There has been quite the run on real estate prices in our region the past few years. For the first time in a while, inventory levels are climbing which should create a balanced market very soon if this trend continues. New construction is starting to come online with some buyers now listing their homes for sale in preparation to move into new digs and this trend will only continue over the next 8-10 months. Calgary is up 53% YTD in new housing starts with June being a whopping 60% over June 2023. As mentioned in previous market updates, until new construction caught up with overall demand, we would not see any relief in house price escalation. Now, that is changing. All housing sectors look like prices peaked in June with July seeing either a flat growth in price or a slight decline. There are so many factors influencing real estate in our region and on a positive note we still have a lot of people looking to move here and interest rates look like they are going to continue to come down which will increase buy/sell movement and also help first time buyers enter into the housing market. Cautionary signs to consider are such things as a sell off and decline in the stock markets, Berkshire Hathaway selling off assets and squirrelling away $277,000,000,000 (yes, that’s how many zero’s are in $277 billion) in cash to get ready for what? Also, we have an election this fall south of the border which, like any election, creates anguish amongst the general public. BUT, as I have always, and will always say, if you are buying and selling in the same market, it is all relative. As the fall market approaches, sellers should temper expectations and not expect to sell in a day unless their home is in an extremely desirable location and also priced fair/aggressive. Buyers, you are starting to see more choice for the first time in months. However, don’t dilly dally if you find the one you want, as multiple offers were still a thing in JULY with 31% of detached homes in Calgary selling over list price and 36% of homes in Okotoks selling over list price.
