Spring is here!!! We are excited to celebrate our fifth anniversary of the Smith & Griffith Real Estate Team with CIR Realty this summer. 5 years have flown by, and we are extremely proud of the service and expertise we provide to our clients. Thank you for your continued support, interest, and business. Our team is growing!!
In April, we welcomed Rees’s daughter Cassidy to our team. Cassidy is a recent Bachelor of Applied Science degree graduate from Olds College, with a major in Agribusiness. Growing up in rural Alberta, Cassidy has been heavily involved in the agricultural and western lifestyle sectors of the province. She spends her spare time, training and competing in barrel racing as a member of the CPRA and the ABRA. Time spent with her father, Rees, has allowed her the opportunity to experience the crop production, cattle, and real estate industries first-hand, therefore putting this knowledge to work as an Unlicensed Real Estate Assistant will make her an asset to the Smith & Griffith Real Estate Team at CIR Realty. Welcome Cassidy!
Residential Real Estate Market Update
The 2022 real estate market in Alberta has remained strong; inventories are relatively low in most communities; thus, the market has continued to favour the Seller. New spring listings will help support a strong market in the months to come and help stabilize the prices as more supply comes online to match the current demand.
We have seen a significant uptick in out-of-province buyers snatching up homes and/or investment properties in Calgary and area. Majority of these buyers are from Ontario and British Columbia. The Calgary Real Estate Board’s forecast for 2022 predicts that sales activity will be strong across all major Alberta centers, but the largest gains will occur in Calgary. Alberta led the country in interprovincial migration in the last quarter of 2021; that’s the first time since 2015. The average home price in Calgary now is around $535,000, a far cry from the average of $1.3 million in Toronto. No wonder Ontarians believe Alberta is on sale! The Calgary region has been the most affordable housing market among the four largest Canadian cities over the past three years. Additionally, Alberta’s favorable income tax rates give an extra incentive to move here. And of course, a strong real estate market relates to Alberta having the fourth-largest oil reserves in the world. Historically there has been a strong correlation between home prices and oil prices. Thus, the current rise in oil and gas prices is positive for the Alberta real estate market.
The Bank of Canada has set its sight on curbing the highest inflation numbers seen in over 3 decades by increasing the lending rate with a series of interest rate hikes. April saw a 0.5% increase with similar increases forecast throughout the rest of this year. Russia’s ongoing invasion of Ukraine is causing unimaginable human suffering and new economic uncertainty. Price spikes in commodities and supply disruptions are adding to inflation around the world. These factors are the primary drivers of a substantial upward revision to the Bank’s outlook for inflation in Canada. Labor markets are tight, and wage growth is back to its pre-pandemic pace and rising. Businesses increasingly report they are having difficulty meeting demand and are passing on higher input costs by increasing prices. Consumer spending is strengthening with the lifting of pandemic containment measures. Exports and business investment will continue to recover, supported by strong foreign demand and high commodity prices. Housing market activity, which has been exceptionally high, is expected to moderate.
Farmland Real Estate Market Update
Farmland values once again pushed higher during this perpetual market of high demand and low availability for good quality cultivatable land. We find ourselves battling inflation in every area of our lives and farmland is no exception. When land comes available it is often a race to submit offers and hope that you can weather the storm of competitive offers from neighbors and large operators looking to expand further away than traditional farming practices once allowed.
According to Farm Credit Canada, the general trend observed across Alberta was stable to moderate increases in land values, with an overall average increase of 3.6% in 2021. This followed a 6% increase in 2020 and a 3.3% increase in 2019. Extremely dry conditions across the province had little effect on farmland values in 2021, since lower yields were partially offset by high commodity prices. Competition for land was strong because of the diversity of buyers, including supply-managed farms, crop producers, colonies, and producers’ motivation to expand their land base. It is the view of Serecon Inc. and other appraisers that the Farm Credit report may understate the rate of appreciation in Alberta as there is very little land available for sale and very strong demand. Serecon’s own analysis indicates a rate of 4.75% across the province with the strongest rate of appreciation in the Southern region.
If you are planning on BUYING, let’s set up an automatic MLS search email for your buying criteria and you will receive an email from us as soon as new listings hit the market. If you are thinking of SELLING and looking for an honest conversation about the real estate market, our team is here to help. Combined with our years of experience, expertise, and market intuition, we can provide the most comprehensive evaluation/comparative market analysis of your property. We have the tools and skills to bring you top dollar for your real estate! Give us a call!
Auction Update
We would like to thank all our Sellers and bidders that participated in our 2022 Timed Online Auction launch. Our timed on-line auction method of selling farm and ranch land, residential, recreational, and commercial real estate is a powerful tool for both sellers and buyers. This method brings together the power of the MLS system/Realtor.ca for maximum marketing exposure pre-auction and the anticipation, energy, and transparency of a live on-line bidding process with a set final sale date. We are looking forward to more auctions coming in 2022.
Our team’s community involvement continues to grow as Rees was recently appointed to the Olds Regional Exhibition Board of Directors. The Olds Regional Exhibition, formerly Olds Agricultural Society, is one of the essential pillar organizations in Olds. This board position is in-line with Rees’ volunteer work involving youth and agriculture as he also continues to serve on the Calgary Stampede Youth Livestock (Steer Classic) committee.
It is so exciting to be back out at events, meetings and enjoying our freedom again. Looking forward to seeing everyone out and about.
Rees & Kari – Opening Gates to the Country & Doors to the City