April 2024 continues upward trend in home prices for the Calgary and Area Region

Apartment sales are the big storey for April 2024. Sales of affordable and downsizing properties have done very well recently. All categories of homes saw an uptick in pricing with sales to listings ratios still favoring sellers in the Foothills region. There are some headwinds to consider though as we move into the summer months and the remainder of 2024. New construction starts are up over 50% in Alberta year over year which will add some much needed product to the real estate market. See Graph. The resale price curves show some possibility of the upward pressure on price slowing down with more moderate gains to be expected throughout the rest of the year. Total resale volumes are still down 50% from 2022 which means that overall many buyers and sellers are sitting on the fence and not buying or selling right now. Interest rates need to come down to get many of the potential buyers out there to commit and for many sellers to be able to afford to sell and buy something else. With a bit of luck, the timing of hopeful interest rate reduction will coincide with all the new home product being completed and coming on stream. More new homes being built correlates to an increase in the number of resale homes available.

Looking to buy or sell or simply want to chat about the market, give me a call, text or email.

APRIL 2024 IS ON PACE TO EXCEED 2023 FOR HOME SALES VOLUMES IN THE CALGARY REGION

Interesting stats for April thus far: Calgary has only 961 detached homes for sale. With a total of 1,201 sold or conditionally sold so far this month. Only 641 Actively for sale under $1mil with 1,040 sold or conditionally sold.

In Okotoks, we have 46 detached homes for sale with 38 sold or conditionally sold so far. This time last year for the first 22 days of April had 32 sales in Okotoks. Calgary is up 30% for April 2004 in detached home sales volumes and Okotoks is up 18% in sales volume from last year. (Assuming the CS deals become firm sales).

YTD Calgary is up 18% and Okotoks is up 15%. All indicators point to a strong spring market once the wind dies down.

Home ownership choices and lifestyles are changing in the Calgary region!

Home ownership has changed in the past 5 years in Calgary and area. Townhome sales have increased to make up 17% of all sales. A wide variety of people are buying townhomes today as it is a good choice for first time buyers, those that wish to downsize and also those trying to reduce costs. Builders are coming up with a variety of great new floor plans to suit all types of buyers, be it empty nesters, professional individuals or young families. In the first quarter (Q1) of 2024 detached homes made up 44% of sales whereas 5 years ago 61% of Calgary residents could afford a detached home, Townhome ownership went from 13%  to 17% of all buyers and apartments made up a whopping 30% compared to just 15% 5 years ago. Apartment living is actually the big story with the average price only increasing from $285,000 5 years ago to $337,000 today. Whereas Townhomes have increased from $300,000 to $465,000. Increased costs to live today have forced many to make some big lifestyle changes. However, it's all relative. Calgary is still a very affordable big Canadian city to live in. Be thankful a newer duplex or townhome isn't costing you $1 to 2 million+ like in Vancouver or Toronto.

If you are looking at buying or selling, be it new or preowned, make sure to contact me as I can help you navigate the world of the resale environment and also new home builder sales and make sure you get the best location and value possible.

Your new home awaits.