The flood waters in Calgary may have receded but the housing market is now being flooded with buyers affected by the high water. This is turning Calgary into a highly competitive seller’s market as the number of properties available for purchase or rent have decreased significantly.
According to realtors in and around Calgary, in the past week there have been a high number of offers and sales made on residential homes primarily due to the number families affected by the floods now looking to relocate. The current market has become so competitive that many buyers are forced to make offers quickly to avoid multiple offers or losing the property altogether, and there are even a surprising number of homes being sold sight unseen.
According to the Calgary Residential Rental Association, in recent months the rental market has seen a decline in vacancy due to a strengthening labour market and now the added need for housing due to floods has contributed this steady drop. People struggling to find available rental properties are now looking at alternatives such as purchasing a home, which also further depletes the supply of available properties in the market.
Prior to the floods, the Canadian Mortgage and Housing Corporation’s (“CMHC”) 2013 spring survey recently stated the Calgary rental market had only a 1.2% vacancy rate. As a result, rental rates have begun to increase significantly. According to the CMHC, rent for an average two-bedroom apartment in 2013 was $1,202 a month, an increase of 7.9% from $1,113 per month in the previous year.
Edmonton’s rental market is also experiencing increased residential demand and lower vacancy rates. CMHC has noted that the vacancy rate for one-bedroom apartments in Edmonton declined from 2.3% in 2012 to 1.1% in 2013. For two-bedroom apartments, the vacancy rate declined from 2.8% in 2012 to to 0.9% in 2013.
If you are looking to get into the real estate market by purchasing your own revenue property, now is a good time to act. Contact us today to see how you can become an Armchair Landlord and benefit from Alberta’s real estate market without any of the day-to-day hassles of being a traditional landlord.
Calgary Herald- Floods Change Market Dynamics