In the early months of the pandemic, the Calgary economy was struggling, and the real estate market was struggling alongside it. Yet, renewed confidence and more control over the COVID-19 outbreak has led more people to dip their toes into real estate once again. Although the COVID-19 outbreak persists, people continue to see the value of property in Calgary.
Here’s a closer look at the recovery of the Calgary real estate market:
Calgary Home Prices
Calgary has long offered first-time homebuyers a more affordable option compared to other large Canadian cities like Vancouver or Toronto. In August 2020, Calgary’s average price for a single-family home was $466,000 while for an apartment it was $248,500. This is significantly less than average prices in Vancouver for single-family homes ($1,501,900) and apartments ($685,800). Notably, Toronto prices were not much less than Vancouver, sitting at $592,900 for apartments and $999,200 for single-family homes.
As an increasing number of people across other provinces migrate further away from dense urban sprawl in search of more square footage, Calgary is a prime choice for a balanced lifestyle at the right price. Residents can enjoy proximity to greenspace along with views of the mountains and a city-feel; this prairie city provides residents with the best of everything.
The Impact of Unemployment on Calgary’s Recovery
Earlier in the pandemic, one of the key factors affecting real estate in Calgary was the record-high unemployment rate. Calgary’s energy sector had faced devastating losses. Many believed the challenges posed to this sector may have lingering effects on the job market’s ability to fully bounce back.
Without enough financial power it was difficult for people in this city to invest in real estate thus slowing down market activity. Ultimately, mounting household debt also sidelined more potential homebuyers. Since the highest paying industries were hurt, this caused recovery to start with more affordable housing versus high-end housing.
Over the past few months, we’ve seen some jobs come back to the market which is helping to boost the economy and as a result, helping people purchase real estate. Calgary has seen marked improvements compared to the record lows experienced during the mandated COVID-19 isolation period, but economists say this city is still early in its journey to recovery.
Low Interest Rates
The Bank of Canada has lowered the benchmark interest rate to 0.25%. This is the lowest the rate has ever been and could encourage more people to take advantage in order to purchase homes. The government made this decision to bolster the economy, and within market like Calgary’s, the rate drop has been beneficial. For those who have had issues securing the mortgage funds they need at an affordable rate, this may be the right time to leap into the Calgary real estate market.
The Calgary Housing Market Activity is Gaining Momentum
A recent upward trend in the Calgary real estate market includes rising home sales and new supply. According to the Calgary Real Estate Board here’s how each property type performed in the market in September, giving us a general idea of current market activity:
Single-detached homes
In the month of September, sales were the highest they’ve been since 2014. With sales figures improving, this is driving prices up slightly. It’s also important to note that the recent gains in this property segment are driven by the affordable end of the market, not necessarily the luxury end.
Row houses
Sales for townhomes have also significantly increased compared to the year prior. Homebuyers may be attracted by the 7 per cent reduction in sale prices in this segment of the market year-over-year and also the fact that prices are 17 per cent lower compared to previous highs. Considering the apparent affordability, this may be an opportune time to purchase in this end of the market.
Semi-detached homes
With new listings coming to market, sales have improved for this property type, but slower than row houses and single-detached houses. Inventory levels overall are 21 per cent lower than last year, helping to reduce downward pressure on pricing. That being said, prices for semi-detached homes are starting to improve within certain districts in the city, including South, South East and East Calgary.
Apartment condominium
Unlike other types of properties, demand in the apartment condominium segment of the market is declining. Interestingly, this market segment is not experiencing the year over year gains like its counterparts. In September, year-to-date sales decreased by 16 per cent even with new inventory of condos entering the market.
This shift could be changing attitudes due to COVID-19. As people pivoted to work from home arrangements and home schooling their children in a city environment, this has fueled the desire for more living space. Being cooped up in condos during isolation without access to a lot of greenspace may explain the mounting demand for properties with larger floorplans and ample-sized backyards.
A closer look at the Calgary real estate market shows us that despite the COVID-19 pandemic and job loss, affordability continues to drive the market. This market is early in its recovery but is showing promising signs of maintaining this momentum as we move towards 2021.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
