It was about 10 months ago that the floodgates opened and devoured much of southern Alberta. Today, the land is dry and real estate activity carries on. In fact, the housing market could be considered to be booming in many parts of the province, including Calgary. There are, however, some parts of the city where homes that have been hit by this disaster have experienced a 10% price drop.
Some of the neighbourhoods in Calgary were hit hard with the flooding last year. In some of these communities, the damage was severe and some homes had to be demolished as a result. In these communities, housing prices have gone down as much as 25%.
Some lenders are asking for extra documentation and an inspection to confirm whether a home was damaged by the flood or not. Some of these lenders include the TD Bank and RBC. Sometimes potential buyers will have to provide extra proof of any flood repairs even when the house in question is far away from the location of the 2013 Calgary flood.
The spring season is upon us and with it comes high real estate activity. Some of the after effects of the flood are still showing through even though there are brisk sales happening and multiple offers being turned in for many homes. In some parts of the city there are still repairs going on in homes that sit beside empty lots where houses used to be. In all, a total of 15 neighbourhoods and 2,000 homes were affected by the flood and experienced a reduction in market values. Fortunately, the tide is starting to turn and property values in these homes are starting to return to the prices they were at before the flood hit.