Title: Shane'
Hey there, fellow real estate enthusiasts! It's Shane here, and I've got some exciting insights to share about the Calgary real estate market. So, let's dive right in!
Record-Breaking Sales Despite Rising Rates
Despite the recent uptick in interest rates, Calgary's real estate market is on fire. This month alone, we saw a whopping 18% year-over-year increase in sales, totalling 2,647 transactions. This performance marks the strongest July sales on record. What's driving this frenzy, you ask? Well, it's the affordable apartment condominium sector leading the charge. However, let's not ignore the fact that year-to-date sales are down by 19% compared to last year.
As expected, sales and new listings dipped a bit compared to the previous month, but don't let that fool you. Inventory levels remain incredibly low, hovering around the record low we saw back in 2006. With a sales-to-new-listings ratio of 82% and just 1.3 months of supply, it's clear that sellers are calling the shots.
Migration and Affordability
Calgary continues to attract newcomers to the province, and our relative affordability is a big draw. Despite those higher lending rates, folks are still flocking to Calgary in search of housing. But here's the catch: supply remains a challenge in the resale, new home, and rental markets. This scarcity is pushing home prices skyward.
In July, the residential benchmark price hit $567,700, marking seven consecutive months of gains. Prices now sit more than 4% higher than the previous peak in May 2022.
Who's Buying in Calgary?
Now, let's talk demographics. Until recently, the primary drivers of demand in Calgary's housing market included those looking to upsize, foreign investors eyeing investment properties, professionals who recently immigrated to Canada, and out-of-province migrants advancing their careers here.
However, things might be shifting. New legislation, including a foreign buyers' ban and an anti-flipping tax, could change the landscape. It remains to be seen how effective these measures will be. Statistics Canada reports that foreign investors make up less than 5% of homeowners in Calgary, but that number jumps when we consider properties bought by non-Alberta residents.
Investors on the Rise
Investors and multi-property owners are making their mark in Calgary's real estate scene. In 2021, they accounted for over a third of homebuyers, especially in Ontario, British Columbia, and Nova Scotia. While we don't have specific numbers for Calgary, it's safe to say that many residents from these provinces are looking for affordable real estate investments here.
Upsizing Buyers
Calgary's demand for single-family homes has been driven by buyers looking to upsize. The prices of these homes have surged, with a year-on-year increase of over 27%. Suburbs like Arbour Lake, Haysboro, Fairview, Cougar Ridge, Hillhurst, Walden, and Capitol Hill have witnessed explosive growth.
Immigration and Out-of-Province Migration
Despite the pandemic, new immigrants are still flocking to Calgary. Many residents from other provinces are also making the move to Alberta, especially to the bustling economic hub of Calgary. The federal government's plan to bring in 2 million new immigrants to Canada will likely result in more settling in Calgary.
First-Time Homebuyers
Getting a mortgage as a first-time buyer in Calgary is relatively less challenging compared to other large cities in Canada. While programs like the First-Time Home Buyer Incentive are in place to help, it's still tough due to the stress test and elevated interest rates. With the slowdown in home prices over the last year, purchasing a first home in Calgary without financial assistance remains a challenge.
That's a wrap on the current state of the Calgary real estate market, folks. Remember, the market is dynamic, so stay tuned for more updates. Happy house hunting!