Why Affordable Condos Are Thriving in Calgary's Real Estate Market!
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- Опубліковано 2 лип 2024
- The Calgary condo market has seen a rollercoaster of changes since 2007, characterized by dramatic highs and lows. This fluctuation has left many condo owners holding onto their properties, unable to sell at desired prices. Despite this, the market shows potential for those currently owning or considering buying a condo. Financial strategies, such as understanding the concept of a terminal loss, which can be offset against income, are crucial for navigating this market. The market's current state also reflects a discrepancy in value appreciation compared to cities like Toronto and Vancouver, where condos have seen substantial increases in value.
Condos in Calgary are primarily seen as starter homes, often lacking the amenities that attract families, leading to a preference for houses. However, with the average condo price remaining relatively stable since 2007 and the high cost of detached homes, there's a growing interest in condo living. This shift is especially relevant among first-time buyers and changing demographics where families are started later in life. Furthermore, the condo market is expected to become more attractive to downsizers or 'right-sizers' seeking a change in lifestyle. Looking ahead to 2024, we predict strong growth in the condo segment, driven by these evolving market dynamics and the increasing need for affordable housing options.
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If you have lived in AB for over a decade you know pretty well how our economy works, I remember back in 2011-2014 alot of people moved from other provinces to AB for jobs and lower living costs, however many of those people eventually moved back out west or east because of layoffs or the weather or the fact that Calgary isn’t a huge metropolis and we simply do not have the density or the amenities. I believe we have entered a new area of living cost in calgary and home prices have gained a premium, however, if the economy continues to slow those people moving here buying up overpriced real state will have a serious reality check in the near future.
Totally get what you are saying and couldn't agree more. I sold my house and my rental condos when the prices are good. But before that I've noticed my new neighbors are ppl from Toronto, and doing phone customer service job or some other part time job here in Calgary. They complained how hard it is to get a decent job in Calgary and how the move isn't playing out as nicely as they expected. There will come a time when ppl realizes that and move again.
there is endless land around Calgary, Toronto is land locked, New York is Land locked, Vancouver land locked. The only thing propping up the housing market in Calgary is the slow building and the massive influx of new people to the city. Eventually it will even back out as building catches up with the Influx of new people coming in.
Apartments will only ever sell for the amount of rent you can bring in, Right now rent is high so they sell for more. when rent returns back down to a normal rate the prices of the units will also drop. Unfortunately condo fees and property taxes are very high on apartments and make them terrible investments. A 800 SQ/ft apartment pays half the property taxes my house does and receives so little from the city in comparison. Apartments will never be a good starter home and the best would be a duplex or townhome however you need to be on the board and watch the fees or the value will plummet if the fees get to high.
A duplex or townhome are great starter homes… for those that can afford them. Otherwise condo apartments are great options too. Not all buildings are made equal, but same with the various townhome complexes.
@@ChamberlainGroup apartments gain very little appreciation and carry large condo fees to maintain elevators Etc.
It's all in the math....as long as your positive cash flow it's a good investment in my opinion. I can buy a condo today and have positive cash flow.
Cost to build is high in Calgary right now $475K to build 2500 sq ft. and even when more land gets developed as soon as it gets on the market if they are selling lots, they will get picked up so fast. Ive been searching for weeks cant find lots under $400K.
You also have to factor in before mid 2010s the real estate markets in Van/Tor were just hitting the millions, townhomes were at $500K. Now in Van lower mainland townhomes are in around a million, houses under $2 mil. This flow to Calgary isnt going to stop in my opinion.
@@sj9367 About half of the cost of a new build is taxes and fees 400k for a small bit of dirt shows the problem the dirt is worth 15-20k the rest is city hall. the dirt stretches around Calgary for thousands of miles it is all dirt with soy or canola growing on it all worth nothing. Calgary could sustain around 6-7 million till we have a water problem. as the saying goes water will return to its level or the elastic band will return to its pre stretched position (or Snap and go to zero).
Calgary has enormous land mass, low tax rate environment and low regulations can potentially make it a victim of its own success. There can be over-supply which can in turn depress prices, obviously depending on whether you’re a buyer or investor.
Underrated comment. This is why prices fluctuate so much in Calgary
Yeah but now in Van & Toronto theres alot of ads selling Calgary as a affordable place to be. All the top big developers will now create competition in the market acquiring land to develop bcuz you can have all the land but im sure city of Calgary will only allow zoning for certain locations. Right now theres a estimated 100,000+ immigrants in next few years coming to Calgary, not including the Canadians moving into Calgary. I also believe as War progresses many refugees will be flooding in, plus trade costs rising, Canada will need to pump more oil. The prairies look promising.
As a retiree, I'm going to stay in my home as long as possible. Dealing with condo boards or getting good people to serve on them is a big drawback to living in one.
I think macroeconomics picture was s favouring upward prices. These include positive migration into Calgary , relative affordability cf bigger Canadian cities , likely lowering of interest rates and low inventory.
those who brought in 2007 still do not make a penny but there is hope for 2024 ,make yourself more happy you already paid 17 years of mortages already
Calgary real estate remained robust despite >10 interest rate rises. What do you think will happen when BOC starts reducing interest rates as predicted by most economists? It’s going to be a positive boost for the market.
Great thought and yes, I think we are just at the beginning of the calgary real estate run. We could see 3,5 or more years of positive growth. When interest rates adjust downward, there are many people on the sidelines waiting and the market will take off further.
Good Video
Thanks… you seem to be either binge watching the videos or commenting on them so your channel is seen. 🤔 🤷♂️ either way hope they are helpful!
Csn you elaborate on the situation where condos are being built with cheaper materials are more like sardine boxes? That's what I've seen. Walls and doors that are made from plywood. Sizes of two bedrooms at less than 1000 square feet with little storage. Bedrooms that don't allow for twin beds and even a dresser. It's great for very young singles or a young couple, but what about everybody else who don't feel like living in sardine boxes at half a million dollars?
Needs and wants of what a condo are, are different than 10-20 years ago. Bigger kitchens and bathrooms are a priority which eat into other living spaces. I don’t think it’s just condos being made with ‘cheaper’ materials, look at a 1960’s original home that is in excellent condition vs a new built. Very different construction methods and some materials are better and others are way worse too.
All I can say is that the other day real estate agent was running door to door asking if I want to sale my house. It looks like prices will go up big time in 2024. And I think by big $$$
It’s truly hard to know how much, but when interest rates start to drop, values will increase. It’s wise for those who are wanting to be in the market to get in.
Just want to know or if you can specify where in the city are you talking about these condos that have not gone up in price. I Just sold my condo and it was valued 80000 more from when I bought it. And all the condos that have sold where I had my condo when over the price it was original bought for.
What area?
@guitarmageddon1824 Calgary NW in Kincora. I would like to know what area they are talking about in the Video. Because I researched everywhere are where I live and all the condos that have been sold in the past year have been sold over original bought prices
As someone who grew up in calgary. Don't but a condo! At least buy a townhouse. Condos were and are terrible investments. With the demand of more "homes" they will build so many condos, which will devalue all apartment style condos. Land is an asset, the building is not!
I’m not disagreeing with you… but what does someone do who can only afford so much and it’s better to be in the market than on the sidelines watching values and their own rent increase?
@ChamberlainGroup Lower end single detached better buy than upper end townhome. Low end townhome better than mid level condo. When I say better I mean investment, not lifestyle. Buying a condo is still better than renting lol
you dont own the land with most townhomes here either....best to get into the market soonest you can. If this is what you can afford its still much better than continueing to rent. Rent's will keep increasing. Mortgage will decrease over time.
Typically the condo fee per month is almost the same as the Mortgage loan on the home. Condo fee is a KILLER. No wonder condos are a poor investment. its easy to say its affordable. Why dont you mention the condo fees- very conveniently not discussed.
Condo fees are not typically ever as close to your mortgage cost a month… only if you have a small mortgage, then maybe.
@@ChamberlainGroup typically 20-30% max never closed to mortgages
You're trying to convince people to sell their condos. I can see right through it.
Sure. If they want to sell then yes. If someone needs to buy then yes we want to help them too. If someone just wants info on the market then we want to offer that as well.