he Calgary Real Estate to view properties the first day
market has undoubtedly been they were on the market. Despite
one of the hottest in the prices falling back at the
Canada for several years with end of the year due to rising
house sales rising over 25% on inventories of available
average from the 2004 figures properties, the median house
according to the MLS reports. The value had still risen over 40%
booming Albertan economy has from the end of 2005.
brought a huge influx of
newcomers both from within Canada There were several factors
looking to reap the rewards of affecting the boom, most notable
the boom and immigrants from all were the shortage of skilled
over the world. With Calgary labour to carry out the work and
finally crossing the 1 million also the rising costs of the raw
residents in 2006, the city materials. Natural disasters –
reached a big milestone and is including the Hurricane Katrina
now considered “a big” city. disaster – had placed a huge
demand on the building supplies
The real story is that of the which led to shortages and steep
actual housing prices themselves. price rises. Builders were
While 2005 was a record year for eventually forced into selling
the prices with an increase of their new houses for “forecast”
over 15% from 2004, the first values as they were suddenly
half of 2006 saw an absolute taking over 12 months to build in
explosion in the prices with some cases. Even having the plans
bidding wars erupting for the authorized and permits issued
first time. Properties were caused delays due to the workload
selling the day they were listed of the city planning department.
without even a for sale sign
going up and there were line ups The rising prices affected many
Canadians looking to move What next?
internally for work as Calgary
rapidly grew too expensive for There were record amounts of
people to move to. The roll on listings on the market at the end
for the surrounding towns caused of 2006 and into 2007 which led
similar issues for previously to a slight (4%) roll back of the
cheap and affordable areas. prices. This looks set to
Airdrie, Cochrane, Okotoks, continue for a short while with a
Chestermere and Mackenzie Town to relatively quiet market with Oil
name a few also saw meteoric and gas prices down dramatically
rises in prices. The strength of and the announcement of the trust
the Canadian Dollar made fund taxation by the Federal
previously affordable property government reducing bonuses and
stretch out of immigrant’s pay rises in the previously
reaches and the foreign strong sector. There are still
currencies no longer had a indications of resurgence in the
favorable exchange rate. Oil and gas prices for 2007 as
the world demand continues to
With the Oil and Gas industry grow.
enjoying record profits and
several big companies relocating The vast Oil sands in the North
to Calgary, suddenly a lot more of Alberta are the scene of
Calgarians/Albertans were able to several mega projects that will
fund these higher prices. Banks help keep the Albertan economy
and Mortgage lenders were also moving forwards along with
offering higher debt to income manufacturing and tourism. There
ratio lending and longer is no doubt that Alberta is the
amortization periods to make the “Have” Province of Canada and
housing more affordable. many of its residents are
enjoying new levels of personal
wealth which gives analysts the City as it is and the
positive feelings towards another required growth in its services.
year of strong housing prices. New Schools and sports facilities
are required and many Doctors are
The weakening of the Canadian unable to operate their family
Dollar against the world’s major practices due to extortionate
currencies by around 10 – 15% is rents. These are genuine problems
beginning to attract foreign for the City to contend with as
investors and immigrants back well as the fact that there are
into the market place as the so many higher paid jobs
properties have started to become available that it is difficult to
more affordable. recruit good staff for the public
transport and other vital
The City of Calgary have been positions that keep the City
proactive by annexing large operating.
amounts of land around the City
limits to ensure its growth can How the year plays out is
continue. With the main demand certainly a fascinating and nerve
being single family dwellings wracking subject for anyone
there is a major concern about looking to move to Calgary or
“Urban Sprawl” and the level of invest in its housing market.
taxes it takes to maintain both
About the Author:
For monthly, accurate updates on how the market is performing and insight into what is expected follow http://www.onestopimmigration-canada.com/calgary_realtor.html for the latest information.
Read more articles by:
Dave Lympany
Article Source: www.iSnare.com 
