The first two weeks of February’s real estate market in Calgary and the surrounding areas feels like what we usually see in the spring for activity and heightened interest in the number of people looking to buy a home. Multiple offers are common place as inventory remains at historically low levels. Builders are full steam ahead trying to get new product to market. There are many factors to consider when trying to understand our current market and also trying to figure out where it is going. I’ve shined up my crystal ball and here are my predictions for the next few months: 1) We will continue to see low inventory for resale homes, apartments, row houses and duplexes in the Calgary and Foothills area until at least summer 2024. 2) Until interest rates come down or qualifying criteria changes, many people will stay put and not consider selling as they generally qualify for a much lower mortgage today than they did a couple years ago. 3) Mortgage renewals are going to be very tough on a lot of people this year. Monthly payments may become unaffordable which will force some to sell their homes or taking in roomates. This will add some much needed supply to the market 4) Rental properties will remain hard to find as investors cash out and sell. 5) The entry level price points for all property classes will continue to see upward pressure on price as demand outstrips supply. This is the hardest hit area and the type of property seeing the biggest increase in price in the past year. A home that sold for $420,000 12 months ago is now selling for $560,000. A duplex that sold for $310,000 in 2020 now sells for $550,000. And…interest rates have doubled. 6) If a person can afford to upscale their home and do a move up, now is a good time for that. The upper market has not increased as much and more options are available. For Example in the upper end for our region: For homes over $1.2mil in Calgary there are 209 for sale with 66 sales in the past 30 days. There are 10 homes for sale in Okotoks over $1mil with only one sale in the last 30 days. There are 42 acreage properties in the Foothills County priced over $1.4mil for sale with only 6 sales in the past 30 days. Move up’s to the mid market are also attractive given the equity that can be pulled out of people’s current homes.
To know more or to find out what opportunities await for you, please feel free to reach out to me as I am always happy to help navigate the real estate market and help with making plans for change in home ownership, whether it be investing, move up’s, downsizing or simply changing up your space and moving locations.
