Calgary’s real estate market is diverse and dynamic, offering a wide range of housing options for prospective buyers. One of the most critical decisions you’ll face when entering this market is whether to purchase a new construction home or an existing home. Each option has its unique advantages and challenges, especially within the context of Calgary’s evolving urban landscape. This blog will explore the pros and cons of both choices, helping you make an informed decision tailored to your needs and preferences.
Understanding New Construction and Exisitng Homes
Definition and Characteristics of New Construction Homes
New construction homes are properties that have been recently built and have never been lived in. These homes often feature modern designs, brand new appliances, and the latest construction materials. In Calgary, new construction homes are typically found in developing suburbs, newly planned communities and communities that are under gentrification, offering buyers a fresh start with the latest amenities and a home built to current building standards.
Current Trends in New Construction in Calgary
Calgary has seen a surge in new construction, particularly in suburban areas like Mahogany, Seton, and Legacy. These neighborhoods are designed with modern living in mind, featuring sustainable building practices, energy-efficient designs, and community-oriented layouts. The appeal of these new developments lies in their promise of a contemporary lifestyle, often accompanied by a sense of community that is carefully cultivated from the ground up.
Definition and Characteristics of Existing Homes
Existing homes, on the other hand, are properties that have been previously owned and lived in. These homes range from historic houses in older neighborhoods to more recent builds in established and developing communities. In Calgary, existing homes can be found throughout the city, offering a wide variety of architectural styles, sizes, and locations. Many buyers are drawn to existing homes for their character, established landscaping, and often, their proximity to the city’s core.
Historical Context of Calgary’s Existing Homes Market
Calgary’s real estate history is rich, with neighborhoods like Mount Royal, Inglewood, and Crescent Heights boasting homes that date back to the early 1900s. These areas offer a glimpse into Calgary’s architectural past, with unique home designs that reflect the city’s growth over the decades. The established nature of these neighborhoods provides a strong sense of community, making existing homes an attractive option for those who value history and neighborhood stability.
Pros of New Construction Homes
Modern Amenities and Customization
One of the most significant advantages of new construction homes is the ability to customize your living space and design features. Builders often offer a range of options, from floor plans to finishes, allowing you to create a home that suits your specific needs. In Calgary, new construction homes often come equipped with the latest technology, including smart home systems, energy-efficient appliances, and high-performance insulation, which can result in lower utility bills and a more comfortable living environment.
Lower Maintenance Costs
New construction homes generally require less maintenance than older homes, as everything from the roof to the plumbing is brand new and often covered by Alberta New Home Warranty. In Calgary, this means you can move in without worrying about immediate repairs or upgrades. Additionally, new homes are built to meet the latest building codes, which can provide peace of mind regarding safety and durability.
Appeal to First-Time Buyers
For first-time homebuyers, new construction homes can be particularly appealing due to various incentives offered by builders, such as discounted pricing (this is seen more in a buyers market and less in a sellers market), lower down payments, or even covering some closing costs (such as lawyer fees). Calgary’s real estate market is competitive, and these incentives can make new homes a more accessible option for those entering the market for the first time or those looking to avoid competing offer situations seen in some resale situations.
Cons of New Construction Homes
Higher Initial Costs
While new construction homes offer many benefits, they often come with a higher price tag compared to existing homes, as well as smaller lot sizes. In Calgary, new homes are typically priced at a premium, reflecting the costs of modern amenities, energy-efficient designs, and new infrastructure. This can be a significant barrier for some buyers, especially in a market where affordability is a growing concern.
Limited Location Options
New construction homes in Calgary are primarily located in the suburbs, where there is still room for development. While these areas offer modern amenities and planned communities, they are often further from the city center. This can mean longer commutes and less access to the cultural and recreational opportunities available in more central neighborhoods.
Longer Waiting Periods
Buying a new construction home can involve a longer timeline compared to purchasing an existing home. In Calgary, the process of building a new home can take several months, and delays due to weather, supply chain issues, or permit approvals are not uncommon. For buyers who need to move quickly, this can be a significant drawback.
Living in a Construction Zone
Most new construction homes are being built in communities still in their infancy. As a result, you can expect to be in close proximity to construction for the foreseeable future. When new communities are being built, focus is primarily on residential construction with amenities being developed further down the timeline in the communities developement. With this, it may be years before schools, parks and recreational facilities are completed. Trees and green spaces will take years to mature and even things like poor cell phone signal may be an issue in the early stages.
Pros of Existing Homes
Established Neighborhoods
One of the most significant advantages of purchasing an existing home in Calgary is the opportunity to live in an established neighborhood. Areas like Kensington, Bridgeland, and Altadore offer a sense of community that has developed over decades. These neighborhoods often feature mature trees, parks, and close proximity to downtown Calgary, making them highly desirable for those who value convenience and a sense of belonging.
Mature Landscaping and Character
Existing homes often come with mature landscaping, including fully grown trees and established gardens, which can be both time-saving and aesthetically pleasing. Additionally, many existing homes in Calgary feature unique architectural styles, from charming bungalows to grand heritage homes, offering character and a sense of history that new construction homes may lack.
Negotiation Leverage
In a competitive sellers market like Calgary, existing homes may offer more opportunities for negotiation. Whether it’s negotiating the price, requesting repairs, or asking for seller concessions, buyers of existing homes often have more leverage than those purchasing new construction. This can lead to significant savings, especially if the home has been on the market for a while.
Cons of Existing Homes
Higher Maintenance and Renovation Costs
While the charm of an existing home can be appealing, it often comes with higher maintenance and renovation costs. In Calgary, many older homes require updates to meet current standards, such as upgrading electrical systems, replacing plumbing, replacing roof shingles or installing new windows. These costs can add up quickly, making an existing home more expensive in the long run than initially anticipated.
Energy Efficiency Concerns
Older homes in Calgary may not be as energy-efficient as new construction. Issues like outdated insulation, older windows, and less efficient heating systems can lead to higher utility bills. Retrofitting an existing home for energy efficiency can be a significant investment, though it may pay off in reduced energy costs over time.
Potential for Hidden Issues
Existing homes can come with hidden issues that aren’t immediately apparent, even after a thorough inspection. Problems such as foundation issues, mold, or undesirable construction material use such as Poly-B plumbing, Asbestos or Aluminum Wiring can lead to unexpected repair costs. Buyers of existing homes in Calgary should be prepared for the possibility of dealing with these challenges.
Cost Considerations
Initial Purchase Price
When comparing new construction to existing homes, the initial purchase price is a critical factor. In Calgary, new construction homes typically have a higher price per square foot due to modern features and new materials. However, existing homes may offer more square footage or larger lot sizes for the same or lower price, especially in older neighborhoods.
Long-Term Costs
While new construction homes may have a higher initial cost, they often come with lower long-term maintenance expenses due to new materials and warranties. In contrast, existing homes might require ongoing repairs and upgrades, which can add to the overall cost of ownership over time. Calgary buyers should consider both the upfront and long-term costs when making their decision.
Location and Community
Accessibility and Proximity
Location is a crucial factor in any real estate decision. In Calgary, new construction homes are primarily located in suburban areas, offering modern amenities but often requiring longer commutes to the city center. Existing homes, on the other hand, are typically found in more central neighborhoods with easier access to Calgary’s downtown core, public transportation, and established amenities.
Community Development
New construction homes are often part of planned communities with a focus on modern living, including parks, schools, and shopping centers. These communities are designed to foster a sense of community from the outset. Conversely, existing homes are in neighborhoods with established communities, where relationships and community events have developed over time, offering a different sense of belonging.
Resale Value
Market Demand in Calgary
The resale value of a home is a significant consideration for any buyer. In Calgary, both new construction and existing homes can offer strong resale potential, depending on location, market trends, and the condition of the property. New construction homes may appeal to buyers looking for modern amenities, while existing homes in desirable neighborhoods may attract those looking for character and convenience.
Factors Influencing Resale Value
Several factors influence the resale value of homes in Calgary, including location, the quality of construction, and any upgrades or renovations. New construction homes in developing areas may see a rise in value as the community matures, while existing homes in established neighborhoods may maintain their value due to their desirable location.
Customization and Flexibility
New Construction: Design from Scratch
One of the significant advantages of new construction homes is the ability to design your home from the ground up. In Calgary, builders often offer elements of customizable floor plans, finishes, and layouts, allowing you to create a space that fits your exact needs and preferences. This level of customization is particularly appealing to buyers who want a home tailored to their lifestyle.
Existing Homes: Renovation Potential
While existing homes don’t offer the same level of initial customization, they do present opportunities for renovation. Many buyers in Calgary purchase older homes with the intent of upgrading or expanding them to suit their needs. This can be an excellent way to create a personalized space while retaining the character and charm of an older home. With modern construction and restoration methods, it is now possible to open up previously closed floor plans, remove load bearing walls, and transform dated living spaces into modern and sleek designs while maintaining elements and features of the original home.
Conclusion
Choosing between a new construction home and an existing home is a significant decision that depends on various factors, including your budget, lifestyle preferences, and long-term goals. In Calgary, both options offer unique benefits and challenges, and the right choice will depend on what matters most to you. Whether you’re drawn to the modern amenities of a new build or the charm and character of an older home, understanding the pros and cons of each option will help you make the best decision for your future. Always remember, the only thing that you cannot change about a property, is the location. Choosing an area that meets your needs should always be the first priority.
