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Renata & Ziggy Trawinski
IQ Real Estate
Buying & Selling, Calgary, Alberta
P: 403-208-2368
F: 403-776-6075
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Friday, December 10, 2010 - Housing Market Outlook for 2011 by RE/MAX

Activity remains soft in Calgary’s real estate market, which continues to be weighed down by concerns over global economic uncertainty. Consumer confidence has also been slow to battle back from
downturn, but tentative signs of improvement have become evident in recent weeks. Despite a slight uptick in demand, and the fact that the market has now settled into a stable pace, it won’t be enough to close the gap in year-over year sales. Overall, the city is on track to finish the year down 22 per cent at 19,200 units, while average price climbs three per cent to $402,000—up from the $391,058 reported in 2009. The city’s median price (Calgary Metro) for single-family homes hovered at $409,000 in October, while the median for condominiums (Calgary Metro) was at $268,000. Buyer’s market conditions and low interest rates will continue to drive demand into 2011, with first time buyers leading the charge. Demand for affordable product remains very strong, particularly in the single-family homes category. An oversupply of condominiums will be good news for entry level purchasers in 2011, a factor that will translate into increased selection and will hold price appreciation in check. In fact, fewer new projects
are getting underway, as builders concentrate on finishing what’s already been started. Savvy investors have been snapping up single-family homes and small multi-family properties. While this activity has been limited, investors are expected to head back into the market in greater numbers next year, as in-migration picks up once again in tandem with the upswing of the oil and gas sector. The upper-end continues to prove very resilient, and that should carry forward. The supply in the overall market is expected to ease into the new year, which could transition Calgary back to balanced territory.
An up-and-coming area expected to see a ramp up in sales in 2011 is Balzac/Airdrie, just 20 minutes north of Calgary. An influx of big box retailers, the opening of the large Wal-mart Distribution
Centre, as well as proximity to the Cross Iron Mills Mall and the Airport has appealed to purchasers. The suburb represents great value—offering more home for lower prices—with properties priced from
the high $200,000s to $350,000 in great demand. Construction and development continue unabated in north-central, with more amenities and services constantly being added. With Calgary also expanding,
the two areas will meet in the near future, which may see Balzac/Airdrie emerge as a hot pocket, particularly given its affordability. The Auburn Bay/Seton area in the southeast—future home to
the South Health Campus, new hospital, and proposed C-Train extension—is also poised for an upswing in demand. Given its potential for the future, a growing number of buyers are making
their moves now, before completion drives up prices. Homes in Auburn Bay/Seton currently start from the $200,000s for a condominium and from $300,000 for a single-family home. Prices can
reach as high as the $800,000s on the neighborhood’s 43-acre, man-made lake. A considerable improvement in Calgary’s oil and gas sector is expected to have the greatest impact on the demand for housing in the city in 2011. Infrastructure spending, as well as residential and non-residential construction will help support a better employment picture. Investment and production is once again on the rise in the oil sands. The south end has seen significant demand for retail space and larger commercial and light industrial properties—an indication that confidence is building among businesses as well. The agricultural sector has also benefited, fetching greater prices for product. With GDP growth forecasts ranging from three to 4.5 per cent, cautious optimism will characterize the real estate market next year.
Move-up purchasers, active in the mid-range, will play a greater role in 2011, which will help push up resale value. Average price is expected to reach $410,000, a modest two per cent gain, while sales remain on par with 2010.

Source: Re/Max Canada

posted in Real Estate News at Fri, 10 Dec 2010 18:52:18 +0000

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