Interesting chart on population growth rates for Alberta. As you can see, net migration is basically nil. We are the fasting growing province however based on natural growth (babies!). Not sure what to say about Albertans in that regard... Take this info and the fact that it has been determined through covid that approximately 60% of those that make over $100,000 in North America can work from home. This is going to drastically change the landscape of home ownership and the type of homes people are looking for which is the main driver of why our real estate market is doing what it is currently doing. I predict that 2021 and going forward will see continued interest and housing market movement servicing this demographic.
Medium Term Housing Market - Possible Trend
Based on low interest rate policies of the Covid-19 pandemic, it appears from the following excerpt out of a recent Economist article that high asset prices are all but guaranteed. This is predicted to last for many years to come. Alberta, given its current economic situation, may not experience the same level of house market value growth as the rest of Canada but fortunately we will be somewhat safeguarded from a housing downturn because of the fed’s interest rate policies. There are some bright spots!
“…Low interest rates also mean that high asset prices are all but guaranteed. This will reinforce complaints about wealth inequality and intergenerational unfairness—complaints that carry more bite given the unequal distribution of job losses this year. Homeowners, mostly drawn from the professional classes, will benefit as they can take advantage of cheaper mortgages. So will homebuyers. One reason why housing markets are holding up is that the downturn has not hit the typical house-hunter. Those without wealth or access to finance will feel understandably aggrieved.” The Economist, Nov1st, 2020
Q3 2020 market Update
In the early spring of 2020, not one would have predicted the Q3 (July/August/September) sales of real estate in the Foothills Region would grow in sales volumes over the previous year. And grow it did! There has been a significant trend of people moving out of the city and into a more rural setting. Acreage sales are up 43% !!! The outlying communities have seen significant sales growth of 40+ %! The main drivers appear to be the need for space that embraces the needs of working from home or home schooling. Also, there is a strong desire to get away from densely populated areas and into a more relaxed setting. This is a trend happening across the country.
Inventory levels of homes for sale are extremely low right now which means if you are thinking of selling in the near future, now is the time.
Click through the various graphs below to view the stats.
May 2020 Market Update :: Calgary, Okotoks, Rural Foothills Real Estate
Covid-19 has had an expected impact on the local real estate market. Okotoks sales volumes for the month of May were down 37% over last year, but this is better than Calgary which saw a 44% decline in sales volumes. (Detached, Attached and Apartments) The bright spot was acreages in the MD of Foothills - Sales volumes were only 3 units less than 2019 which equates to a drop in sales volumes of 12.5%. Across the board, prices have dropped by an estimated 5-15% year over year depending on the price point, and type of property. The market has definitely favoured buyers. The $ Million properties sales volume in Calgary was down a whooping 63%.
On a positive note, my sales volumes exceeded my expectations considering we are in the middle of a pandemic. A huge thanks to all my clients and those that support me during these difficult times. Technology has made a big difference allowing me to be able to navigate the challenges of covid-19 and keep my clients and my family safe.