Calgary has much to offer. Recent data shows we have a comparatively low crime severity, We are the highest raked Canadian city on the EIU Livability Index, we are the 3rd best city in the world to find a job according to Movinga and we are the gateway to the Rockies with world class recreational opportunities.
According to the latest data from the Calgary Real Estate Board (CREB), the average price of a home in Calgary increased by over 9% between April 2020 and April 2021, 17% between April 2021 and April 2022 and an additional 1.2% between April 2022 and April 2023.
Calgary has been experiencing steady population growth over the past few years. This growth can be attributed to the city's robust economy, excellent quality of life, and diverse range of cultural and recreational amenities. As more people continue to move to the city, growth will continue have an impact on the real estate market and housing prices will increase for the foreseeable future. Although that growth will have its highs and lows and values may fluctuate slightly, over time, we will see continued growth and long term property value appreciation.
According to the latest census data, Calgary's population increased by over 14% between 2011 and 2016, bringing the total population to over 1.2 million people. This trend has continued in recent years, with a projected increase of over 16% by 2026. To put that in real numbers to digest, that is approximately 70 people per day. The city's growth rate is well above the national average, and this trend is expected to continue for the foreseeable future.
A major factor driving this population growth is the city's strong economy. Calgary has a robust energy sector, with several multinational oil and gas companies having offices in the city. Although this sector has highs and lows that affect the economy, there is long term average growth. The city also has a thriving tech sector, with several startups and established companies choosing to base their operations in Calgary due to the favorable business environment and access to a skilled workforce. Add the growing supply chain infrastructure with procurement, logistics, and supply chain management are some of the fastest growing opportunities in the city. Calgary sits in the CANAMEX corridor from north to south and is a gateway on rail and highway corridors east and west
A large part of my business, in the past few years, has been moving families to Calgary from out of province. They chose Calgary over their last home because they feel their quality of life for their family will be better here. As an aside, they often need work-from-home spaces.
As more people continue to move to Calgary, there is a significant impact on the real estate market. We are experiencing that impact right now. The demand for housing has increased and the supply of homes has remained well below the 10 year average. This is resulting in higher prices for both rentals and purchases. Although we may not see this rate of growth consistently, from year to year, it is inevitable that property values in Calgary will continue to experience long term growth.

The federal government is offering a new tax credit to help make it easier for Canadians to care for adult relatives in their own homes. The multi-generational home renovation tax credit took effect Jan. 1 for expenses related to building a secondary suite for a family member who is a senior or an adult with a disability. The credit will provide a 15 per cent tax refund on expenses of up to $50,000 to a maximum of $7,500.
The secondary suite must be for a related adult over the age of 65 or living with a disability, including a grandparent, parent, child, grandchild, sibling, aunt, uncle, niece or nephew. The secondary suite must be a self-contained housing unit that includes a separate entrance, bathroom, kitchen and sleeping area. 
Additionally, the home being renovated must be inhabited or reasonably expected to be inhabited within 12 months after the end of the renovations. 
Certain things cannot be claimed, such as:

• furniture;
• household appliances and devices;
• costs associated with landscaping, housekeeping, or security—in other words, anything not integral to the unit itself;
• costs of financing a renovation, such as mortgage interest costs; and
• construction equipment, tools, mortgage interest costs, and any costs associated with routine repair or maintenance.

In addition, claims are subject to reduction pending other forms of government assistance. 
To find out more on the Government of Canada website  CLICK HERE

The graph above shows how home owners are presented with opportunities to “buy up” to their next home.  The green line represents the value of the existing home, the yellow line, the value of the move up home and the red line represents the difference in price between the two homes.
​In this chart, the percent value change is the same for both the existing and the move up properties. When one increases by 2%, so does the other. That is generally the way the market reacts. Notice that as the market matures throughout this 25-year period, even though the percentage in value increase stays the same for both homes, the dollar value of the higher priced home increases more.
Now let's look at the price difference. This is the critical factor that can influence the buying decision for people moving up. It makes sense to move up when the difference is at the least amount. The dotted red line shows the upward trend in price difference, where the solid red line shows the actual difference in price. As you can see, there are times where the actual difference is above or below the trend line. When prices are stagnant or dropping, the price difference is lower than the trend and when prices are increasing, the actual difference is above the trend line.
If the owner of the existing property wants to take advantage of the best opportunities to move up they need to make a move when the market shows the least difference in price. They should make their purchase when the actual price difference is below the trend line or when prices are either flat or are falling.  This would be during a buyers' market. 

First, lets define market value: "The likely price a property should bring in an open, competitive market under conditions favorable to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.”
I could spend a lot of time breaking down that definition, but I will let you work through it for yourself. The purpose of this post is to help you understand the process I use to arrive at market value.

Here are the 5 steps I use to find market value:

1. Look at the history of the property, the city assessment, the location of the community and location of the property within the community and the lot orientation​. Consider the current market both city wide and within the subject’s community as, in the end, this will all influence the listing price
2. Find comparable properties that have sold, are for sale and have their listing expired. The market value of real estate is established by a real estate agent using what is commonly known as a comparative market analysis. This is a procedure that is exactly as its name describes. The agent compares other properties, listed,  sold and expired, to the subject property and arrives at a market value range.
3. Establish a range of pricing. Every community has a range of pricing and the comparables help to establish that range. I will often look at all properties that have sold in a neighbourhood, not necessarily to use as comparables, but they put a property in context.
4. Subtract and add value to the subject based on features, selling time, location and condition. The value of a home can be affected by many variables and the agent looks at all of those and compares to the subject property. For example, and this is an oversimplification to make the point, If a comparable property has a fire place and the subject does not, a fireplace may decrease the value of the subject by $4000. 
5. Compare the results of the analysis to the range of pricing and establish a value range for the property. The subject property will fit into this range based on the features, condition and location. If a house is substantially renovated or upgraded, it may have a market value at the top of or just above the top of the range.  If a house is in poor condition it may be priced at the lower end of the range. 
   
   

Armed with this information the seller and the agent can work together to decide on the listing price for the house. No agent can tell their client the absolute selling price of a home.  That is determined by the market. The purpose of the Comparative Market Analysis is to establish a range of pricing and advise the seller on what is a most likely outcome for the sale of their property. 

Would you like more information about pricing your home?