How will the massive floods in Calgary affect the real estate market?

By
Mortgage and Lending with Arnason Mortgages

For the first half of 2013 Calgary was leading the country in the real estate market - high quality (and diverse) listings, average selling price, number of days on the market - and we were continuing to grow upward. Many people are now wondering what impact the massive and destructive flooding southern Alberta experienced last week will do to the housing market in Calgary and if our numbers will continue to lead the nation for the second half of the year.

There were over 700 MLS listings in Calgary that were affected by the flooding waters from the Bow and Elbow rivers, that is nearly 12% of the current market. While it is uncertain how many of these homes actually suffered physical damage, the areas in which they are located were all severely impacted. This has left many buyers anxious about potential price increases and decreased options.

“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,” said Ann-Marie Lurie, chief economist at the Calgary Real Estate Board. “As far as demand goes, it can actually shift demand to other areas as the listings drop off. People might start considering other communities.”

In addition to the potential shift caused by homes impacted by the flood that were already listed in the MLS system, we may see a drop in new listings as homeowners in the impacted areas hold off on their plans to sell or purchase a new home as they focus on rebuilding. After a traumatic event like the massive Calgary flood, many people will re-evaluate their lives and housing choices. This is expected to drive more buyers to new communities that were not affected by the floods and that have available inventory to sell on new lots.

For the nearly 200 homes that were purchased in heavily flood impacted areas in the last 30 days, buyers that have not yet taken possession are being advised to consult with their real estate agents and real estate lawyers. Each case will need to be addressed and evaluated on an individual basis as many properties are no longer in “substantially the same condition” as outlined in the purchase contract.

One thing is certain, the people of this amazing city have shown once again why Calgary is such an incredible place to call home. We are deeply grateful for the overwhelming efforts from volunteers, our public servants (police, fire, emergency, and government men and women), local businesses, and people opening their homes to help people in need. It is an honour to live and work in this city every day.

If you are thinking about purchasing a home, renovating your current home, or need to amend your moving plans please contact us anytime at 403-265-5363 or by email at larry@larryarnason.com This email address is being protected from spambots. You need JavaScript enabled to view it. – we would be happy to assist you in any way we can and ensure that you have every option available to you for your mortgage or home financing needs.

Best regards,
Larry Arnason
Calgary’s Mortgage Broker
www.larryarnason.com  

 

Calgary Mortgage Broker Larry Arnason

Calgary Strong!

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Calgary Mortgage Broker, Larry Arnason - proudly serving Calgary and the surrounding communities, Airdrie, Lethbridge, Red Deer, and northern Alberta.  You can lern more about Larry at www.larryarnason.com

One of Calgary’s leading mortgage brokers since 2003, Larry's success stems from a strong motivation to help individuals and families achieve their dreams and find their perfect home with the best mortgage options and rates. As a Mortgage Broker Larry works for you, not a bank or specific lender – he is able to provide impartial advice on your mortgage and find the best rate with the best terms and options to suit your unique financial needs whether you are buying a new house, renewing your mortgage, or refinancing.

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Alberta Calgary Region Calgary
Tags:
calgary housing market
calgary real estate
calgary mortgage broker
calgary floods

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Rainmaker
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Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance
Larry, great blog. I must believe homeowners with homes in designated flood zones, even if they weren't affected by flooding will find it much more difficult to sell in the future. My thoughts go out o those directly affected by the recent floods. We are certainly have a wet year in the southeast U.S this year!
Jul 02, 2013 01:45 AM #1
Rainmaker
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Kathy Stoltman
Rockwood Realty - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

Larry, I think flooding of a home is the worst. My thoughts and prayers to all that have been affected. No doubt this will impact home sales in the future.

Jul 02, 2013 02:30 AM #2
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