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Biggest flood made Calgary Real Estate boom. Time to panic?


Record floods are driving up demand for homes on all levels, million dollar homes as well as started dwellings. The amount of activities are indicating a buying frenzy, no doubt about it. Not only first time home buyers, but

 people effected by the floods are looking to buy. High end neighborhoods along the Elbow River were among the areas hardest hit by the flooding, forcing some homeowners, whose properties will take at least several months to repair, to purchase homes elsewhere in the meantime.

Multi million dollar homes that would ordinarily take a year to sell are being snapped up for about 10 per cent more than they normally would within a matter of weeks; reported by realtors. That’s had a ripple effect throughout the city, as buyers have been forced to look further afield to find properties in their price range. This way buyers are bumped down creating a shortage in lower and higher priced properties as well.

Although the values of homes in flood-hit areas will likely drop we can expect prices across the city to rise and stay high for the foreseeable future.

July is usually a quiet month in real estate, except this year. Calgarians who would ordinarily be looking to rent are being pushed into buying. The rental market is a huge concern. Vacancy rate was already quite tight to begin with and now it’s literally non-existent. People have been panicking. I definitely think it’s spurred people on to make a decision quicker. Mortgage rates are still on the low side, however they are climbing. This will make first time buyers little nervous and start looking. People are eager to buy property not necessarily because they’ve been directly displaced by the flooding themselves, but because they foresee a tighter market ahead generally.

Will home values in flooded areas drop may depend on whether the city builds berms or dikes to keep the water out next time the rivers spill their banks. Lot of those locations when they have done this type of work, valuation has fully recovered.

Housing market was tight before the floods for renters and buyers. Many buyers now will look in bedroom communities in a hope to get a price break, however most likely they will be disappointed.
Some renters are going to consider ownership. Otherwise, they’re going to consider what’s available to rent outside of the town.
In preparation for the price fluctuations and interest rate 
increases, one must get a mortgage pre-approval in order to get a rate hold for as long as 120 days. To keep informed follow us on Facebook and get a FREE nobligation consultation to explore your options.

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