A 75 Percent Increase is Great for Calgary Real Estate
As we settle into 2017, we are seeing significant improvements to the pace of sales, overall market conditions, and most importantly, consumer confidence. The energy market is the biggest driver of stability as oil prices have now increased by 75% year-over-year to the mid $50 range. This price range offers job security and many positions to be restored. While it is still not pre-2015 conditions, consumers are opening their wallets and starting to make the home purchases they have been putting off.
Calgary is a tale of two markets. Overall, 30-day sales volumes are up almost 30% from a year ago and we are sitting solidly in a balanced market with 3.24 months of inventory (balanced is 2.5mths–4.0mths). The busiest side of the market is in single family detached homes, which are up 32% in last 30 days of sales compared to this time last year. With only 2.34 months of inventory, we are in sellers’ market conditions and some buyers are facing multiple offers in lower prices ranges.
The condo market is still facing a surplus of inventory but is moving in the right direction with a 30%+ increase in sales. At 4.96 months of inventory, buyers still have the advantage but this is trending towards a balanced market with each passing day. A wild card affecting price growth on the condo side will be the number of new buildings expected to be completed, which could increase inventories in the next 12 months.
Overall, the conditions are right for price growth this year. The Calgary Real Estate Board is forecasting 2% increases across the market. For sellers, we expect a great year when priced with the market (overpricing will not work). For buyers, you have lots of great options on the condo side of the market but you may find yourself facing more competition for listings when looking at the single family detached segment.
If the snow melts quickly, your home may be at risk of flooding, even if you haven’t flooded before. Here are a few tips to prevent water damage or flooding.
Reduce Your Risk of a Snowmelt Flood
- Remove snow from around your foundation. Pay particular attention to the areas around window wells.
- Most lots drain along the outside edges. Remove snow from these areas.
- Keep the snow in your yard. Shovelling onto streets or lanes could block drains.
- Help keep catch basins clear. Where possible, safely clear snow, ice and debris from the catch basins in your area.
- Clear snow and ice from around the bottom of your downspouts and extend the downspouts at least two metres so that water drains away from your foundation.
- Check your roof and eavestroughs for excess snow. Consider hiring a professional to clear snow from your roof. A roof rake may help to clear the snow and debris from the edge of your roof.
- Consider using sandbags to block water from entering low lying areas beside your foundation.
- If water is getting close to your foundation, use an appropriate pump to drain it to the gutter or back lane. Please use all equipment properly and follow safety guidelines.
March Preferred Client Update
Blog by Kim Twohey | March 3rd, 2017