Calgary Real Estate Market Update

January sees strong sales fueled by boost in new listings

January sales rose to 1,650 units, a significant gain over last year's levels and long-term trends. The growth was possible thanks to a rise in new listings totalling 2,137 units in January. New listings rose for homes priced above $300,000, but the largest gains occurred for homes priced above $700,000.

The rise in new listings relative to sales did little to change the low inventory situation in the city. With 2,150 units in inventory, levels are near the January record lows set in 2006 and are nearly 49 per cent below the long-term average for the month.

"Supply challenges have been a persistent problem since last year. This month's gain in new listings has helped provide options to potential purchasers, supporting sales growth. However, the growth in sales prevented any significant adjustments in supply, keeping conditions tight and supporting further price growth," stated Ann-Marie Lurie, Chief Economist at CREB®.

The months of supply in January was 1.3 months, falling over last month's and last year's levels. The persistent tightness in the market contributed to further upward pressure on home prices. The unadjusted benchmark price in January reached $572,300, a gain over last month and ten per cent higher than levels reported last January.For specific statistics regarding your community, please contact me

Valentines Day: February 14

Family Day: February 19

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Upcoming Events in Calgary

• YYC Chocolate Fest: February 1-29

• Chinese New Years Festival: February 3-11

• Calgary Hitmen Home Games: February 4, 7, 9, 10, 23, 25, 28

• Chinese New Years Gala: February 24

• Snow Rodeo: February 8-17

• Calgary Flames Home Games: February 15, 17, 19, 27

• Chinook Blast: February 2-19

• Calgary Folk Music Block Heater: February 15-17

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Home Owner Tips and Tricks

Decoding Calgary's Property Assessment: Unraveling the Valuation Methods

If you are a home owner in Calgary, you have likely received your tax assessment by now. In the ever-evolving real estate landscape of Calgary, understanding how the city determines assessed property values is essential for homeowners and investors alike. The assessment process, depending on the property type, evaluates one of three distinct approaches to ascertain its market value.

1. Sales Comparison Approach:

Residential Focus: When it comes to residential properties, the sales comparison approach takes center stage. This method involves evaluating a property's value by comparing it to recently sold properties with similar characteristics, such as size, location, and amenities. By analyzing recent market transactions, assessors can pinpoint a property's market value based on comparable sales.

Fine-tuning Accuracy: Although the sales comparison approach tries to align closely with current market trends, it can be off due to  the subtle nuances that make each residential property and community unique.

2. Income Capitalization Approach:

Non-Residential Realm: Non-residential properties open the door to an additional approach – income capitalization. This method involves assessing the property's value by capitalizing the income it generates. For commercial spaces, industrial units, or rental properties, this approach provides a comprehensive understanding of the property's financial potential.

Quantifying Potential Returns: By evaluating the income stream a property can generate, assessors calculate its present value, providing insights into its investment potential.

3. Cost Approach:

Comprehensive Evaluation: The cost approach applies to both residential and non-residential properties, focusing on the land's value and the depreciated replacement cost of the improvements. This method takes into account the expenses required to recreate the property, considering depreciation factors.

Building for Tomorrow: Assessing the cost of replacing the structure emphasizes the long-term value of the property, providing a holistic perspective beyond its current market conditions.

Visit https://www.calgary.ca/property-owners/assessment/review-period.html for more details.

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