Much speculation was made last summer about how the real estate market in the flooded areas would be affected. As we look toward the impending spring melt with hopes that such a disaster will not be repeated, I thought it would be interesting to take a statistical look at some of the flood-fringe areas in Calgary.
Keep in mind that not all homes in the communities I will mention were flooded, but I do believe these communities as a whole are on home buyers’ and mortgage lenders’ radar as having a potential flood risk.
From March through May 2013 – the busy spring market before the flood – Sunnyside, Bowness and Inglewood had 118 sales combined. From March 1, 2014 to today, these three communities have had a similar 119 sales!
Of these, 65 are single-family sales with a median price of $466,000 and median days on market of 17. The March-May period of 2013 saw a median price of $417,500 and days on market of 14.
The single-family market overall in Calgary has increased by about 10% in the past twelve months. The prices in these three flood-fringe communities have increased 11.6% so are actually exhibiting above-average growth!
During the same period in 2013, Elbow Park had 30 sales with a median price of $1,182,000. This year, Elbow Park has had 21 sales with a median price of $1,185,000, just a slight increase of 0.02%. However, this is a small sample group and tougher to evaluate accurately.
Taking a look at another affected market sector, there have been 41 condo sales in Mission since March 1, with a median price of $324,500. This is a slight decrease in sales from March-May 2013, when there were 48 sales, but still a 6% increase in prices from last year’s $305,500.
Calgary does have a truly optimistic spirit and I think that is being reflected in the general market confidence this year… our strong labour market doesn’t hurt either! Many of the flooded neighbourhoods offer a great lifestyle – walking and biking paths, quick commute downtown, parks and amenities nearby – and it seems homebuyers are not allowing the unprecedented flooding to hold them back from jumping in, even at non-discounted market prices.
