The pandemic has caused so much uncertainty, as well as tremendous turbulence in the real estate sector. Consequently, it has been more challenging than ever to know whether to make a move or sit tight. That said, thanks to interest rates remaining low, first-time buyers and investors are finding that it is the ideal time to make their move to Canada.
Keep reading to learn about some market insights for anyone thinking of investing in Okotoks and Calgary.
What’s Life Like in Calgary?
Calgary, Alberta, sits about a 3-hour drive north of the U.S. border at Montana and is the fourth-largest city in Canada. The local economy, which revolves around oil and energy, has not proliferated and diversified in recent years.
Calgary offers a desirable balance of culture, sports, and cuisine options and is home to Canada’s Sports Hall of Fame. Since restrictions have lifted further, many professionals are moving to Calgary, some returning from stints in more rural locations to ride out the lockdowns.
What’s Life Like in Okotoks?
Located just 15 minutes drive from the city of Calgary, Okotoks is a thriving community. It is primarily populated by people working in construction, health care, and other professional services.
Okotoks is one of those well-connected places near a major city and has a progressive business-friendly scene, yet manages to maintain an inviting small-town feel.
Real Estate Trends in Calgary & Okotoks
With Calgary witnessing its highest number of monthly sales in over a decade in March 2021, it’s safe to say that the property market in Calgary is currently going strong. Sellers who hesitated through the pandemic lockdowns are now listing, and buyers and investors are making the most of the low-interest rates. Currently, the average property price in Calgary is sitting at $481,000, representing a 3.2% increase year on year. At just 0.4% up on last month, however, there are signs of stabilizing the market and price growths as inventory is recovering and more properties are coming back onto the market.
The Okotoks property market is faring much the same. Current property prices are averaging $482,000, which is 3.4% up year-on-year, yet 3.2% down from last month.
Investing in Calgary Real Estate
Many who fled metro centers searching for more space during the lockdowns are now gradually making their return to the city. As the world opens back up, the attractions and conveniences of city-living are all back on the table and bringing residents back. Despite Calgary’s significant property value growth in recent times, it is still a relatively affordable option city-wise.
A two-bedroom condo in Calgary can currently be snapped up for an average price of $276,000, while the comparable property in Vancouver would be nearer an average of $986,000.
There is also currently room for significant rental income growth in Calgary. The average rent for a one-bedroom Calgary apartment is now $1,150 monthly, whereas a one-bedroom apartment in Vancouver will cost an average of $2,100 in monthly rent.
Investing in Okotoks
The thriving Okotoks economy is drawing workers from all across the city. In 2015, Okotoks was ranked sixth on Canada’s most Entrepreneurial Cities list, further adding to its growth as a hub for ambitious professionals.
Okotoks has also gained a reputation for being mainly focused on its sustainability efforts. The environmentally friendly section of neighbourhood Drake Landing is the first solar community in Canada.
When it comes to investing in Okotoks to rent the property out, properties that accommodate people with busy professional lives and preferences for sustainability are ideal.
Currently, three-bedroom detached homes in Okotoks are averaging at $541,000, while a two-bedroom townhouse is $270,000 and a 2-bedroom condo is $257,000.
Final Thoughts on Real Estate in Calgary and Okotoks
The property markets in both Calgary and Okotoks are currently strong. While both areas, like the rest of the country, are still experiencing strong sellers’ markets, there are some relatively affordable options for investment.
As a city, Calgary represents opportunities for city-living while maintaining room for growth in capital returns and rental incomes. Similarly, Okotoks is still very much an up-and-coming area in terms of development.
Landlords in the province of Alberta also benefit from the increased demand from people moving to the area for work. There’s room for significant movement when moving with upward market trends, as both areas certainly have room to grow when it comes to rental incomes.
Depending on whether you are looking to invest in an exciting metro area or a smaller town with sizable prospects, both Calgary and Okotoks have a great deal to offer. Both represent excellent opportunities for capital and income growth in areas that continue to experience increasing popularity.