January 1, 2019
2018 was an interesting year for Calgary Real Estate, with both good and bad. The bad news is real estate sales numbers are all negative: the number of sales are down 14% compared to last year and down 20% compared to historical averages, prices are down 2-3% year-over-year, and the days it takes to sell a property are up 20%.
"These trends are expected to continue through 2019 with sale prices experiencing further declines, while the rental market is expected to continue to tighten."
It is definitely a “buyer’s market”. The good news for landlords is vacancy rates are also down from 6.3% to 3.9%. These trends are expected to continue through 2019 with sale prices experiencing further declines, while the rental market is expected to continue to tighten.
What has been unusual is the lower vacancy rate has not immediately translated into increased rents. This is likely a result of Calgary’s continued high unemployment rate, a lack of confidence in the oil and gas industry, and while thousands of jobs have been added to Alberta’s economy this year, they are, for the most part, low wage service jobs that do not replace the lost incomes of highly skilled and educated oil and gas workers. Properties over $2000/month continue to be harder to rent while properties in the $1500-$1900/month range are experiencing strong demand.
2019 will undoubtedly present some excellent opportunities to acquire additional rental properties at lower prices. At the same time rental prices can’t help but increase as vacancy continues to decline.This is an ideal scenario for real estate investors, lower prices and increasing rents.
In addition to making use of Power Properties Realtors’ expert knowledge of investment properties, did you know, if you use a Power Properties Realtor® to purchase an additional rental property, Power Properties will waive the initial leasing fee (an $813 value). If you are interested in exploring what owning another rental property would look like, please contact us at firstname.lastname@example.org.
Jamie Palmer CPM®, Realtor®, B.Sc. (Hon).