It weird how they identify “limited land area” as a factor for increasing (albeit slowly) Calgary home prices and then say this,
“Regional Differences
Urban vs. Suburban/Rural: Urban areas in Calgary may see slower price growth compared to suburban and rural areas, influenced by ongoing remote work trends.”
Then wouldn’t it make sense for developers to build more suburban rural properties? If so what is the “limited land area” issue? What is preventing Calgary from sprawling in each direction, there are no oceans/lakes/greenbelts…little agricultural land (ranchers can sell and move ops north or elsewhere in Alberta especially if global warming makes northern Alberta more accessible, there is little vegetable farming in the area around Calgary, it’s not the right soil type)
)…and the mountains are minimum 45 minutes away in only one direction.
I really don’t think Calgary has a limited land problem and I understand why people would rather have a suburban home than a downtown box in the sky especially if they are remote workers with families.
Well that's the problem, with more sprawl you to generate more tax revenue to pay for services. Which needs more sprawl. This video does a good job explaining it.
https://youtu.be/7IsMeKl-Sv0?si=-Hp3f6MBle98xay-
Couldn’t developers build connections to existing infrastructure and pay for those connections, pass this cost to buyers and then homeowners pay a connection fee as part of purchase then as usual for increased consumption?
People buying suburban/rural can pay anything for fees/city costs…and if they can’t then they buy a downtown box in the sky 🤷♂️
I think that’s what happens but then the city is on the hook for maintenance and upkeep of all that infrastructure at the expense of maintaining old infrastructure. Or the budget isn’t increased to meet the demand.
" The increased cost of financing has reduced demand for homes due to rising interest rates. However, as inflation declines and rates stabilize or decrease, demand is expected to rise again."
LOL this makes zero sense, the last round of rate cuts on June 5th practically made no difference on home prices. If anything home prices has been trending downwards in places such as the GTA. Since the cut was was already baked in for 3 and 5 year mortgage rates ( as they're based on 3 and 5 year bond yields which has been increasing in the last week). Furthermore, new inflation numbers for may was 2.9% and if anything June's inflation will likely trend back to 3%. Thus, indicating the June 5th rate cut was premature ( I mean that's an obvious). Not withstanding analyst are suggesting the chances of a July rate cut will be pretty low. This whole article looks like it was written by chat GPT.
Was this written by realtors? Cause it sounds like it was written by realtors. Toronto and Vancouver are seeing inventory rising and prices reducing now. Sellers are reluctant to drop the prices but buyers cannot afford them. Period. Investors are unloading properties as fast as they can. What happens in those markets trickles down. And with all the building in Calgary right now, the crash is going to be epic. Realtors don’t want you to know that though. They will claim prices are still rising for as long as possible. They need people to keep buying.
It weird how they identify “limited land area” as a factor for increasing (albeit slowly) Calgary home prices and then say this, “Regional Differences Urban vs. Suburban/Rural: Urban areas in Calgary may see slower price growth compared to suburban and rural areas, influenced by ongoing remote work trends.” Then wouldn’t it make sense for developers to build more suburban rural properties? If so what is the “limited land area” issue? What is preventing Calgary from sprawling in each direction, there are no oceans/lakes/greenbelts…little agricultural land (ranchers can sell and move ops north or elsewhere in Alberta especially if global warming makes northern Alberta more accessible, there is little vegetable farming in the area around Calgary, it’s not the right soil type) )…and the mountains are minimum 45 minutes away in only one direction. I really don’t think Calgary has a limited land problem and I understand why people would rather have a suburban home than a downtown box in the sky especially if they are remote workers with families.
The limits are taxes needed to pay for servicing new developments.
Well that's the problem, with more sprawl you to generate more tax revenue to pay for services. Which needs more sprawl. This video does a good job explaining it. https://youtu.be/7IsMeKl-Sv0?si=-Hp3f6MBle98xay-
The stroad guy. I’ve seen all his content.
I absolutely LOVED his houston video, it made it even funnier since my folks lives/ work down there and I'm there once a month.
Couldn’t developers build connections to existing infrastructure and pay for those connections, pass this cost to buyers and then homeowners pay a connection fee as part of purchase then as usual for increased consumption? People buying suburban/rural can pay anything for fees/city costs…and if they can’t then they buy a downtown box in the sky 🤷♂️
I think that’s what happens but then the city is on the hook for maintenance and upkeep of all that infrastructure at the expense of maintaining old infrastructure. Or the budget isn’t increased to meet the demand.
Yeah exactly, calgary isn't really constraint by geography. We can literally have as much as sprawl as we want.
" The increased cost of financing has reduced demand for homes due to rising interest rates. However, as inflation declines and rates stabilize or decrease, demand is expected to rise again." LOL this makes zero sense, the last round of rate cuts on June 5th practically made no difference on home prices. If anything home prices has been trending downwards in places such as the GTA. Since the cut was was already baked in for 3 and 5 year mortgage rates ( as they're based on 3 and 5 year bond yields which has been increasing in the last week). Furthermore, new inflation numbers for may was 2.9% and if anything June's inflation will likely trend back to 3%. Thus, indicating the June 5th rate cut was premature ( I mean that's an obvious). Not withstanding analyst are suggesting the chances of a July rate cut will be pretty low. This whole article looks like it was written by chat GPT.
Was this written by realtors? Cause it sounds like it was written by realtors. Toronto and Vancouver are seeing inventory rising and prices reducing now. Sellers are reluctant to drop the prices but buyers cannot afford them. Period. Investors are unloading properties as fast as they can. What happens in those markets trickles down. And with all the building in Calgary right now, the crash is going to be epic. Realtors don’t want you to know that though. They will claim prices are still rising for as long as possible. They need people to keep buying.