Airdrie Prices Drop in 2016 with Property Values Down for 2017

The City of Airdrie is the largest of all the communities surrounding the City of Calgary.  People shopping for a new home often look to Airdrie where they may find lower taxes, less expensive land costs and overall affordability.  Because Airdrie is so close to Calgary, and so many people work in the city to the south, it usually experiences the same ups and downs that the Calgary real estate market endures.  That certainly pertains to 2016.

The Calgary Real Estate Board says the demand for housing in Airdrie has held up when compared to long-term averages; however, along with robust sales there was a marked increase in inventory, both in new construction and resale homes which prevented home prices from also increasing. In fact, there was a bit of a price dip.  Here are some highlights for Airdrie.

• Single-family homes prices in 2016 averaged $385,617 which was almost 3% lower than 2015.  The single-family market in Airdrie fared better than Calgary was is directly attributed to Airdrie’s affordability.
• Benchmark prices for apartment condominiums and duplex/townhomes were, respectively, $202,250 and $266,300 last year which is a drop of 7% and 4.5%.  The attached market segment represented 30% of all recorded sales in 2016 in Airdrie.
• The number of residential sales in Airdrie in 2016 fell to 1,334 which is 6.2% fewer than 2015 but still significantly above long-term numbers.  Single-family homes accounted for 60% of total residential sales last year in Airdrie.
• The number of new listings to enter the marketplace last year was still above average.  In fact, new listings in 2016 were the second highest number on record. 
• There were fewer starts in Airdrie as new home builders consciously scaled back to allow for the absorption of current inventory.

Property Values Wane

Good news for buyers, not so good for some folks thinking of selling.  Property assessments for 2017 indicate that resident property is worth a little less this year – at least, for tax purposes.

The City of Airdrie, in its 2017 Assessment Shift Report, notes that detached residential dwellings have actually increased, on average, every so slightly – by .37% compared to 2016.  However, attached multi-family units – have dropped by 2.63%.

The bright spot are duplex homes in Airdrie which have increased in value by 1.23%.

The slight dip in single family home values is directly attributable to the economy, according to City of Airdrie tax assessor, Valerie Cottreau.

In a news story, Cottreau indicated that Airdrie isn’t alone and that this sort of decrease in value is being experienced around the province.  However, compared to other Alberta communities, values in Airdrie are actually stable which she says is because of Airdrie’s diverse economy.

Baysprings in a multi-family condominium community in Airdrie in which assessed prices dropped nearly 30%, with the average value dropping from $373,5000 to $261,769.

Next to Baysprings were condos in Old Town which fell by just over 11% and other multi-family units in East Lake which fell by just under 10%.

In terms of detached homes in Airdrie, assessors point to the community of Yankee Valley Estates where prices dropped by at least 5% - from the 2016 assessed value of $935,200 to $888,886, on average.

Following Yankee Valley Estates is Willowbrook with average assessed value decreases of 4.16% for single family units and 5.19% for condominiums.

Following real estate statistics, Cottreau also said new homes among other factors have caused these shifts in assessed property values in Airdrie.

She stated that she doesn’t believe that the drops in assessed property values in Airdrie won’t significantly impact her community.  The population of Airdrie is still growing, properties for sale are still selling and while scaled back, new homes are still being constructed which she says are all positive signs that Airdrie will continue to thrive in 2017.