MARKET UPDATE FOR CALGARY REAL ESTATE IN JULY 2024
In October, inventory levels (the ratio of active listings to sales) stabilized, finishing slightly within the seller's market range, but we would describe the market as balanced for now.
New listings remain high—about 44% above the 5-year average—while sales are also above long-term trends. Nationally, falling interest rates are now starting to drive demand, with Calgary following this trend.
Market consistency is evident across areas and property types. In most segments, values have softened modestly over the past 3-4 months. Even at higher price points above $900,000, where listings outnumber sales, significant declines haven't occurred.
Regionally, Cochrane and Airdrie are tracking Calgary’s market behavior, whereas Okotoks still shows seller’s market characteristics, likely due to its focus on affordable detached homes versus other property types (e.g., condos and luxury homes).
We’ve started many seller and buyer files recently, indicating that market activity may soon increase. It’s a good time to start planning for next year, as many clients are weighing their options for listing or buying either now or in the new year.
Policymakers are expected to reduce rates over the next few months, especially before the “mortgage cliff” in summer 2025 when low-rate 5-year COVID mortgages are due for renewal. The December reintroduction of 30-year amortizations and an increase in the CMHC cap from $1M to $1.5M could further affect affordability, particularly in Calgary, while possibly reducing the influx from higher-cost areas like Toronto and Vancouver.
Despite the national housing shortage, Calgary is adding significant condo and rental apartment supply. However, uncertainty around immigration policies remains.
In summary, as listing rates level out and demand rebounds next year, we anticipate a quick shift that could lead to price growth. With the current inventory bordering between a balanced and seller’s market, we generally advise buyers to act sooner and sellers to wait if they’re undecided.
For tailored advice on your situation, please reach out.