Financial Post writer Garry Marr discusses a recent report on the state of local condominium development and availability from the Calgary branch of the Canadian Home Builders’ Association. Sal Guatieri, an economist for the Bank of Montreal, highlighted the recent spike in demand for residential products such as condo units, which has made getting a new property difficult:
“Thinking of moving to Calgary’s red hot, job-spinning economy and settling right into a brand spanking new home? Good luck. The available supply of completed new units dropped below 500 for only the third time on record (back to 1992) in April, and only 15 new condos were on the market,” Mr. Guatieri said in an economic note.
The article pointed out that this strong sales activity is correlated with significant improvements in population and wages, which came with the gradual stabilization of the local and global economic situation. Local experts, such as trusted Calgary Realtor® Christine Ordze, also tend to lead buyers to the most affordable options and the most reliable avenues for favorable lending rates, allowing potential clients to take advantage of better prices and fostering a virtuous cycle of purchase and word-of-mouth.
The article also notes that as the economy leveled off towards a more stable level, prospective buyers became more eager to “move up” and pay at a premium so that they can enjoy the unique advantage of living in high-density and high-traffic areas that only condominiums can provide.
In addition, Guatieri observed that the number of people moving to Calgary for work in an improved economic environment is such that the market is having a hard time keeping pace with the demand. All of these factors have made the current climate one of the best times to procure a unit.
In a related analysis, REALTOR Magazine mentioned that an influx of wealthy international renters and buyers has contributed to what is increasingly being referred to as the new condo boom. With this greater level of entry comes a surge of new high-rise and top-end compounds as developers scramble to capitalize on the renewed interest.
Interested parties who are considering buying a new condo in the inner city area are encouraged to approach Calgary realtors® that have an intimate knowledge of where the most suitably priced units are located to make the most out of their purchase.
(Source: Calgary’s housing market making a dramatic comeback, Financial Post, June 10, 2014)