As 2024 progresses, the real estate market in Calgary has been marked by significant activity and a dynamic landscape. The Calgary Real Estate Board (CREB) provides valuable insights into these trends, highlighting the evolving conditions and opportunities for both buyers and sellers in the city. This blog post will delve into the key trends, factors driving the market, and what to expect for the remainder of the year.
Key Trends in 2024
Market Stability and Steady Growth: The Calgary real estate market has shown remarkable stability in the first half of 2024. According to CREB, both the residential and commercial sectors have experienced steady growth. Despite global economic uncertainties, Calgary's market has demonstrated resilience, largely driven by a robust local economy and steady population growth.
Increased Home Prices: Home prices in Calgary have seen a notable increase this year. CREB data indicates that the average residential price has risen by approximately 5% compared to the same period in 2023. This price surge is attributed to a combination of limited housing supply, strong demand, and rising construction costs. The average price of a detached home in Calgary now stands at around $585,000, highlighting the competitive nature of the market.
Surge in Condo Sales: Condominiums have become increasingly popular among buyers in Calgary. Sales in the condo market have surged by over 15% year-to-date, with prices appreciating accordingly. The affordability of condos, compared to detached homes, has made them an attractive option for first-time buyers and investors alike. Areas such as the Beltline and Eau Claire have witnessed the highest activity, driven by their proximity to downtown and vibrant amenities.
Shift Toward Suburban Living: While urban areas remain popular, there has been a noticeable shift toward suburban living. Many buyers are opting for properties in suburban communities like Airdrie, Okotoks, and Cochrane, seeking larger homes and more space. This trend is fueled by the desire for more affordable housing options and the increasing acceptance of remote work, which has reduced the need to live near the city center.
Rental Market Resilience: The rental market in Calgary has also demonstrated resilience in 2024. Vacancy rates have remained low, and rental prices have seen a modest increase. The demand for rental properties is fueled by population growth and a growing number of individuals moving to Calgary for work and education. This trend is particularly pronounced in neighborhoods like Beltline and Kensington, where rental units are in high demand.
Factors Driving the Market
Economic Recovery: Calgary's economy has shown signs of recovery, supported by strength in sectors such as energy, technology, and healthcare. This economic upturn has boosted consumer confidence and spurred real estate activity. The job market has also improved, attracting new residents and increasing the demand for housing.
Interest Rates and Financing: Despite global concerns about rising interest rates, Canada’s central bank has maintained relatively stable rates. This has kept mortgage rates affordable, encouraging more buyers to enter the market. Additionally, various government programs and incentives for first-time homebuyers have further stimulated demand.
Population Growth: Calgary continues to attract new residents, both from other parts of Canada and internationally. The city's high quality of life, combined with economic opportunities, makes it an appealing destination. This influx of residents has heightened the demand for housing, particularly in areas with good schools and amenities.
Supply Constraints: One of the critical challenges facing Calgary's real estate market is the limited housing supply. New construction has not kept pace with the growing demand, leading to a tight inventory of available homes. This supply-demand imbalance has contributed to the rising home prices and competitive market conditions.
Market Outlook for the Rest of 2024
The remainder of 2024 is expected to see continued activity in Calgary's real estate market. While home prices are likely to stabilize, the demand for both residential and commercial properties is anticipated to remain robust. Buyers can expect a competitive market, particularly for affordable housing options and condos. Sellers are in a favorable position, with the potential for strong returns on their investments.
For prospective buyers, it is crucial to act swiftly and be prepared for bidding wars, especially in high-demand areas. For sellers, this is an opportune time to consider listing properties, taking advantage of the current market dynamics.
Overall, Calgary's real estate market in 2024 reflects a city in transition, with a balanced blend of opportunity and challenge. Whether you are looking to buy, sell, or invest, staying informed about the latest trends and data from CREB will be key to making successful real estate decisions in this vibrant and evolving market.