Home prices in the Calgary region seem to be defying predictions based on rising interest rates and general economic indicators. Sales volumes are down considerably over the past two years, interest rates have doubled, however, low supply of resale homes combined with what builders are charging for new homes is pushing up the resale market considerably. Many builders seem to be limiting supply of available lots and pre-sale builds which is creating restricted options for buyers and thus keeping prices high. This could be due to lack of skilled labour/supply chain issues or it could be market manipulation and capitalization. It is extremely important to get skilled and experienced advice before buying in today’s market!
Housing Stats for March 2023 (detached)! Calgary: Under $600k: 483 sales with 265 for sale. Hot Hot Hot! The $600-800k home: 424 sales, 401 for sale. One months inventory = sellers market. $800,000+ is a balanced market with 3 months inventory. Still good for this time of year. Okotoks: Under 600,000: 22 sales with 5 for sale (the for sale inventory is starting to creep up as I write this). Hot Hot Hot! The $600-$800,000 market saw 17 sales with 17 for sale at the end of March = Sellers market. High end market is at it’s typical pace. Rural: Very little inventory in the under $1mil mark and very little for sale within a short drive of town. The acreage market is just starting it’s spring push. It will be an interesting ride again this year.
All in all, indicators point to a good spring market with little indication we are at peak pricing. However, be careful not to overpay. Mortgage renewal and cost of financing will likely have an impact on our market at some point this year. Long term interest rates have started to drop which will help mitigate some of the impact on any downward pressure on price later this year.
