Greater Calgary's Blog     Local Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

 

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June 5, 2024

Calgary Real Estate Market Update: May 2024 Sales Stats

MAY SALES STATS 2024

 

Implications for the Detached Sector

 

Shift in Sales Dynamics: The decline in year-over-year sales, especially in lower price ranges, indicates a shift towards higher-priced homes. This suggests a possible affordability issue for buyers looking in lower price brackets.

 

Rising Inventory in Higher Price Ranges: The increase in new listings and the subsequent drop in the sales-to-new-listings ratio to 68% support inventory growth, particularly in higher price ranges. This could lead to more options for buyers with higher budgets but may also signal a slowing demand in this segment.

 

Tight Supply for Affordable Homes: The continued fall in inventory levels for homes priced below $600,000, accounting for only 13% of the detached market, highlights a significant supply shortage in the affordable segment. This exacerbates affordability challenges and limits options for first-time buyers and those with lower budgets.

 

Seller's Market Conditions: With just over one month of supply, the detached market remains a seller's market. This favors sellers, leading to faster sales and potentially multiple offers on properties, particularly in the lower price ranges.

 

Price Appreciation: The rise in the unadjusted benchmark price to $761,800, with a 13% year-over-year increase, indicates strong price appreciation across the detached sector. This trend reflects high demand relative to supply, especially in more affordable districts.

 

Broad-Based Price Gains: The improvement in prices across all districts, with the most significant gains in the most affordable districts, suggests a broad-based demand for detached homes. Buyers are likely stretching their budgets to secure homes, driving up prices even in typically less expensive areas.

 

In summary, the detached sector is experiencing a seller's market with rising prices and tight supply, especially in the affordable segment. Buyers face challenges with affordability and limited options, while sellers benefit from favorable market conditions and price appreciation.

 

Implications for the Semi-Detached Sector

 

Sales Growth: Despite a year-over-year decline in recent sales, year-to-date sales have increased by nearly 11%, indicating overall strong performance and demand in the semi-detached sector.

 

Increased New Listings: Similar to the detached sector, the semi-detached sector has seen an improvement in new listings, leading to a drop in the sales-to-new-listings ratio to 72%. This indicates a more balanced market with slight inventory growth.

 

Seller's Market: With just one month of supply, the semi-detached market remains a seller's market. This tight supply means that sellers have an advantage, with properties likely selling quickly and potentially receiving multiple offers.

 

Rising Prices: The benchmark price for semi-detached homes reached $678,000 in May, which is over 1% higher than the previous month and 13% higher than last May. This indicates strong price appreciation due to ongoing high demand and limited supply.

 

Market Conditions: Persistently tight market conditions continue to drive up prices, suggesting that the demand for semi-detached homes is robust, and buyers are willing to pay higher prices to secure these properties.

 

In summary, the semi-detached sector is experiencing strong year-to-date sales growth, slight inventory gains, and tight supply conditions that favor sellers. Prices continue to rise due to high demand and limited availability, making it a competitive market for buyers.




Implications for the Row Sector

 

Sales Increase: May reported 540 sales, contributing to a 16% year-to-date rise, indicating strong and growing demand in the row sector.

 

Increased New Listings: The rise in new listings has helped support gains in inventory levels, providing more options for buyers despite the overall tight market conditions.

 

Inventory Distribution: While inventory levels have declined for properties priced below $400,000, increases in higher-priced row properties have contributed to overall inventory gains. This suggests that more expensive row properties are becoming more available, while affordable options remain scarce.

 

Seller's Market: With a sales-to-new-listings ratio of 78% and less than one month of supply, the row market continues to favor sellers. These conditions indicate high competition among buyers and quick turnover of available properties.

 

Price Growth: The benchmark price reached $462,500 in May, nearly 2% higher than the previous month and over 19% higher than last year. This significant price growth reflects strong demand and limited supply, pushing prices up rapidly.

 

In summary, the row sector is experiencing robust sales growth, increasing new listings, and overall inventory gains primarily in higher-priced properties. The market remains highly competitive, favoring sellers, and driving significant price increases. Buyers face challenges with affordability and limited supply in the lower price ranges.




Implications for the Apartment Condominium Sector

 

Strong Sales Growth: Demand for affordable homes is driving significant growth in apartment condominium sales. May sales continued to rise, contributing to a 19% year-to-date increase, marking a record high for this period.

 

New Listings and Inventory: Gains in new listings have helped stabilize inventory levels, preventing further declines. While overall inventory remains similar to last year, increases in properties priced over $300,000 have offset significant decreases in lower-priced homes.

 

Seller's Market Conditions: With just over one month of supply, the market remains in favor of sellers. This tight supply condition results in quick property turnovers and high competition among buyers.

 

Price Increases: Prices continue to rise compared to both last month and the previous year. Year-over-year price gains are particularly notable in the North East and East districts, exceeding 30%, while the City Centre experienced the lowest price growth at 13%.

 

In summary, the apartment condominium sector is experiencing robust demand, particularly for affordable homes, leading to record-high sales growth. New listings have helped maintain inventory levels, but the market remains tight, favoring sellers. This strong demand and limited supply are driving substantial price increases, especially in certain districts.

March 1, 2024

Calgary Real Estate Market Update: February 2024 Insights

 

High demand coupled with low inventory continues to drive significant price gains in Calgary's real estate market, particularly in February.

 

Despite a rise in new listings to 2,711 units, sales surged by nearly 23 percent compared to the previous year, totaling 2,135 units. This surge in sales, fueled by increased new listings, maintained an exceptionally high sales-to-new listings ratio of 79 percent, ensuring inventories remained near historic lows. As a result, the months of supply fell to just over one month, nearing the tight levels seen during last spring.

 

Ann-Marie Lurie, Chief Economist at CREB®, noted, "Purchasers are acting quickly when new supply comes onto the market, preventing inventory growth. It is this strong demand and low supply that continues to drive price gains in Calgary." Notably, the most significant supply challenge is for homes priced under $500,000, with inventories falling by 31 percent compared to the previous February.

 

In February, the unadjusted detached benchmark price reached $585,000, marking a gain of over two percent compared to the previous month and over 10 percent higher than the same period last year. The East district experienced the highest year-over-year price growth at 25 percent, while the City Centre reported the slowest price growth at under five percent.

 

For detached properties, although new listings improved to 1,195 units, sales rose by 20 percent year-over-year to 954 units, predominantly in the higher price range of over $600,000. Tight market conditions drove the unadjusted detached benchmark price to $721,300, nearly three percent higher than the previous month and over 13 percent higher than last February.

 

Semi-detached properties saw a brief rise in listings compared to sales, with 223 new listings met by 191 sales, resulting in an 86 percent sales-to-new-listings ratio. This prevented significant changes to the low inventory situation, leading to a monthly gain of over two percent in the unadjusted benchmark price, reaching $639,100.

 

Row properties witnessed a rise in new listings to 457 units, contributing to strong price growth with the unadjusted detached price reaching $436,500, over two percent higher than the previous month and nearly 19 percent higher than last February.

 

In the apartment condominium segment, sales reached 638 units in February, with the unadjusted benchmark price rising to $329,600, marking a 17 percent gain over last February. Despite a seasonal uptick in inventory levels, the market continued to favor sellers with just over one month of supply.

 

Regionally, Airdrie, Cochrane, and Okotoks all experienced similar trends of improved new listings but continued low inventory levels, contributing to significant price gains in their respective markets.

 

Overall, the combination of low inventory levels and high demand continues to put upward pressure on home prices in Calgary and its surrounding regions.

 

Information gathered from CREB. 

Market Report for February 2024

Jan. 25, 2024

If Interest Rates Go Down?: Navigating Market Dynamics in Real Estate

Supply and DemandIncreased Affordability: Lower interest rates make borrowing cheaper, and this increased affordability often stimulates demand for real estate. In a city like Calgary, where household incomes are high, the combination of lower interest rates and robust incomes could prompt more individuals and families to consider buying homes.

 

Buying Frenzy: If the perception in the market is that lower interest rates are creating a favorable environment for buyers, it could trigger a buying frenzy. Buyers may be motivated to enter the market quickly to take advantage of lower borrowing costs and secure properties before prices rise further.

 

Supply and Demand Dynamics: If the demand surges due to a buying frenzy, and the supply remains tight, this could lead to upward pressure on home prices. In a situation where demand outstrips supply, sellers may be in a strong position to negotiate higher prices.

 

Competition among Buyers: A heightened demand for properties could lead to increased competition among buyers, potentially resulting in bidding wars. This competitive environment tends to drive prices higher.

 

Impact on Affordability: While lower interest rates can make borrowing more affordable, the rapid increase in demand and prices may counteract this effect. It's essential to consider how the overall impact on affordability will unfold in the local market.

 

Potential Policy Responses: In the face of a sharp increase in prices and concerns about housing affordability, there might be policy responses from local authorities or regulatory bodies. This could include measures to cool the market or address affordability challenges.

 

As Greater Calgary Real Estate professionals in Calgary, we closely monitor market trends, we stay informed about potential policy changes, and we will provide guidance to our clients helping navigate these cricial dynamics. 

 

 

Bank of Canada holds rates steady with talks shifting to timing of cuts - RBC

Jan. 24, 2024

Calgary Real Estate 2024 Forecast: Anticipated 6.5% Rise in House Prices Despite Supply Challenges

Forecast 2024 Report

 

House prices will be on the rise forecasting a 6.5% increase, with supply challenges ahead. 

"Chief Economist Ann-Marie Lurie underscores this dynamic, stating, "Despite higher rates, 2023 was a year of relatively strong sales thanks to a robust labour market and strong migration. The challenge was limited supply, especially for low-priced homes with the strongest demand. This resulted in significant price growth with the largest gains in our lowest-priced homes.”

 

As the report looks ahead to 2024, Lurie anticipates another strong year for sales, stating, "We expect potential buyers, who were on the sidelines due to limited supply choices, to re-enter the market as lending rates ease and listings improve. At the same time, interprovincial migration and a healthy labour market should continue to support stronger sales activity.”

 

Supply remains an issue this year, but gains in new home starts and new listings are expected to support some modest gains.

 

“Conditions are not expected to be as tight as in 2023," Lurie said, "but supply growth takes time, and sellers’ market conditions are expected to persist through the spring, driving further price growth in 2024.”

 

Supply growth is anticipated to be driven mainly by upper price ranges, decelerating the pace of price growth for higher-priced properties. Meanwhile, lower-priced properties are expected to face continued tight conditions, contributing to sustained price gains." Calgary Real Estate Board

 

Download CREB Forecast 2024

Jan. 2, 2024

Calgary Real Estate 2023: Navigating Trends, Challenges, and Triumphs

🏡 Calgary's 2023 Real Estate Landscape: A Year in Review 📊

As we bid farewell to 2023, lets reflect on the dynamic trends that shaped Calgary's real estate market. Despite challenges such as higher lending rates and persistent inventory constraints, the year witnessed noteworthy shifts and resilient performances across various property types.

The year began with a total of 27,416 sales, a slight ease from the previous year's peak. However, levels remained significantly higher than long-term trends, showcasing the market's robustness post-pandemic. Interestingly, there was a notable shift towards more affordable apartment-style condominiums, indicating changing consumer preferences.

 

Market Dynamics and Influencers:

"Higher lending rates dampened housing demand this year, but thanks to strong migration levels, housing demand remained relatively strong, especially for affordable options in our market," noted CREB® Chief Economist Ann-Marie Lurie. The juxtaposition of strong demand and low supply levels contributed to unexpectedly robust price growth throughout the year.

 

Property Type Insights:

Detached Homes:

The detached market experienced an annual decline of nearly 20%, particularly in lower price ranges. Limited supply choices prompted consumers to explore alternative housing styles. Despite the challenges, the persistently tight market conditions supported a benchmark price rise of nearly eight percent in 2023.

 

Semi-Detached Homes:

Similar to the detached sector, year-over-year sales for semi-detached homes declined by 10%. This decline, driven by pullbacks in lower-priced homes, did not hinder price growth, which rose by seven percent on an annual basis.

 

Row Homes:

Limited supply choices in lower price ranges contributed to an 11% decline in annual sales for row homes. Seller-favored conditions throughout the year led to an annual benchmark price gain of over 13%, with varying growth rates across districts.

 

Apartment Condominiums:

Apartment-style properties stood out as the only property type reporting a gain in sales, reaching a record high of 7,884. Despite tightening conditions favoring sellers, the 2023 benchmark price rose by over 13%, surpassing the previous 2014 high.

 

Regional Market Facts:

 

Airdrie:

Sales in Airdrie declined by 24% primarily due to pullbacks in detached homes. Despite low inventory levels, seller-favored conditions drove a benchmark price rise of nearly five percent.

 

Cochrane:

Both sales and new listings in Cochrane fell, impacting inventory levels. Despite recent gains in new listings, conditions remain relatively tight, driving a four percent increase in detached benchmark prices.

 

Okotoks:

Challenges in supply affected Okotoks, impacting sales and prices. Despite recent improvements in new listings, inventories remained near record lows, with prices rising over six percent annually.

 

All information taken from the Calgary Real Estate Board (CREB) For more insight, please refer to https://www.creb.com/News/CREBNow/2024/January/Strong_migration_and_low_supply_drive_Calgary_housing_prices_in_2023/

 

#CalgaryRealEstate #YearInReview #MarketTrends2023 #Homeownership #CalgaryHousing #RealEstateInsights

Jan. 2, 2024

Celebrating a Year of Excellence with Our Top Performing Agents in 2023

In celebrating our company's top performers of 2023, I am immensely proud to highlight their exceptional achievements in navigating the challenging real estate landscape. Faced with higher lending rates, persistent inventory constraints, and record-high prices, our top-performing agents demonstrated unparalleled resilience and adaptability. Their ability to not only sustain but enhance housing demand, particularly for affordable options, speaks volumes about their dedication and expertise. In a market where achieving success required overcoming substantial obstacles, our top performers shone brightly, showcasing the unique value they bring to our team. Their success, even in the face of challenges like high-interest rates and a growing population, is a testament to their strategic prowess and unwavering commitment to delivering outstanding results for our clients. Congratulations to our top performers for embodying excellence in every aspect of their work!

 

Jan. 2, 2024

Navigating Success in a Challenging Market: December 2023 Top Performing Agents

December Top AgentAs we reflect on the outstanding accomplishments of our top-producing agents for December 2023, it's evident that their dedication and expertise have set them apart in a challenging real estate landscape. Despite the impact of higher lending rates and persistent inventory constraints, these exceptional individuals have excelled, surpassing expectations and achieving remarkable success. In a month where the market faced record-high prices and increased population, our top producers showcased their ability to navigate complexities and deliver exceptional results for their clients. Their commitment to excellence and resilience in the face of adversity truly distinguish them as leaders in our industry. Congratulations to our top-producing agents for December 2023—your achievements are a testament to your unwavering commitment and skill in the ever-evolving real estate landscape.

 

Dec. 28, 2023

A Calgarian's Oasis: Glenbow Ranch Provincial Park

Glenbow Ranch p1Glenbow Ranch p4

Glenbow Ranch p5

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🌲 Let me spill the beans on one of my favorite hideaways just beyond our bustling city – Glenbow Ranch Provincial Park. It's not just a park; it's my get out of the city oasis, and I'm excited to share why.

 

When life gets hectic in the city, I escape to Glenbow Ranch. The trails here are like nature's symphony, weaving through meadows, along the Bow River, and offering breathtaking views of the Rockies. It's my go-to for a recharge.

 

Whether I'm up for an intense or leisurely walk, Glenbow Ranch delivers. The variety of trails means I can switch it up depending on my mood. Wildflowers in spring, shades of gold in fall – every season paints a new picture.

 

Did you know this place has a rich history? Glaciers used to cover the area. From Indigenous cultures to pioneer stories, Glenbow Ranch is like a time capsule. Exploring it feels like connecting with our roots, right in our backyard.

 

Spotting deer, catching glimpses of coyotes, and birdwatching – Glenbow Ranch is a haven for wildlife enthusiasts like me. It's a reminder that even in our urban lives, nature is thriving just a short drive away.

 

Weekends are for family time, and Glenbow Ranch is family-approved. Picnics, wildlife spotting competitions, and maybe a bit of geocaching – there's something for everyone. It's become our go-to family spot.

 

Glenbow Ranch isn't just about nature; it's a learning experience. I've joined their programs to understand the flora, fauna, and efforts to keep our surroundings pristine. Knowledge and fresh air – a winning combo!

 

If you haven't explored Glenbow Ranch yet, you're missing out. It's not just a park; it's a sanctuary that speaks to the Calgarian soul. Lace up those walking shoes and discover the magic just a short drive away.

 

Dec. 28, 2023

Unlocking Homeownership: Calgary's Path to Affordable Living

Unlocking Homeownership: Calgary's Path to Affordable Living

Home Ownership

In the ever-rising rental market of Calgary, the dream of homeownership is becoming a beacon of financial stability. Let's delve into the current state of the rental market, explore the economics of homeownership, and discover how it can be more than just a dwelling—it's an investment in your future.

 

 

 

The Rental Market vs. Homeownership

The rental market in Calgary is reaching new heights, with 1-bedroom apartments averaging $1,736 and 2-bedroom units at $2,108. These escalating costs pose challenges for long-term financial planning, making it crucial to explore alternative solutions.

 

The Economics of Homeownership

Breaking down the costs, let's consider a 1-bedroom property keeping the costs the same as renting as described above. With a 10% down payment, a 25-year mortgage at 5.7%, property taxes at $200/month, and home insurance at $110/month, the monthly mortgage payment becomes not just affordable but a smart financial move.

 

One-Bedroom Scenario:

 

Without Condo Fee:

Property Price: $300,000

Down Payment: 10%

Loan Term: 25 years

Interest Rate: 5.7% annually (0.475% monthly)

Property Taxes: $200/month

Home Insurance: $110/month

Monthly Mortgage Payment: $1,736

 

Without Condo Fee: Approximately $74,285.71 annually

 

With Condo Fee:

Condo Fee: $429/month

Monthly Mortgage Payment: $2,165 (Including Condo Fee)

Income Requirements:

 

With Condo Fee: Approximately $118,482.86 annually

 

Two-Bedroom Scenario: Let’s do the same for a two bedroom. 

 

Without Condo Fee:

Property Price: $300,000

Down Payment: 10%

Loan Term: 25 years

Interest Rate: 5.7% annually (0.475% monthly)

Property Taxes: $200/month

Home Insurance: $110/month

Monthly Mortgage Payment: $2,108

 

Without Condo Fee: Approximately $90,342.86 annually

 

With Condo Fee:

Condo Fee: $429/month

Monthly Mortgage Payment: $2,537 (Including Condo Fee)

Income Requirements:

 

: Approximately $122,691.43 annually

 

Please note that these calculations are based on the specified assumptions. The Advantage of Building Equity

Beyond affordability, homeownership is an investment in your future. Building equity over time and potential property value appreciation contribute to financial stability that renting can't offer.

 

Making Homeownership Accessible

To make this dream a reality, explore specific properties in Calgary that align with your financial goals. Discover financing options, down payment assistance programs, and resources tailored for first-time homebuyers.

 

In the Calgary area available as of this writing there are approx. 100 condos available suiting the criteria I have written about. Home Ownership is within reach!



In a city where the rental market seems to know no bounds, homeownership emerges as a beacon of financial hope. Beyond the walls of a house, it's a strategic move for long-term financial health. Explore the available properties, consider the benefits, and step into a future where your home is truly your investment.

 

Ready to make the leap into affordable homeownership? Reach out for personalized assistance, property tours, or more information. Your dream of homeownership  is within reach.

Dec. 20, 2023

Crafting Your Dream Home: A Guide to Seamless Construction

building a home

The cost breakdown for building a home in Alberta can vary based on several factors, including the size and style of the home, location, materials used, and labor costs. Additionally, factors such as permits, fees, and landscaping can contribute to the overall cost.

Here's a general breakdown of the costs involved in building a home:

 

Land Acquisition:

Cost of purchasing the land.

 

Pre-Construction Costs:

Architectural and Design Fees: Cost for designing the home.

Engineering Fees: Structural, mechanical, and electrical engineering.

Permit Fees: Costs associated with obtaining necessary permits.

 

Site Preparation:

Demolition/Excavation: Clearing the land and preparing the site.

Grading and Drainage: Ensuring proper water drainage.

 

Foundation:

Foundation Excavation and Pouring: Digging and pouring the foundation.

 

Construction Costs:

Frame Construction: Building the structure of the home.

Roofing: Materials and labor for the roof.

Windows and Doors: Cost of installation.

Siding: Exterior finishing material.

Interior Finishes: Drywall, paint, flooring, trim, etc.

Cabinetry and Countertops: Kitchen and bathroom installations.

Plumbing and Fixtures: Installation of plumbing systems and fixtures.

Electrical Wiring and Fixtures: Installation of electrical systems and fixtures.

HVAC Systems: Heating, ventilation, and air conditioning.

 

Utilities Installation:

Water and Sewer Connections: Connecting to municipal services.

Gas and Electrical Connections: Bringing utilities to the home.

 

Landscaping:

Sodding or Seeding: Establishing the lawn.

Trees and Plants: Landscaping elements.

 

Exterior Features:

Driveway: Construction of a driveway.

Fencing: Installation of fences.

Miscellaneous Costs:

Contingency Fund: Unforeseen expenses.

Insurance: Construction and liability insurance.

Construction Loan (if using a larger builder, this may not be required): Carrying costs for a construction loan refer to the ongoing expenses that the borrower incurs while the construction of the home is underway. These costs typically include interest on the loan, property taxes, insurance, and possibly other expenses. Here's a breakdown of how carrying costs for a construction loan are handled:

Interest on the Loan: 

  • During Construction: The borrower is usually required to make interest-only payments on the construction loan during the build phase. This interest accrues based on the amount of the loan that has been drawn.

 

Property Taxes:

  • Assessment Period: The property may be assessed for taxes during the construction period, even if the home is not yet complete.
  • Payment: The borrower may need to pay property taxes on the land during the construction phase.

Insurance:

  • Builder's Risk Insurance: This type of insurance covers the property during construction, protecting against risks like fire, theft, or vandalism.
  • Liability Insurance: The borrower may also need liability insurance during construction.

Loan Draw Process:

  • Scheduled Draws: Construction loans are often disbursed in stages, known as draws, as different phases of the construction are completed.
  • Inspections: Before each draw, the lender may conduct inspections to ensure that the work has been completed as specified.

Loan Conversion:

  • Conversion to Permanent Loan: Once the construction is complete, the construction loan may be converted into a permanent mortgage.
  • Amortization: At this point, the borrower begins making regular principal and interest payments on the entire loan amount.

Contingency Funds:

  • Reserve for Unforeseen Costs: Borrowers may set aside contingency funds to cover unexpected expenses that may arise during construction.

It's crucial for borrowers to work closely with their lender to understand the terms of the construction loan, including how interest is calculated, the draw schedule, and how carrying costs are managed. Additionally, having a detailed budget and financial plan for the construction project helps in estimating and managing these costs effectively.

Keep in mind that the specific terms and processes can vary among lenders, so it's important to review the loan agreement and discuss any questions or concerns with the lender and possibly a financial advisor or construction professional.

 

Builder's Profit and Overhead:

Compensation for the builder's services and business overhead.

 

Remember that these are general categories, and the actual costs within each category can vary. It's recommended to work closely with a builder, architect, or construction professional to get accurate estimates tailored to your specific project and location. Additionally, regional factors, market conditions, and material costs can influence the overall cost of building a home.