Mortgage interest rate hikes are creating hot demand for detached homes under $600,000, and affordable apartments, duplexes and townhouses in the Calgary region. Calgary January sales are as folllows: Detached homes under $600,000, Inventory of 949 with 866 sales in Jan (hot demand!). Over $600,000 saw 339 sales with 995 currently for sale (slower demand). The bell weather $1mil+ market (a market confidence indicator) remains healthy with 57 sales out of 287 for sale. Note: this is double 2018/19 levels but down from the peak of early 2022 :: Townhouses, Inventory 209 with sales of 209. :: Apartments, inventory of 600 with sales of 318.
In Okotoks, detached homes under $600,000 were desirable with 10 sales in Jan 2023 with only 8 for sale as of Feb 6th. (Sales down 150% from Jan 2022). The over $600,000 market is very slow with only 4 sales out of 21 currently for sale. This market segment is seeing downward pressure on price after big gains over the past couple years. Apartment/townhouse sales are strong with less than 1 months inventory. Prices are creeping up for apartments/townhouses and are finally reaching pricing levels from 15 years ago. This is a good market segment to consider from a value stand point and potential for price gains over the next year or two.
After massive sales and price gains over the past 2+ years, rural property sales in the Foothills region have slowed dramatically. There are 51 acreage homes for sale over $1million and there was only 2 sales in Jan 2023. There are 23 acreage lots for sale under 5 acres and only 1 sold in Jan. The hot market segment for rural is the under $850,000 home. There are only 4 for sale in the whole county and there were 4 sales in Jan 2023.
As we move towards the spring market over the next couple months, I predict the high cost of mortgage renewals will start to take their toll and we will see more inventory come on the market with affordability driving home ownership decisions. 2023 will likely be the year of the downsize after two years of people upsizing their homes during covid.
