Calgary Sellers Market - March 2024 Market Update

Dated: March 22 2024

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As Calgary realtors, we have observed firsthand the dynamic nature of the city's real estate market. In this competitive environment, buyers face significant challenges due to low listing levels. Many buyers have been compelled to explore more affordable segments, due to the interest rates, further intensifying competition. As a result, we have noted homes priced under $700k are particularly sought after, often attracting multiple offers and selling above list price. Even million-dollar properties are moving fast due to the limited supply.

For sellers, the current market presents an optimal opportunity to capitalize on favorable conditions. With strategic pricing and effective marketing strategies, we have successfully facilitated quick sales, ensuring our clients receive top dollar for their properties.

Lets dig into some of the statistics.

Supply Shortage Fuels Price Surge

A persistent lack of supply in the Calgary housing market continues to exert upward pressure on home prices. In February, the benchmark home price surged by 10.3% year-over-year and 2.2% monthly, reaching a substantial $585,000. This significant increase underscores the growing demand for homes amidst limited inventory.

Strong Sales Activity

Despite the supply constraints, Calgary witnessed robust sales activity, with 2,135 homes changing hands in February 2024. This figure represents a remarkable 23% increase compared to the same period last year. The surge in home sales reflects the enduring appeal of the Calgary real estate market.

Inventory Challenges Persist

Amidst heightened demand, inventory levels remained constrained, declining by 14% year-over-year to 2,355 units. Currently, Calgary's housing market is characterized by a mere 1.1 months of home sales, emphasizing the scarcity of available properties for prospective buyers.

Affordability Concerns

While Calgary offers comparatively more affordable housing options than major Canadian cities like Toronto and Vancouver, affordability concerns persist. Over the past four years, rising prices have led to a decline in affordability, posing challenges for renters and prospective homeowners alike. Addressing these affordability issues is crucial for sustaining economic growth and ensuring Calgary remains an attractive destination for residents.

Economic Dynamics and Migration Trends

Calgary's strong job market and relatively affordable housing market have contributed to interprovincial migration toward Alberta. As a key player in the energy sector, often dubbed the "Energy Capital of Canada," Calgary's economy and housing market are closely tied to fluctuations in oil prices. Despite economic uncertainties, Alberta's housing market has remained resilient, offering more affordability compared to Ontario and British Columbia.

In conclusion, we are reaffirmed that Calgary's position as a dynamic and sought-after real estate market. With supply shortages driving prices higher and affordability concerns on the rise, navigating the housing landscape requires careful consideration and strategic planning. Whether you're a buyer, seller, or investor, staying informed about market trends is essential for making informed decisions. If you're considering buying, selling, or investing in Calgary's real estate market, we're here to help. Contact us today for expert guidance and personalized assistance tailored to your unique needs and goals.

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Kowall Boutique Real Estate

Daniel Kowall and Tali Kowall (Kowall Boutique Real Estate) are a real estate team with EXP Realty in Calgary AB, Canada. They dedicate their time to helping people wanting to live or living in Calgar....

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