LIVING BIG, LAKESIDE
Buyers eye Chestermere
Living by the lake is better, and often larger, than even in the big city next door.
That largely sums up why Chestermere boasts the highest average price for a single-family detached home among all Calgary and surrounding area homes (outside of Canmore).
“Chestermere's resale market has been following the same trends as Calgary's,” says realtor Gabriela Galeana with Royal Lepage Benchmark, who works and lives in the community.
Buyers are clamouring for single-family homes.
Yet the community of about 20,000 people, east of Calgary, surrounding a reservoir attracts many buyers seeking the lifestyle it offers and one other critical benefit: larger homes.
Galeana notes Chestermere is largely a single-family home community with persistent strong demand. As a result, “sellers have more negotiating power than the buyers,” she says about the typically higher average prices than elsewhere.
In May, for example, Chestermere saw 58 sales, of which 51 were single-family homes, an increase of more than 262 per cent year over year, Calgary Real Estate Board (CREB) figures show.
Although activity was deeply impacted by the pandemic last year, sales this past May far exceeded the 10-year average.
At the same time, inventory fell by 6.9 per year over year with 140 homes listed, or about 2.4 months of supply, a more than 70 per cent decrease from last year.
June appears to have built on that momentum with the community seeing 69 sales (as of June 28) with supply falling below two months, preliminary CREB numbers show.
The growing demand and falling supply have pushed the benchmark price of a detached home (as of May 31) up more than about 13 per cent year over year to $558,900.
By comparison, Calgary's benchmark price grew about 12 per cent to $533,300, while Airdrie's grew about 12 per cent to $425,100. (Only Canmore's benchmark price was higher, exceeding $1.1 million.)
Although more costly on average, buyers are getting more for their dollar in Chestermere, Galeana adds.
“While the typical detached home in Chestermere is priced higher than the typical home in Calgary, it is also generally newer and larger,” she says, adding most sales in the community are in the $500,000-$599,999 range.
In Calgary, buyers can find a home for $600,000 with about 2,000 square feet of space, she notes. “In Chestermere, you can buy a home for the same price (with) 2,500 square feet.”
CREB'S chief economist Ann-marie Lurie says Chestermere, like Cochrane and Okotoks, typically have higher average sales prices because the municipality features many homes with larger floor plans and lots than Calgary.
“So the benchmark price in Chestermere may be higher, but you are getting more space,” Lurie says.
Of course, the unique lifestyle around Chestermere Lake has long been a key attraction, Galeana adds.
“If you love water sports, Chestermere is definitely the city where you want to live.”
She says the municipality has seen its population grow by more than 34 per cent since 2011, and its future is bright given the ongoing demand for spacious homes, largely fuelled by the pandemic and low borrowing costs.
“Being in the last stage of reopening… buyers have become even more confident about making home ownership a priority,” she says. “There is confidence, enthusiasm and a positive sentiment fuelling interest.”