Calgary flood housing market

The Atlantic Cities’ coverage on the worst flood in Alberta’s history includes an especially dramatic statistic that puts the devastating event into some perspective economically:

the peak levels of the Bow and Elbow Rivers were [three times greater] this weekend than in 2005, when floods caused $275 million in damage.

While the cost of the flood isn’t nearly as significant as how it’s affecting the people of Alberta, it’s still an important topic that needs consideration, obviously. And as far as the province’s housing market is concerned, experts — responding to inquiries from journalists and members of the public — have begun to weigh in.

Speaking to the Calgary Herald, Calgary Real Estate Board chief economist Ann-Marie Lurie said:

“We would expect in the short term you’re going to see some listings drop, especially in the areas that were impacted. That’s a natural reaction to it. As far as demand goes, it can actually shift demand to other areas as the listings drop off. People might start considering other communities.”

Lurie also suggested that if there are less listings on the market, pricing activity could improve in some areas.

Meanwhile, Don Campbell, senior analyst and founding partner of the Real Estate Investment Network, writes on his blog that for the next few months housing sales, number of listings, days-on-market, average sale prices and building permits will no longer reflect the true direction of the market.

Calgary was on a nice and steady growth curve that matched the underlying economics, and this is no different now. Over the coming months, the number and quality of the sales transactions will not be on trend and should actually be ignored, or at least ‘seasonally adjusted’ in your big picture analysis. The next few months, the housing stats will not be indicative of market health. As people focus their attention to getting their lives together, getting their properties together and resetting their housing goals, selling or buying a property won’t be top of mind as priorities shift.

As those things shouldn’t be. But since this is a website for real estate news, we will continue to follow this side of the story while the humanitarian component continues to inspire.

 

 

Stay strong, Alberta.

Photo: Wilson Hui

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