Calgary's Booming Real Estate Market: April 2024 Market Update

Dated: April 5 2024

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Calgary's real estate market is currently experiencing unprecedented growth, with March conditions mirroring those last seen in 2006. This surge in activity coincides with high levels of interprovincial migration, reminiscent of trends observed nearly two decades ago. However, while Calgary remains a hot spot for those looking to enter Canada's housing market, escalating prices and dwindling inventory present significant challenges for prospective buyers.

Inventory levels have plummeted across properties priced below $1,000,000, with the most dramatic declines observed in homes below $500,000. March saw inventory levels drop to 2,532 units, marking a 22% decrease compared to the previous year and signaling a significant shortage in available properties, particularly for more affordable options.

In March, the unadjusted total residential benchmark price surged to $597,600, representing a two per cent increase from the previous month and an impressive 11% jump from last year. This upward trajectory in prices extends across all property types, with row and apartment-style homes experiencing the most substantial year-over-year gains. As a result, breaking into Calgary's housing market is becoming increasingly challenging for many prospective buyers.

According to the Calgary Real Estate Board (CREB), house sales in March surged by 10% compared to the same period last year, highlighting the overwhelming demand for homes in the city. However, this surge in demand is not met with a proportional increase in listings, leading to a strain on available inventory.

The sales-to-new listings ratio soared to 84% in March, a level not seen in nearly two decades. This imbalance between supply and demand continues to favor sellers, driving up home prices and creating a fiercely competitive market environment.

Furthermore, Calgary is entering its third consecutive year of a seller's market, fueled by a two-year spike in migration that has intensified demand while diminishing re-sale and rental supply. Given the time required for supply adjustments, it's no surprise that home prices continue to climb, exerting upward pressure on the market.

The surge in prices has spurred an exceptional resale and investor market, with house flipping reaching unprecedented heights. Bank of Canada data reveals that 6.5% of homes sold in the Calgary metropolitan area were resold within 12 months, marking the highest level observed among major Canadian cities since 2014.

In conclusion, Calgary's real estate market is booming, characterized by soaring prices, dwindling inventory, and intense competition among buyers. As the market continues to favor sellers, navigating the buying process requires careful planning and strategic decision-making. Whether you're a prospective buyer, seller, or investor, understanding the dynamics of Calgary's housing market is crucial for making informed decisions in this rapidly evolving landscape.Whether you're considering buying or selling property in Calgary, Alberta, we're here to assist you every step of the way. Don't hesitate to reach out – we're eager to lend our expertise and support to your real estate journey.

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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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