As of May 12, 2014, nearly 30 percent of real estate in Calgary had been sold above their listing price. This trend was mostly a result of local land development, and a shortage of properties for sale in the province. Though the situation is likely to change in the near future, it’s nonetheless amazing to see how these two factors, current events and inventory, can turn the Chestermere real estate industry into a seller’s market in just a span of weeks.
However, these aren’t just the only factors that play a role in the market. Social trends, like population growth, are also important because an influx of people to a particular area fuels demand for more homes, thus increasing real estate value. Economic factors, meanwhile, determines the people’s spending power. A good economy produces more jobs and higher income, and a house or a condo is one of the first things that people spend their money on.
Lastly, local environment and infrastructure can influence the demand for residential properties, since people want to live in a neighbourhood with a low crime rate, reliable public transportation, and has easy access to general utilities. With all these in place, even negative influences, such as a sometimes unfavorable climate, can be offset and become negligible in people’s choice of real estate.