As predicted, the crazy times we experienced this year have started to level out. It is still a sellers market with 1 to 2 months inventory depending on product and area. We were way overdue for a price increase after 15 years of up’s and down’s and basically no growth overall in that time frame. I feel positive about Alberta’s economic outlook in the years ahead and feel Real Estate is a great investment and we shouldn’t fear to media’s “recession in 2023” talk.
Population Projections for Alberta and how it effects Real Estate - Alberta
Alberta is poised for a great future. Our economy will, as always, have its up’s and down’s but over the longer term, the provinces entrepreneurial spirit and quality of life will promote population growth which in turn will be one of the main drivers of a healthy real estate market. Good advice from a professional in the real estate business on buying and selling over the short term will become important as our market shifts to a more balanced one over the course of the remainder of 2022. Please feel free to reach out as I am always happy to help in guidance; be it a renovation project, upsizing, downsizing, buying your first home or simply investing in real estate.
Sales volumes drop from early spring highs and prices level out in May 2022
Demand remains strong with limited supply for buyers, however, price gains have levelled out in Calgary and home inventory is starting to creep up. I predict that the remainder of 2022 will continue to see good real estate volumes and by the fall of 2022 we should start to reach a balanced market for supply and demand.
1st two weeks of May indicate the market levelling out
After another record breaking month for residential real estate sales in April, there are signs of the market coming back down to earth. Sales volumes for the first 2 weeks of May are down 14% from the first two weeks of April. The number of homes selling for list price or higher has gone from 66% in April to 50% for the first two weeks of May. There is talk of an interest rate hike of .5% June 1st which will add some summer ice to our red hot market. House price gains should start to level out in June. On average, Calgary is up 33+% over pre-covid levels.