Best Performing Calgary Communities (February 2013)

Top 10 Calgary Communities: February 2013 Edition

Bringing a greater measure of transparency to the real estate industry has been a goal of mine since I first began my real estate career.  Bob Truman was the first agent to provide Calgarians with daily statistics and I followed suit, allowing everyone to carefully track market trends without having to wait for CREB®’s month-end report.

Now CREB® provides daily statistics too and I’d like to think we had a hand in that as they want to remain the go-to source.   I don’t know of any other real estate board in Canada that provides such in depth real estate statistics and on a daily basis.

However, sometimes statistics are too vague to be of any real use.  Consider this excerpt from a research firm:

The city of Calgary has seen inner-city neighbourhood real estate prices skyrocket in recent years as people become fed up with long commute times from outer suburbs.

Between 2000 and 2012, the 10 communities that saw the largest spikes in average home prices were in the city’s core and surrounding neighbourhoods.

Of these 10 neighbourhoods, the average home price increased between 205-260 per cent – a result that the Calgary Real Estate Board says is directly linked to proximity to more amenities and an increase in alternate transportation options.  (Source)

This left with me with more questions than answers:

  • Which 10 communities?
  • Why use average prices as a metric when many inner city properties are land value only and are torn down to make brand new infills?   How many sales were recorded in those communities (sample size)
  • Did the calculations include condos or just single family homes?

So starting this month, I’ll be posting the MLS® HPI which breaks down Calgary market trends to specific communities and property types:

  • 1-storey single family homes (inlcudes bungalow, raised bungalow, bi-level, split level, 2 level split, etc)
  • 2-storey single family homes (includes 2-storey split, 1.5 storey, 2.5 storey, 3 storey, 4 level split, 5 level split)
  • Single family homes
  • Townhomes
  • Apartments
  • Total Composite

The more “typical” the property is relative to market-wide properties in the community, the better the measure of change in market value.  For example, the price trends of a luxury penthouse unit is likely different from the other units in the building.

You’ll get a lot more out of the report than blanket statements like “the average home price increased between 205-260%” without any qualifiers.

The MLS® HPI will reveal pricing trends over a 1 month, 3 month, 6 month, 1 year, 3 year, 5 year, and ten year period for that community, while the Benchmark Price is for just the “typical” home in that community (See Attributes Report – Feb 2013 for more detail on each communities benchmark home)

I’ll leave it up to you to decide which time period you’d like to track. For example, you could compare today’s housing prices to 2007  and say that prices have been flat since peak, or compare them to 2004 and say they have nearly doubled.

For the purpose of the Top 10 Performing Calgary Communities monthly post, I’ll be using the Single Family Home category and the 1 year percentage change.   So without further ado:

Top 10 Communities For Single Family Home Price Growth
(Year-over-Year Change, February 2013)

  1. Mount Royal  26.44%
  2. Erlton  25.72%
  3. St. Andrews Heights  24.22%
  4. University Heights  23.32%
  5. Bayview  21.77%
  6. Lower Mount Royal:  21.65%
  7. Inglewood  21.59%
  8. Westgate  21.48%
  9. Rosscarrock  21.39%
  10. Lakeview  21.18%

If were to examine Mt. Royal’s history, we would see that prices were up only 3.65% from 5 years ago.   Below, you can see how it has been trending:

Mt. Royal

(Soon, CREB hopes to add charting capabilities for the HPI data.  I will post community graphs for you at that point)

There were some Calgary communities that showed negative price growth year-over-year:

  1. Sunalta -4.46%
  2. Discovery Ridge -3.29%
  3. Diamond Cove -2.01%
  4. Lake Bonavista Estates: -1.42%

Again, these are general price trends for single family homes.  Download the HPI summary report Feb 2013 to track the home category and time period of your choice.

What notable market trends did you discover?

3 responses to “Best Performing Calgary Communities (February 2013)

  1. Hi Mike,
    Good to hear from you regarding the above..!

    Any plans for developing a website like the one below:

    No doubt that you are providing a lot of info. Appriciate that you answer specific personal enquiries as well…!

    Thank you!!!

  2. Hi Mike,
    Thanks for the info above – very helpful! Are these rates similar to condos? Also, how has Mission performed and what do you think of that neighbourhood now and in the future. Also, for investment purposes, do you think Mission is a good area to buy a condo and rent out? I appreciate the advice – you seem very knowledgeable. Thank you!

    Hello Anon, you can find Mission Apartment-Condos on Pg 17 of the HPI report. They’ve been flat year-over-year (0.30%) and are down nearly -9% from 5 years ago. As for investments, much depends on the specific condominium complex. Focus on finding a unit that will provide you with positive cash-flow rather than hoping to profit from price appreciation.
    -Mike Fotiou

  3. Pingback: Best Performing Calgary Communities (March 2013) | Calgary Real Estate Review

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