Calgary sales/pricing of detached homes peaked in May 2022. Interest rate hikes, world events, cost of new home construction and the price of energy have played a significant role in cooling our local real estate market. A limited supply of homes available for sale is helping to minimize price corrections being seen in other areas of Canada. However, local values are down 5-10% from the May/June 2022 peak.
Apartment sales and pricing suffered during the covid years and are now the one bright spot in Calgary for real estate ownership and investment. We went through a period of upsizing and now are entering a period of downsizing for some as people re-evaluate their lifestyles post covid.
Work from home is still very prevalent and will likely remain a factor in home purchases moving forward for approximately 30% of the workforce.
Okotoks: 32 detached homes sold in Oct 2022 with current for sale inventory remaining very low at 50 units. Oct 2021 saw 48 sales, Oct 2020 - 53 sales. 2019-2015 saw between 30-33 sales per year in Oct. The key market factor however which will limit a drastic price correction as seen in 2008 and 2015 is inventory levels. During the pre-covid years, inventory was around 150-175 homes at this time of year and we only have 50 right now.
Acreage properties are still in demand but are also seeing some price reduction pressures.
So, hang onto your hat, this winter will be a bumpy ride until the markets sort themselves out. Just remember, if you buy and sell in the same market it is all relative. Also, if you bought pre-2020, what your home is worth today is all relative. I have a saying and that is “You can’t lose what you don’t have” and that is the value of what your home would have been worth in the spring of 2022.
