Calgary Property Market — Higher Rates Take a Toll — Oct 2023
The Calgary property market is currently a seller's market. This means that there is more demand for homes than there is supply, which is putting upward pressure on prices.
At the end of September, the Benchmark price of a detached single-family house in Calgary was nearly $700,000, up significantly year-over-year. The median house price has been flat for the past six months and this is an early warning sign that the benchmark price will soon plateau.
Apartments are the preferred choice for real estate investors.
Supply in the apartment market is even tighter than in the house market. Apartment prices are still rising. While the Calgary detached house market might soften soon, the condo market appears to be more resilient. This may be due to the greater affordability of apartment units.
There are a few factors that are contributing to the seller's market in Calgary. One factor is the low inventory of homes on the market. There are currently only 3,369 homes for sale in Calgary, which is a 25% decrease from last year. Across all property types, 2,441 homes were purchased in September. That active listings to purchases ratio means Calgary has roughly 1.4 months’ worth of inventory compared to 1.2 months in August. Supply is trending upward but anything below 5 months is considered a seller’s advantage.
There are a lot of people who are looking to buy homes in Calgary, including first-time homebuyers, families, and investors. The demand for homes is being driven by the city's strong economy and low cost of living.
Of the major Canadian urban centres, Calgary has the highest median income and the lowest average home price.
The seller's market in Calgary is expected to continue for the foreseeable future. However, there are some factors that could cool the market: continued high mortgage rates, a collapse in oil prices, and an increase in home listings.
If you are thinking of buying a home in Calgary, it is important to be prepared for a competitive market. You will need to be pre-approved for a mortgage and be ready to act quickly when you find a home that you want.
Here are some tips for buying a home in a seller's market:
Get pre-approved for a mortgage. This will show seller real estate agents that you are serious about buying a home and that you have the financial capacity to do so.
Be prepared to act quickly. When you find a home you want, be prepared to make an offer within a few hours of the viewing. This also means that you will want to inspect the property closely during your viewing to help ensure there are no major issues with the home’s condition.
Be willing to negotiate. In a seller's market, you may have to negotiate and compromise. You may not get all the items on your wish list.
Be patient. In a seller’s market, It may take some time to find the right home and you might have to bid on several homes before you finally lock down your home.
If you are selling a home in Calgary, you are in a good position to get a good price. However, it is important to price your home competitively to attract buyers. If people see many competing buyers at your open house or during viewings, then they are more likely to offer a price above listing value.
The Calgary property market is a seller's market, but it is still possible to buy a home. By being prepared and willing to act quickly, you can increase your chances of success.
