After sudden rains caused the Bow and Elbow Rivers to spill their banks last year, it seemed like the Calgary real estate market would never recover. Instead, home investors have now begun to snap up luxury properties at significantly reduced closing prices.
Flood-impacted areas saw home prices drop more than $200,000 on average. This plummet in value was mostly caused by a lack of buyer confidence. Buyers were wary of neighborhoods most-affected by flooding, and they avoided making purchases lest some other freak natural occurrence reared its ugly head.
Calgary’s Real Estate One Year After the Flood
A Return to Norms
That fear, according to market assessments, has mostly dissipated. Now, people who were unable to purchase premium listings in markets like Okotoks real estate have been tempted by the sudden dip in home values. Homes in these areas are now selling for 90% to 75% of their original value.
Those discounts, like memories of the flood, have begun to recede, however. Housing prices are climbing steadily, and this gradual return to the norm has put a time limit on people seeking bargain-priced investments.
A Disaster of Biblical Proportions
Flooding occurred last year as a result of unprecedented weather patterns. An intense low-pressure system created sudden, torrential rainfall. Areas around Calgary saw downpours of 200-325mm in less than twenty-four hour periods. This abrupt change caused enormous amounts of runoff and melted snows to flow into the Elbow and Highwood rivers, which triggered a cascade of overflowing waters in other rivers like the Bow and South Saskatchewan.
It was called by many “the worst flood in Alberta’s history,” with damages ranging in $5 billion.
Calgary’s Resilience
Thankfully, though, the region has largely recovered. Citywide, Calgary real estate prices have actually remained largely unchanged outside of the areas hit worst by flooding. A city assessment report stated that only 0.4% of residential properties required an adjustment after the flood. Market conditions and a general low vacancy rate have kept values relatively stable despite the recent disaster.
This durability largely stems from market indicators such as Calgary’s phenomenal employment rates and steady population increase. Because of this, interest in Calgary real estate has remained high.
Rental Property Crunch
The most significant impact on the housing market was the devastating effect on rental properties. Countless affordable properties located within the city were damaged, causing a huge strain on the rental market. Calgary’s flourishing economy has continued to attract people to the area, and they are often seeking rental properties as a temporary housing solution.
Demand for rental properties has spurred construction of new condos, which will soon be available to rent or own once they are completed.
A Buyer’s Market
Now that market demand has buoyed interest in markets, such as Okotoks real estate, back to normal levels, more people than ever are considering buying homes. Investment opportunities abound, and housing prices in many neighborhoods are at unnatural lows.
If you want to take advantage of this unique buyer’s market, or if you are interested in Calgary-area properties in general, please contact our office. We’ll ensure that you get the property you want at a price you’ll love.
