Real estate prices are up in the north east communities of Calgary, at least in the resale sector. This is contrary to what the rest of the city experienced in 2015 and a trend that is heralding in the “new north” era in the City of Calgary.
From Memorial Drive north past the airport and east of Centre Street, the North East quadrant of the city has the most affordable real estate in town. As the market gets tougher in 2016, the North East may come out on top as the city’s most desirable area in which to live. A cache that this particular quadrant has never really had.
According to the Calgary Real Estate Board, the annual benchmark price for a detached home in the North East went up by 7.05% last year. Mix in the benchmark price for attached homes and apartment condos, the figure rose by 6.21%.
This quadrant experienced the most significant price gain, followed by some areas of the east side of the city that saw a 5.5% gain in single-family home prices.
According to CREB® chief economist Ann-Marie Lurie, homes in the North East are not only affordable, they are likely being purchased by people who aren’t dependent on the oil and gas sector for employment and are in more stable industries.
In 2015, the benchmark price for single-family homes in the City of Calgary as a whole was $514,050, compared to the benchmark price in the North East of $400,092. Quite a difference.
The benchmark price, to clarify, is not an average. Read more about it here.
When looking at the strength of affordable housing in this quadrant one can also look at some of the new communities north of the airport.
SkyView Ranch, a new development from Walton, is home to 4,000 people and is now sold out. Homes were priced from the low $300,000s. The only homes available in this new community are apartment-style condos priced in the low $200,000s with a few more scheduled to be constructed. It was actually this project that accounts for the jump in benchmark pricing in the North East.
Cornerstone, another new North East community, will be ready for pre-sales in the summer of 2016. Affordable homes yet quality homes for people for whom job security isn’t as much of an issue, and buying a home isn’t as much of a risk. Young first-time buyers are snapping up homes and sharing them with parents and other family members.
The developers of the popular North East community of Redstone report that as of Jan. 20 they’ve sold eight new homes, well above sales in communities in other parts of the city.
The new communities will also soon have schools, stores and shopping and the Stoney Trail Ring Road is already in place. Folks in the North East aren’t waiting on it to be completed, at least on their end.
Some analysts are saying that the North East will be a leader when the market begins to recover.
The North East has long been considered industrial but many of the new communities offer great roads and less congested transit. Homes are close to exciting amenities such as Genesis Centre and Cross Iron Mills Shopping Centre. The multi-cultural aspect to the North East is another unexpected attraction as Calgary continues to open doors to new Canadians.
For those looking for an affordable home the “new north” is where it’s at.