Hey!
Each month I write you a summary on Calgary’s housing supply. Understanding housing supply helps anticipate near term price movements (the newest content is coming soon for you!).
Today, let’s chat about housing demand. Here’s a list of several demand factors that influence Real Estate:
1. Inter-provincial migration.
2. Wages/employment.
3. Credit cycle.
4. Belief.
As data is available to me, I’m writing to update you on these factors. For today, let’s focus in on immigration to Canada, and migration to Alberta.
Immigration to Canada:
- 2020 migration numbers were way down, for obvious reasons.
- Federal government immigration numbers for 2021 are back on pace, and expected to climb moving forward.
- A growing population continues to create demand for Canadian Real Estate, and other services.
- We can see below the massive number of permanent resident (PR) admissions in the fourth quarter of 2021 which drove total cumulative PR admissions for the year.
Migration To Alberta:
Not surprisingly, during our housing downturn we saw several years of net negative inter-provincial migration numbers. The tables have now turned! More people are moving to Alberta which is a factor that helps propel demand for housing.
When I think of Calgary’s Real Estate as a pie, and how my business fits into this pie, I’m humbled. My Mortgage business is a very small (but growing) sliver of the whole pie.
That said, I’m working with families moving into Calgary from other parts of Canada. I also am hearing the same from my business partners. I think people are cashing out of Real Estate markets and purchasing homes here (very cheaply from their perspective).
I’m also working with families new to Canada. I think Calgary is the land of opportunity for these folks. I’m seeing hard working new Canadians enter the work force, save up 5% down payment and purchase a family home! I’m honestly not sure how this happens in other parts of Canada when I observe their home prices?? I think there is A LOT of opportunity here and I think more people are seeing this too.
Let’s keep an eye on other Real Estate demand factors such as wages/employment, credit cycle and belief.
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I hope this information is helpful for you. I think understanding some of the fundamentals that move our market helps add value to you.
Have a great day!
Chad Moore
P.S.
Anyone else’s belt working a bit harder today ;-)??
P.P.S.
Outlander is complete! I am looking forward to the 2nd book. I also have 3 books set to deliver this week from Amazon (I had a gift certificate).
P.P.P.S.
Like many others, I find this time of year great for planning, reflection, journaling and reading. I have plans and changes coming in my Mortgage business that I’m excited to create, build and bring to market. I’m sharing more with you all soon!
