Now is the Time to Buy a Home in Calgary and Edmonton!
March 3, 2020
Right now is an opportune time to buy in Alberta’s major markets. Home prices are down, and availability is up, which means homebuyers can find their dream home for a great price in very desirable cities.
The Alberta real estate market has seen some less than ideal conditions recently. Despite this, it doesn’t mean buying and selling homes should stop; residents just need to be strategic.
Buyer’s Markets in Alberta
With price decreases still occurring for active listings, now is an amazing time for Albertans to purchase in this beloved Canadian city. Nestled on the eastern foothills of the Rocky Mountains, this urban centre is the perfect balance of city living and natural surroundings. The CNBC ranked Calgary as the fifth most livable city in the world1 based on more than 30 factors, including health care, education, infrastructure, stability, and culture – who wouldn’t want to own a home in Calgary?
Sales activity improved nearly 12% in January2 and new listings fell almost 8%. This is the right step towards more balanced conditions in the Calgary real estate market, albeit a slow one. As conditions become more balanced, there is less advantages for homebuyers regarding price and availability. If you’re looking to buy a home in Calgary, whether it be your first home or an investment or for your retirement, don’t wait to buy!
For first time buyers, they could not be at a greater advantage in today’s Calgary market. Without having a home to sell, these buyers can take advantage of the low home prices, plus ample choices on the market. This is a long-term investment that young buyers should be taking advantage of.
For investors, Calgary is an excellent city to buy a rental property in. The overall vacancy rate is 3.9%, as per the recently released 2019 Calgary Rental Market Report3 by the Canada Mortgage and Housing Corporation. The average rent is $1,181 and the report notes that improving labour market conditions continues to drive rental demand up. Home to not one, not two, but six post-secondary education institutions4, there is a huge market for student rentals. The University of Calgary4 is one of Canada’s premier education institutions; it is ranked #1 in Canada, #2 in North America, and #9 worldwide in the category of “young” universities, which are 50 years old or less.
For downsizers, there is an opportunity for soon-to-be or existing retirees to purchase their retirement home below typical home prices in Calgary. If someone was able to sell their larger home as market conditions improve, while also purchasing a home now with an extended closing date, they could hit the sweet spot of saving big on their “forever” home.
To sweeten the deal, you can receive $2,000 cash back* when you buy a home in Calgary and use a Purplebricks REALTOR®! Give us a call today at 1-855-757-2275 and we will connect you with a local REALTOR® in your neighbourhood. Need more information? Learn how it works here.
Did you know Edmonton is one of Canada’s sunniest cities5 with 2,299 hours of bright sunshine per year? As a comparison, Toronto only gets 2,066 hours per year6 meaning Edmonton is 11% sunnier, and perhaps the residents are 11% happier? And when there isn’t sunshine, you can expect to see the Aurora Borealis in the wintertime. If you still need to escape the cold, San Francisco is only a 3-hour flight away, plus Edmonton is home to an International Airport with over 60 non-stop destinations worldwide. Beautiful surroundings at home with convenient access to the rest of the world – sign us up!
Like Calgary, the real estate market in Edmonton is slowly moving to more balanced conditions. New listings are down which has helped inventory levels ease to have a nine-month level of supply, compared to the ten-month supply of January 2019. Higher priced home sales in the region have brought up the average selling price. Despite this, prices remain lower than the 2014 highs2.
Edmonton may be the only major city in Canada where you could purchase a home at 2014 prices. As the market inevitably improves, there is major opportunity for home buyers to capitalize long term on their home purchase.
For most first-time buyers, they couldn’t dream of getting a home at prices from 6 years ago, let alone having nine months of supply to choose their perfect home from. Now is the perfect time for Edmontonians to purchase their first home.
For investors, vacancy rates are on the decline and averaged 4.9% in 2019. The 2019 Edmonton Rental Market Report7 by the Canada Mortgage and Housing Corporations notes that apartment and condominium rental markets tightened due to demand outpacing supply, and average monthly rent increased to $1,114. Like Calgary, Edmonton has many colleges, technical institutes and universities8 where thousands of students are looking for rentals near their campus.
For downsizers, Edmonton is a great city to retire in. As previously mentioned, the extra hours of sunshine and easy access to international flights could be the perfect location for those looking to live large in their twilight years. Couple that with being able to take advantage of low home prices right now, that’s a win-win!
To make homebuying even better, you can receive $2,000 cash back* when you buy a home in Edmonton and use a Purplebricks REALTOR®! Give us a call today at 1-855-757-2275 and we will connect you with a local REALTOR® in your neighbourhood. Need more information? Learn how it works here.
1 These are the world’s most liveable cities in 2019 (CNBC)
2 Alberta Real Estate Association Market Report: January 2020
3 Canada Housing and Mortgage Corporation's Rental Market Market Report for Calgary CMA
4 Post Secondary Education in Calgary (Life in Calgary)
5 Edmonton Facts (Explore Edmonton)
6 Sunshine in Canadian Cities: Average Hours & Days a Year (Current Results)
7 Canada Housing and Mortgage Corporation's Rental Market Market Report for Edmonton CMA
8 Post Secondary Education in Edmonton (City of Edmonton)