Calgarians Reel at the blow of Energy East:
The shelving of The Energy East Pipeline project is leaving many Calgarians feeling like they don’t have much to be thankful for this Thanksgiving weekend. The fur is flying laying blame in all political corners as excuses are mixed with bare-faced lies. Was it the National Energy Board’s changing the rules during the application process, the low price of oil or the fact that two other pipelines have been approved that will compete with Energy East? Whatever the reason it was not a good day for Calgariarns.
The two approved pipelines are Kinder Morgan’s Trans Mountain expansion at $6.8 billion plus the Line 3 replacement project. Between these two projects we will see an increase in pipeline capacity of about one million barrels per day. I think that is something to be excited about! I found this interesting: I looked up the Kinder Morgan and Line 3 projects on the Internet and found an article in a Global news article from November 29, 2016. At the bottom of the page there is a link to a video article titled: “Tran Canada’s Energy East: Not enough oil for that pipeline, analysts say.
Here’s the link:
Yet amid the calamity we have a stable and resilient real estate market. Detached home continue to outperform condominiums although the summer and early fall market’s pace has slowed. The most accurate market momentum indicator is the “Absorption Rate” or “Months of Supply”. At two months of supply a market is considered balanced. The detached market has slipped to having about 3.8 months of inventory on the market which favours buyers. This is because it indicates that there is more product for them to choose from and relatively fewer buyers for the homes that are listed for sale. While it would be nice for markets to always be going up the fact is that the detached homes have seen a respectable run so far this year and this seasonal entrancement is normal and expected.
Most often when we talk about Calgary real estate we mention the contrast between the detached market and that of apartment condominiums. While I don’t want to leave people feeling left out the reason is because all other residential properties fall somewhere in the spectrum between these property types. Attached single family homes, row housing, town homes, bare land condominiums and others all fall somewhere between the detached and apartment condominium markets.
The Calgary Real Estate Board has reported that in September we had a small decrease in detached home sales (-2.5%) and this was further outpaced by an over balance of new listings that came on the market (12.9%). Interestingly this was not the case for apartments: Apartment sales increased year over year (5.0%) and the number new listing decreased (1.26%). Now that’s a switch, condominium momentum improving and the detached market declining!! We haven’t seen that for awhile.
The Market in a Nutshell:
Keep in mind that these are average numbers for the entire city and the values of specific properties will vary greatly. If you would like to know the numbers for other market segments and/or for your market area you are welcome to email or call me and I will calculate and send those numbers out to you.
Remember these are rough average numbers and each community and property within that neighborhood is unique. You are always welcome to call to discuss your home and specific market area. . I’m always here if I can help with real estate advice.
Thanks for tuning in again! I wish you have every blessing over this coming Thanksgiving w
Always at your service,
Calgary Home Pros – Re/Max Mountain View