StatsCan released data at the end of September revealing that Alberta has set the Canadian record for annual net interprovincial population growth. People are arriving from other countries as well as other provinces. From July 1, 2022 to July 1, 2023, Alberta experienced the fastest year-over-year demographic growth of all provinces and territories at just over four per cent. That means that more than 184,000 people were added to the Alberta population, bringing our total population to about 4.7 million.
Experts believe that the cost of housing is one of the reasons why Alberta is so attractive, with real estate here being much lower than in other areas of the country. In August, the Calgary Real Estate Board (CREB) reported an average home price of $570,700, which is a record high for the city, but still far less than prices in Toronto and Vancouver.
The availability of suitable real estate plays a major factor in its cost. With 2,171 sales, detached home levels were 17 per cent higher than last year and amongst the highest levels reported for October, according to CREB. Inventory levels are low, however, at 40 per cent lower than levels traditionally available in October. This is allowing home owners to take advantage of the market and sell their homes at higher prices.
Build, baby, build!
To help house Alberta’s booming population, as well as keep real estate prices affordable, there has been a massive increase in housing starts. New home construction is the highest it has been in 16 years. The number of housing starts recorded in Alberta, which are technically defined as the beginning of construction work on a building where a dwelling unit will be located, jumped by 21% in September compared to the month before. There were more than 49,000 starts in September, the highest since August 2007. Most starts are multi-unit urban projects, which downtown dwellers have more than likely noticed.
The option of purchasing an apartment condominium is becoming more and more attractive as interest rates remain high and look to be staying that way for a while. Apartment condominiums are more affordable, and with the number of brand-new options coming on the market, complete with a number of amenities, they are also appealing. So far in November, 27 apartment condominiums have been sold in Calgary, an increase of more than 68.75% from last year. The median price for an apartment condominium is $292,000, up from $260,000 last year.
What does mean housing mean for real estate value?
Apartment condominium owners, especially those in older buildings, may be watching the number of new buildings going up with a bit of nervousness. As new options become available, the market could eventually lead to lower prices. This is why it’s very important to always keep investing in your property in order to maintain its value. Do your best to consistently budget for regular upgrades, and be quick to respond to repair needs. Go through your condo regularly, inspect everything closely, and make repairs quickly.
Ways to keep your property attractive for buyers include:
- Beautiful flooring such as natural wood or engineered hardwood provides a polished look that will last and attract buyers.
- You can make a kitchen look like new just by painting cupboards to lighten them up and adding new door handles and pulls.
- A backsplash can add new life to a kitchen, and is a relatively cheap project that can often be done yourself.
- Upgrade your storage spaces with shelving and clothes racks that make sense.
- Change out old and yellowed switchplates and outlet covers for newer ones for a subtle improvement.
- Upgrading your existing appliances is an investment that can positively influence your asking price.
There’s no assurance like good home insurance
Lane’s Insurance is a leading Alberta insurance broker offering the very best in home insurance coverage for complete peace of mind. We work for you, not the insurance companies, and therefore can provide non-biased, expert advice and a number of different options from Canada’s most respected home insurance providers. At Lane’s, you will be partnered with a specialist who will be your personal contact for all things insurance. Even though we may not be your provider, we are always your source for good information. To learn more, or to obtain a quote, please contact us at our Calgary, Edmonton, Banff and Alberta offices.
