As the year draws to a close, I have many things to be thankful for and I hope you do, too.
One thing that we Canadians can all be thankful for is an economy that weathered the storm better than most (if not all) other countries on the planet. Specifically in Alberta, we have been fortunate to see net migration rise in 2012, to have some of the highest wages in the country and to have a real estate market that has been experiencing a gradual climb, rather than the boom and bust that other markets in Canada saw this year.
Here is a recap on Calgary’s real estate journey the past five years.
Five years ago, in December 2007, our benchmark single-family house price in Calgary was $425,800. It wasn’t such a happy new year the next year… throughout 2008 and early 2009, that number continually dropped, sinking to a low of $373,700 in March 2009.
That benchmark number fluctuated through 2010 and 2011, vascillating between $385,700 and $412,600.
However, in 2012, we turned a corner and that benchmark price rose EVERY single month. Sometimes it was only by $300, but a consistent, steady growth allowed the price to climb back up to $433,600 in November. That number is still lower than the $451,300 peak we saw in the summer of 2007, but it is close enough that almost anyone who has ever purchased a house in Calgary has been able to sell for at least the amount they paid for it.
Condominium prices have followed a similar path and this year boasts the most total condo sales in the last five years – this is not even including the many pre-sales that have happened for new construction going up in Calgary’s East Village, Beltline and other neighbourhoods.
The towns surrounding Calgary saw a sharp decline in prices in 2008 and have had a slower time crawling back out of the hole, but the benchmark price is now back within 9% of the peak pricing from mid-2007 and the number of sales have seen a huge jump this year.
The luxury home market has been busy this year with 472 sales over $1,000,000 year-to-date in November. At the same time last year, there were 404 sales.
Overall, we have had an excellent year for real estate in Calgary, but forces outside of our borders continue to give uncertainty to the Canadian economy for 2013. I will be attending the Calgary Real Estate Board annual forecast in mid-January and will update you with the latest figures at that time.
I will be taking some time away this holiday season but please email me with any questions or comments. If you’d like to set up a coffee meeting in the new year to discuss your real estate goals for 2013, I would be happy to do so.
Thank you so much to all of my wonderful clients and supporters for a great year!
Warmest wishes for a restful, joyful holiday season!
