MARKET UPDATE FOR CALGARY REAL ESTATE IN JULY 2024
Keen readers will notice that we have switched the overall label for our market from "heavy seller's market" to "seller's market". Even keener readers will notice that we have done this prematurely (we should wait until there are more than 2.5 months of inventory). The bet is, that momentum will push us the rest of the way there in the coming few months.
What is happening?
Rates have fallen, therefore, you would expect more demand. Right? Right, but not necessarily right away. We do believe that locals are gearing up to "move up" into the higher price ranges, but, the urgency isn't there because of the direction rates are traveling (down) combined with now stable (ish) prices north of around $850,000 (depending on your location).
We also believe that rates are having another effect - reducing the incentive (push) for Ontarians, British Columbians, and international migrants to come here instead of staying in (or going to), Ontario & BC.
The last 3 years have seen a large increase in rental rates, which has pulled in investors. That rent growth slowed earlier in the year, and price growth this month was 0-1% for most property types, as sellers get used to having (some) competition for once.
Anecdotally, we have been receiving marginally more calls from potential sellers, and, moderately fewer calls from people buying. Incidentally, most of my buyer clients, at this time, are homeowners purchasing 1 or 2 investment properties, often in central Calgary.
What isn't happening?
The market is not balanced, and, unlike our local board, we don't believe it will balance this year. We expect the housing shortage to persist, and prices to continue growing, albeit more modestly. There will be some expired listings a month or two from now. By the way, we're always looking to pick up those expired listings if you know anyone looking to sell!