Spring has finally arrived in Calgary with warm weather and budding trees. The perfect time of year to purchase your new home in the city! Or is it?

Alberta Projected to Lead Country’s Economy

According to the Calgary Herald, the province of Alberta is expected to lead the country in capital investment growth, largely driven by the economic strength of oil, gas and potential pipeline projects in Calgary. Furthermore, Calgary has been ranked among the three best places to invest in real estate for the long term out of 50 cities around the world, along with Toronto and Vancouver.

Due to its world-renown status as well as extremely competitive provincial income tax rates (Sotheby’s International Realty Canada), Calgary has experienced record growth, significantly boosting the need for housing in the city, particularly single family dwellings. Unfortunately, due to this surplus demand, Calgary has been facing a serious limitation in the availability of these affordable houses. Due to the lack of current real estate options, people who may have bought and sold throughout the city in order to advance are now holding onto their current homes (Calgary Herald, April 2014). As new listings continue to fall, this already undersupplied market becomes even tighter (Calgary Real Estate Board), creating a viscous circle.

This low level of resale and shortage in rental inventory combined with the high demand has forced a continuing trend in multiple offers, bidding-wars and above-asking prices and is driving a favorable sellers market (Sotheby’s International Realty Canada’s Housing and Economic Outlook & Calgary Real Estate Review, April 2014). In fact, 1 in 5 buyers have paid above asking price for their new home this year (Calgary Real Estate Review). Sotheby’s predicts that housing prices are expected to climb upwards as we approach summer and, according to The Financial Post, the average price for a single-family home reached $482,800 in February.

Large Increase in number of Home Owners Renovating their Properties

You may have noticed the influx of extensive renovations in many neighborhoods around the city. This is a result of homeowners choosing to either upscale their own modest house to boost their current equity, or purchase a more affordable property as a fixer-upper instead of paying top dollar for a more upscale dwelling. The Canadian Home Builders Association stated that Calgary was one of the largest employers of home renovations experts in the region in 2013 and that home investment is the single largest wealth-builder for many average Calgarians.

So this spring, instead of attempting to tackle the current hectic real estate market, call Alair Homes and allow us to show you an affordable way to transform your modest little bungalow into your own version of a palace. Or even a brand new custom build!