workplace and retail reopening. The inventory levels are getting higher as compared to the last year. In August 332 condos got to sell. The number of condos in the inventory is 1786. The average price of condo apartments is $253,500.
The rose in sales of detached homes is 31% year over year. The active listing of homes is down by 14.25%. this is going to force buyers to bid higher if they want to win a house. According to CREB the stats are going to be consistent in September with August. The average price of the house is $538,700, which was $487,100 in August 2020. The oil demand will become higher with the fall season and this increase in energy demand will create support increase in the prices of homes. The above forecast is based upon mid $40 and it is already reached $58. As the production gets started, the revenue in the oil sector will get better.
There are several things that caught the attention of future buyers to buy homes in Calgary. These include low mortgage rates, lower-priced homes, more entrepreneurial spirit, and zero income tax. It is also likely that the prices of oil may increase much more than the forecast.
There is strong demand for large format distribution spaces. The value of warehouse spaces or properties with 100,000 squares feet increases substantially. The same market values are predicted for 2022. This highlights the market stability. If we come towards the industrial warehouses that are smaller in the area than 20,000 squares feet, a decrease in the value is observed as compared to last year.
Depending upon the type of property and increased sales transactions of retail property in 2020 and 2021, it is expected that it will also increase in 2022. It also depends upon the location of the property.
According to Canada Mortgage and Housing Corporation, as the economy emerged from the effects of COVID-19 the housing market of Calgary is prepared for a modest recovery.
