The Best Time to Plant a Tree
Calgary Real Estate and Rental Market Update
June 1, 2022 - Written by Jamie Palmer, President/Broker of Power Properties
There is an old proverb that says “the best time to plant a tree is twenty years ago, the second-best time is now.” It’s the same thing with real estate.
Alberta Leads The Way in GDP Growth
All indications suggest that Alberta will lead Canada in GDP growth this year and likely in 2023; it seems like every day there is a new news headline highlighting a new project being built in or around Calgary. Rents are soaring, sales inventories have stabilized, and the future looks healthy. There is currently strong inter-provincial immigration to Alberta with Calgary being a top destination for newcomers.
High Demand, Low Inventory
All of these factors are leading to increased demand for rental properties at a time when rental property supply is at an all-time low. Power Properties currently has a 0.35% vacancy rate! We are routinely getting multiple applications for the few properties we have available, which means we have to turn otherwise well-qualified applicants away because we have no properties to rent to them. This increase in demand and low inventory rental market has translated into rents increasing 25% year-over-year for detached homes and townhouses. Apartments are increasing but there is less of a supply constraint so we have not seen quite as robust an increase in rents in that segment. However, with increasing immigration, we expect to see further increases this year across all market segments.
Never a better time to invest in Calgary Real Estate
Right now your Calgary real estate has benefited from an approximately 25% year over year increase in value. This makes it a great time to refinance your existing home and rental properties, as you can maximize the amount of equity you can pull out with either a line of credit or a new mortgage. The equity you pull out can be used to purchase additional rental properties.
With all of the above in mind, this is an ideal time to prepare to purchase another rental property and Power Properties has a team of Realtors that specialize in purchasing investment properties. If you’d like more information about purchasing a rental property in Calgary, click here.
Save $800 by hiring Power Properties for your next investment!
As an added bonus, if you use a Power Properties’ Realtor to purchase a rental property we will waive your first leasing fee, saving you over $800!