Welcome to Real Estate Compass, your go-to source for insights into the Calgary real estate market. Today, we dive deep into the intricacies of interest rates, the Calgary Real Estate Board forecast, and the opportunities that lie within the market.
*Interest Rates and Economic Forecast:*
- In recent media coverage, economists are predicting minimal to no growth in Canada for 2024. However, Calgary stands out as a beacon of resilience due to its thriving economy. The energy sector plays a crucial role in insulating Alberta, and despite inflation and high lending rates, the province is anticipated to outperform others in terms of growth.
- Take note when consuming news; amidst the doom and gloom, Calgary's economic strength remains a stabilizing force.
- Stay tuned for the upcoming rate announcement on March 6th, a pivotal moment that can impact the real estate landscape.
*Real Estate Market Outlook:*
- Growth is expected to persist through the spring but is set to decelerate. For sellers, Q1 presents a prime opportunity to list, as prices are projected to stabilize.
- More mortgages set to renew in 2024 will entice hesitant sellers into the market, capitalizing on increased home prices. This influx will lead to increased activity in the new home sector, ultimately rendering sale prices more stable.
- Expect persistent growth in the 500-600k range, providing an advantageous window for those looking to upgrade their properties. Higher-priced properties are predicted to stabilize, creating an excellent move-up opportunity.
*Long-Term Rate Forecast:*
- A long-term outlook reveals a gradual reduction in interest rates, incrementally reaching 4% by Q4 2024.
- The absence of a substantial increase in unemployment rates contributes to the sustained overall housing market stability in YYC for 2024.
*Rental Market Dynamics:*
- An influx of migrants to YYC has increased demand on housing, attracting both investors and renters to seek resale homes.
- Despite record levels of housing starts, the bottleneck lies in development permits at the city level.
