18 Apr Springtime Hope for Calgary Real Estate
Following a harsh winter, parts of Canada’s economy are beginning to thaw and bloom. March saw increased hiring and decreased unemployment in the nation as a whole, according to Statistics Canada’s Labour Force Survey for March 2016.
Alberta’s employment rate increased, and its unemployment rate dipped to 7.1 percent in March from 7.9 percent in February. Although the level is still high compared to the 5.6 percent rate of 2015, it’s a breath of fresh air to see the numbers move in the right direction.
In Calgary, the city is recovering from hits in the oil market and an unemployment rate of 8.1 percent. However, recent increases in oil prices could be lifting Calgary into brighter days this spring.
In particular, the housing market in Calgary could be heating up.
Did Housing Rates hit Rock Bottom?
The week of April 1-7 marked the first time real estate sales in Calgary exceeded 2015 levels. The shift could be accounted to the fact that the average prices of Calgary homes in March decreased 1 percent from last year. Sellers are also providing incentives for those still deciding if the market has hit rock bottom.
Nonetheless, there are still plenty of empty homes on the market in Calgary at affordable prices. Canadian buyers seeking investment or vacation properties may not want to wait much longer. Foreigners could also benefit from the low Canadian dollar.
Development Projects Opening Space
Calgary’s office-rental space has a vacancy rate of 17 percent, and rent has dropped by 30 percent. Mixed-use redevelopment projects in Calgary are expanding that space even farther. The Eau Claire Market and Northland Mall projects will boast new, quality space for office and retail as well as rental units.
Calgary’s residential-inventory rate was relatively low in 2014, but development has reversed that trend.
Millennials are Coming In
The latest reports indicate that millenials are leaving behind the high-priced housing markets in places like Vancouver for more affordable options in Calgary. Vancouver alone has one of the top three least-affordable housing markets in the world. However, even residents willing to pay Vancouver rates have a difficult time finding openings, as Vancouver has a home-vacancy rate of just .8 percent.
On the other hand, abundant 2-bedroom condos in Calgary can cost an average of $1,330.
Moreover, young people are also coming to Calgary with drive and ambition. Such qualities can benefit the city, which houses Canada’s highest-per capita density of entrepreneurs.
With wide office space and urban village developments, Calgary is offering millennials a prime spot to grow their careers while living in comfortably.