Looking Ahead to 2023 by Looking Back at 2022
They say that those who don’t know history are destined to repeat it – and while “they” probably didn’t have condo communities in mind when coining that phrase, we have no qualms about running with it to introduce today’s blog topic!
We’ve kicked off 2023 in earnest at this point, which has us looking ahead at what the next ten months will bring – and looking back at what lessons we can learn in order to tackle the coming year as strategically and, well, awesomely!
Let’s see what history can teach us.
Five Key Condo Lessons to Take Into 2023
1. Condo Inventory Scarcity is Here to Stay (At Least For Now)
Condo inventory was not particularly easy to come by throughout 2022, and that trend appears to be continuing for the foreseeable future. While the Bank of Canada’s recent series of interest rate hikes may have cooled off the market, they’ve also signaled that their rate hiking cycle is nearing its end. This is expected to result in a surge in demand as buyers begin to feel comfortable once more navigating the market with a predictable, stabilized rate to work with.
Coupled with the Alberta real estate market’s ongoing resilience – particularly within the condo sector (more on all of that later) – and you’ve got a recipe for ongoing inventory shortages carrying through from 2022 and into 2023.
2. Sustainability and Net-Zero Conversations Will Continue
2022 brought with it more extreme weather events, further fueling conversations around sustainable energy practices, carbon footprint size, and net-zero goals throughout the industry. Onsite solar power systems will continue to be a topic of discussion for condo boards, particularly as conventional energy prices continue to soar (although there are a few things condo owners can do to help put a freeze on their heating bill).
Government legislation introduced last year aiming to ban the sale of gasoline-fueled vehicles by 2035 will also be a major factor heading into 2023 – and heading into every year for the next decade-plus, really.
Condo corporations will sooner or later all need to start educating themselves on the logistics (and, in some cases, plain feasibility) of installing electric vehicle charging stations on the property. Many of these sorts of discussions had already begun in 2022, and you can expect them to pick up steam as we push through 2023.
3. Inflation Will Still Play a Factor (But Hopefully Not as Big as Last Year)
2022 saw Albertans endure record-breaking inflation across the board as prices rose on everything from groceries to gas to electronics. The higher cost of living has many folks stretched quite thin – a scenario that could start to impact condo corporations as owners may find themselves less and less able to comfortably manage their finances.
While inflation rates may be cooling off, the cost of items has yet to really decrease in any real way since it’d been driven sky-high. This should cause condo corporations to take note; all they need to do is look back to 2022 and see how many building projects were interrupted or put on hold as the rising cost of supplies caused budgets to be rapidly outpaced and overwhelmed.
Does your condo have a significant renovation or project planned for 2023? Be sure to check those costs again, get quotes that are guaranteed or otherwise locked-in, and confirm that your reserve fund is flush enough for the job. You can thank us later. 😉
4. Alberta’s Real Estate Market Will Continue to Be Attractive
Our province found itself in a unique position last year in that while many other real estate markets saw a dramatic run-up in prices as a result of pent-up demand in the aftermath of the COVID-19 pandemic, we just sort of, well, didn’t.
Our growth was much more modest throughout 2022 – meaning that now, you can get some serious bang for your buck moving to Alberta from other, more-expensive provinces like BC and Ontario. Couple that with a robust energy sector and a burgeoning tech and film industry, and Alberta starts to look like a pretty attractive place to call home.
And when it comes to where people are calling “home,” well, you’ll never guess what sort of real estate they’re after…
5. Condo Real Estate in Particular Will Keep Doing Well
Similar to the larger picture of real estate across the province, condo prices simply didn’t rise in cost during 2022 the way that other property types did, meaning that they have further to fall as the market settles into a cooler state of being.
The return of in-person work has also meant that urban real estate has once again ratcheted up in appeal as suddenly, people have a real reason to want to live downtown and close to the office – one that was lacking during the earlier work-from-home era of the pandemic.
All of this adds up to condos continuing to be a hot commodity on the real estate market – and that’s a scenario that suits us just fine. The more folks out there who love the condo life, the better, as far as we’re concerned!
We hope that this look back at 2022 gives you the tools you need to find condo-centric success in 2023. Knowledge is power, after all! Looking for a few more tips on what to expect in the months to come? Contact us at Catalyst Condo Management today – we’ll be happy to chat about what’s on the horizon for condo communities in the year ahead!