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
- 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)
- Mount Royal 26.44%
- Erlton 25.72%
- St. Andrews Heights 24.22%
- University Heights 23.32%
- Bayview 21.77%
- Lower Mount Royal: 21.65%
- Inglewood 21.59%
- Westgate 21.48%
- Rosscarrock 21.39%
- 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:
(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:
- Sunalta -4.46%
- Discovery Ridge -3.29%
- Diamond Cove -2.01%
- 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?