Description

A summary from CREB's Chief Economist, Ann-Marie from October 15, 2024 about the shift in this Fall Market.

• Buyers Waiting for Rate Drops: Many buyers are holding off, waiting for interest rates to decrease—similar to how people wait for Black Friday sales.

• Interprovincial Migration Boosting Market: There's a strong influx of people moving to Calgary from other parts of Alberta, supporting housing demand.

• Impact of International Migration on Rentals: International migration is affecting the rental market first. Average rent in August 2024 was $2,049, a 2% decrease from August 2023.

• Price Trends:

  • Prices have risen since late 2020 and generally stayed elevated.
  • Spring 2024 saw strong growth, likely a seasonal trend.
  • Market conditions are not balanced yet but are shifting away from extreme seller-favorable conditions.

• Spring Market Highlights:

  • In Spring 2024, 70% of homes sold over list price, compared to a normal rate of 10%.
  • Conditions are gradually normalizing, but balance will take several months (aiming for 3.5-4 months on market).

• Overall Market:

  • Despite some price drops, they don’t erase prior gains.
  • There is still strong demand, especially in the lower price range, which remains a seller’s market.
  • The market is transitioning towards more stability but is not fully balanced yet.