Many industries from urban development to Calgary business were represented at the event. “How’s the Market” was headed by a panel of experts including Guy Huntingford (CEO of Urban Development Institute), Mario Toneguzzi (Senior Business Writer at Calgary Herald), Anne-Marie Lurie (CREB Chief Economist), and Craig Alexander (Senior Vice President and Chief Economist at TD Bank).
Here are some of the main highlights of the event.
1. Guy Huntingford discussed the city’s Municipal Development Plan. This involves making the inner city of Calgary more dense. Communities such as Kensington and Sunnyside need to be more populated in the future. However, tearing down the old buildings and building mansions does not add more people, it only moves them.
2. Anne-Maire Lurie highlighted that Calgary property values will continue to improve in Calgary. There will be a higher than expected growth rate and price gains because of the seller’s market conditions. She said that when looking at supply issues, it will be very similar to the 2007 boom when builders couldn’t build homes fast enough.
3. The Conference Board of Canada estimates the Calgary population will be at 1.5 million by 2018. This leads to the main question: where will all of these people live? Calgary has to densify and build upwards or outwards. If the city does not expand, there may be a crisis concerning enough homes in the city to meet high population needs.
4. There is good news in the forecast. Calgary is still one of the most affordable markets in Canada. This is due to Calgarians having a higher income compared to other Canadian cities. The average mortgage percentage of a Calgary income is about 25%, while during the boom in 2007, that percentage was as high as 30%.
5. Lurie added that new condos in Calgary have traditionally been built for resale, but we are expecting some new condos proposed to be built for rental use. Also, more renters will turn into buyers due to lack of choice in the city, and there will be more condo options for first-time home buyers.
Overall, the Calgary real estate market is affordable and will remain steady for the next four years.
For more information on the forecast, or if your looking to buy or sell a Calgary condo, please contact CIR Realtor Karim Hassam at firstname.lastname@example.org or at 403-689-9594.
Calgary Urban Living
Calgary Urban Living