Calgary Real Estate in 2024: Market Trends and Our Predictions
Happy New Year!!
Wish everyone has a Prosperous and Healthy 2024!!
Today I would like to review the Calgary Real Estate Market in the last 2 years and forecast 2024!
Calgary's Real Estate market was strong in the last 2 years especially in 2023 when other cities in Canada were affected by the increase in the interest rates, house prices were dropping, and only Calgary kept on rising throughout the year.
Total Residential Benchmark price was $516,200 in Dec 2022, and finished at the end of 2023 at $570,100, 10.4% increase.
If we look closer to different type of properties, their increases are much higher.
Single family home Benchmark price is now $697,400, 12.8% increase from one year ago.
Semi-detached home Benchmark price is now $627,100, 12% increase from one year ago.
Townhouse or Rowhouse style home Benchmark price is now $425,100, 20% increase from 2022.
Apartment Benchmark price is now $321,400, 19.1% increase from 2022.
If we combine 2 years increase in Calgary Real Estate market price, the percentage is very substantial.
Single family home 19.6% Semi-detached home 21.2%
Townhouse style home 34.4% Apartment 28.3%
We will ask what caused this substantial increase?
Supply and Demand?
Low increase rates in 2022?
But why the increase was even more in 2023 when the interest rates were much higher compared to 2 to 3 years ago?
Reasons for Calgary's strong market
- Shortage of supplies
- High demand for housing by new immigrants
- More people migrating to Calgary from other provinces
Throughout 2023, the inventory level maintained less than 2 months' supply, and with the strong demand for housing, despite the high-interest rates, we still experienced a tight market supply and competition in the marketplace to drive the price higher.
Also, we noticed the demand for Townhouses and Apartments are much stronger this year because their prices are still affordable to many newcomers who may not be able to afford single-family homes.
Overall, Calgary's real estate prices are still lower than other major cities, like Toronto and Vancouver, and attract many people to move here. The ability to work from home, and certain types of job opportunities like transportation, IT, and consulting type of career, that make Calgary an attractive place to call home.
New Immigrants from Hong Kong, India, and Middle Eastern countries find Calgary an affordable city to start their new lives and also find Calgary a nice city with many outdoor activities for their children, such as hockey, skating, and skiing that they may not have experienced before.
Forecast for 2024
Calgary will maintain a strong and steady market, and with the interest rates slowly coming down, that will help many buyers who are ready to buy their first homes.
With the policy not to allow foreigners to buy in Canada since Jan 2023, but relaxed in few months later to allow work visa people to buy. We expect many people holding student visas who will start working this year, will be eligible to buy soon.
This year, the Townhouses and Apartments will be in strong demand. The downtown Apartments have been at a low price point for many years and will recover better this year. If you are an Investor, you may consider buying the downtown Apartments vs the newer areas when the downtown prices are still considered low.
Overall market price will be on a slow rise in the 1st quarter and will have a steady growth of 8 - 10% throughout the year.
I have been selling Real Estate in Calgary for 33 years, and I opened my brokerage Jessica Chan Real Estate & Management (JCRE) at the end of 2022. I’m proud to share with you that in our first year (2023), we sold over 225 transactions, and ranked as the Top #3 Selling team in Calgary. We have a lot of experience and knowledge to help your real estate needs.
If you are thinking of buying and selling Real Estate, please contact us by leaving your comment below or call us directly at 403-241-9800.