Housing (Real Estate)

From Calgarypedia

1 Overview
2 Single Family Homes
3 Condominiums
4 Boom and Decline
5 Mortgages
6 Property Taxes
7 External Links
- 7.1 References

Overview

In recent years, the housing market in Calgary has exploded. The influx of new residents paired with an exceptionally strong local economy has made Calgary one of the most desired and expensive places in Canada to own property. The purchase price of the average single-family detached home in Calgary has more than doubled since the year 2000, from around $200,000 to $470,000 in May 2008.

Single Family Homes

The Calgary Real Estate Board divides the city into four zones based on the quadrant system. Zone A is northwest Calgary, B northeast, C southwest and D southeast.

The price of single family homes varies by zone (May 2008):

Zone	Average selling price	Houses for sale	Houses sold
A (Northwest)	$466,406	2,403	514
B (Northeast)	$339,572	1,250	225
C (Southwest)	$617,251	2,085	359
D (Southeast)	$438,186	1,265	270

Condominiums

Condominium sales in Calgary also continue to see tremendous growth. The average selling price for a condo in Calgary in May 2008 was just under $320,000. In some areas, this represents up to a 300% increase over prices in 2000.

The average selling price by zone in May 2008:

Zone	Average selling price	Houses for sale	Houses sold
A (Northwest)	$466,406	2,403	514
B (Northeast)	$339,572	1,250	225
C (Southwest)	$617,251	2,085	359
D (Southeast)	$438,186	1,265	270

Construction of new homes in Calgary continues to grow. As of June 2008, there were 15,000 homes and nearly 20,000 condominium units under construction in the city.<ref>http://www.creb.com/public/hbuyer/hb-stats-residential.htm</ref>

Boom and Decline

Home prices in Calgary reached an all-time high in July of 2007 before receding slightly to the current levels. In that month, the average home in Calgary sold for $507,047. There were 1,497 sales in July 2007 from a city wide inventory of 4,411 homes.

Condominium prices hit their all time high two months previous in May 2007, selling for an average price of $329,844. There were 1,150 condos on the market at the time and buyers snapped them up; 826 units were sold.

Mortgages

As a result of the dropping Bank of Canada interest rate, mortgages are more affordable today then they have been in years. An individual mortgage rate largely depends on the borrower. Income, down payment and past credit rating all play a role in how approvals and payments are determined. Generally, when prime rates fall, lenders recommend a variable rate mortgage for the short term. For a full range of information and how a mortgage can be tailored to your needs, see your financial institution to set up a meeting with a mortgage broker.

Property Taxes

All cities have some form of property tax and Calgary is no exception. In 2007, the property tax assessment system of the city changed to reflect the shifting population in different regions of the city. Some areas of the city, mostly inner city neighborhoods, saw their property taxes rise by as much as 17%, while others, the far suburbs, fell by up to 13%. For a current property tax assessment, visit the Property Tax Assessment Information Centre at The City of Calgary official website.