There has been quite the run on real estate prices in our region the past few years. For the first time in a while, inventory levels are climbing which should create a balanced market very soon if this trend continues. New construction is starting to come online with some buyers now listing their homes for sale in preparation to move into new digs and this trend will only continue over the next 8-10 months. Calgary is up 53% YTD in new housing starts with June being a whopping 60% over June 2023. As mentioned in previous market updates, until new construction caught up with overall demand, we would not see any relief in house price escalation. Now, that is changing. All housing sectors look like prices peaked in June with July seeing either a flat growth in price or a slight decline. There are so many factors influencing real estate in our region and on a positive note we still have a lot of people looking to move here and interest rates look like they are going to continue to come down which will increase buy/sell movement and also help first time buyers enter into the housing market. Cautionary signs to consider are such things as a sell off and decline in the stock markets, Berkshire Hathaway selling off assets and squirrelling away $277,000,000,000 (yes, that’s how many zero’s are in $277 billion) in cash to get ready for what? Also, we have an election this fall south of the border which, like any election, creates anguish amongst the general public. BUT, as I have always, and will always say, if you are buying and selling in the same market, it is all relative. As the fall market approaches, sellers should temper expectations and not expect to sell in a day unless their home is in an extremely desirable location and also priced fair/aggressive. Buyers, you are starting to see more choice for the first time in months. However, don’t dilly dally if you find the one you want, as multiple offers were still a thing in JULY with 31% of detached homes in Calgary selling over list price and 36% of homes in Okotoks selling over list price.
June sales starting to level out....somewhat
New listings increased in June with new construction coming online which is helping ease the supply side of housing in our region. Great time to buy before the next round of interest rate cuts which will likely spur some renewed interest for buyers.
Alberta continues to grow in population which is the main driver of real estate demand
Alberta continues to grow and attract new people to our province. There is a short, medium and long term effect on real estate when this happens for both rental and home ownership demand.
Up and Up :: Calgary and Regions Spring 2024 Real Estate Market
As summer approaches, the long spring market that started in February looks to continue the upward price trajectory for a few months yet. More inventory is just starting to come online. New housing starts are up considerably which once this product hits the market and fall approaches we may see more inventory. However, we still have net migration coming to our province which means market conditions will continue to favour the seller. Apartment and townhouse sales are the big story due to affordability and also availability. There is very little inventory for homes priced under $600,000 in the region. With interest rates starting to come down, some current home owners may be able to finally afford and qualify to port their mortgages and make a change in home ownership which will provide some much needed inventory. Overall, sales volumes are average (past 10+ years) and for detached homes, are about 50% less than a couple years ago.
Okotoks continues to thrive and grow. Rural acreage properties are very popular and are looking great with all the recent rain.
What’s your home worth and are you thinking of making a change ? Call me to discuss and make a plan. If you are thinking of selling over the next couple years, now is a great time to have me come by to take summertime pictures to save for the future. There is no cost for me to do this for you.
