The leaves might be falling, but Calgary's real estate market is still heating up! With October marking a strong month in home sales, there's much to talk about. Let’s break down the scene in each property type, explore the impact of the Bank of Canada’s recent rate cut, and get a glimpse of what might come next for Calgary’s ever-evolving market.
A Tale of Two Markets: High-Priced vs. Low-Priced Homes
Calgary’s market has a bit of a split personality these days. Homes priced above $600,000 are seeing more listings and sales, helping balance inventory and easing some of the buying frenzy at the upper end. But if you’re looking for something on the lower end of the price scale, you might still be caught in a bidding war! For properties under $700,000, demand remains high with less than two months’ worth of inventory, creating what’s often known as a *seller’s paradise*.
So, why are lower-priced homes still flying off the shelves? Part of the issue is a lack of supply in that segment. While Calgary’s total inventory has improved—jumping from 3,205 units last October to nearly 5,000 this year—half of these listings are priced over $600,000. Buyers with more modest budgets are left with fewer options, keeping the competition fierce.
Bank of Canada’s Rate Cut: A Game Changer?
The Bank of Canada recently dialed down its overnight rate to 3.75%, and buyers, sellers, and economists alike are watching closely. With inflation still a major concern, any drop in interest rates can affect mortgage payments and purchasing power. While it's too early to call, a rate reduction could fuel even more demand, especially in the middle to lower-priced segments of Calgary’s market. If further cuts happen in the coming months, we might see even more buyers jumping in, hoping to take advantage of these improved rates.
Breaking It Down: What’s Happening in Each Property Type?
Detached Homes
Detached homes made a strong showing in October with over 1,000 sales, a bump up from both last month and last year. Inventory for detached homes remains low, with just around two months of supply in this category, meaning sellers are still in control. The unadjusted benchmark price for detached homes inched down slightly to $753,900 due to seasonal shifts, yet prices are up a solid 8% compared to last year.
Semi-Detached
Semi-detached properties are doing their best to balance out, but for now, it’s still a seller’s world here. Inventory is creeping up, especially in higher price ranges, so buyers might get a bit of relief. With October’s benchmark price of $677,000, semi-detached homes are riding a steady wave, showing an 8% year-over-year increase.
Row Housing
Row housing has hit a bit of a supply snag. October sales were mostly concentrated in the higher price ranges, while the more budget-friendly options have all but disappeared. Although the unadjusted benchmark price for row housing fell slightly in October, it still remains over 8% higher than last year at $456,600, with year-to-date prices averaging a nearly 16% increase. With demand still outpacing supply, don’t expect prices to cool down too much here anytime soon.
Apartments
Apartment condominiums saw a little dip, marking the fifth consecutive month of year-over-year sales declines. However, compared to historical averages, condo sales are holding strong, fueled by high rents and limited options in lower-priced properties. The benchmark price for apartments sits at $341,700, up 11% from last year despite a minor seasonal adjustment last month.
A Look Beyond Calgary: Regional Rundown
- Airdrie: Thanks to a slight dip in new listings, Airdrie is moving toward balanced conditions, with prices still up 5% from last year.
- Cochrane: Cochrane is on fire! Sales are above long-term trends, and with new listings at a record high for October, it’s on track for more balanced market conditions.
- Okotoks: Okotoks is holding steady with a hot seller’s market. Prices here remain resilient, up 6% year-over-year.
So, What’s the Forecast?
If the Bank of Canada continues to ease rates, Calgary’s housing market could stay dynamic, with demand in the lower-to-mid range intensifying. High-end properties may continue to see a more balanced pace, giving buyers more breathing room. But with low-priced inventory still tight, first-time buyers and those looking for more affordable options might face further challenges as they search for their ideal home.
In a nutshell, we’re in for an exciting ride. While high-priced homes are settling into more balanced conditions, demand for entry and mid-level properties keeps Calgary’s real estate market firmly in seller’s territory. Hold on tight—there might be more twists to come!