This has pulled the market’s latest overall property assessments down $5 billion
Notable declines in the value of residential assets in Calgary have pulled the city’s latest overall property assessments down $5 billion compared to the same time last year, according to the local government.
In 2020, the median value of a single-family home in Calgary is at $455,000. This was markedly lower than the $475,000 in January last year.
A similar drop has been observed in the median value of condo units, from $255,000 in 2019 to $245,000 this year.
“Like some of the other sectors, the detached market is slowly moving toward more balanced conditions. However, it is still oversupplied, and this trend continues to weigh on prices,” CREA stated in its market report.
“Achieving more stable conditions will take time. Sales activity has been settling in at lower levels and is likely being influenced by the economic conditions and uncertainty weighing on our market,” CREA chief economist Ann-Marie Lurie added.
Meanwhile, non-residential values – thanks to the performances of the office, retail, and industrial segments – enjoyed 2% annual growth.
“Calgary’s diversification to distribution warehouses has added a reliable alternative to the oil and gas focused industry, leading to an attractive segment for investors,” the city stated in its news release, as quoted by CBC News.
“Overall, we see stability and increased values return to the non-residential market after a relatively difficult year for many businesses,” the release added.
