The Calgary housing market in 2024 is proving to be a dynamic environment, with implications that are significant for homeowners. Understanding these trends is crucial for anyone looking to navigate this market effectively.
Economic and Market Trends
The Calgary housing market has been influenced by broader economic trends, especially those related to monetary policies. These policies have had a direct impact on mortgage rates and home affordability. For instance, the Bank of Canada's decisions in the preceding years, such as increasing interest rates to manage inflation, had a cooling effect on the market. However, with the pause in rate hikes in early 2023 and subsequent fluctuations, the market saw a resurgence. Calgary, in particular, benefits from a more stable market foundation compared to other regions, largely due to its avoidance of a pandemic-induced housing bubble and relatively steady growth.
Market Projections for 2024
The Calgary Real Estate Board (CREB) offers valuable insights into the market's direction in 2024. An overall price growth of around 6.5% is projected for the residential sector. The apartment segment is likely to experience even stronger growth, potentially around 9%. The market saw a rise in the benchmark home price to $556,975, and this trend of price growth is expected to continue.
Detached Housing and Condo Market Trends
In the detached housing segment, the market exhibits mixed signals. While the higher-priced segment shows some weakness, especially around the $800k range, the lower-priced segment remains robust with a high absorption rate. A price appreciation of 5-15% in the first quarter of 2024 is a realistic prospect for detached homes in Calgary.
The condo market in Calgary is experiencing rapid price growth, attracting local and out-of-province investors and new immigrants. Despite this, challenges such as rising condo fees are impacting buyers' purchasing power and potentially capping the prices of certain complexes.
Supply, Demand, and New Construction
Calgary's housing market continues to be influenced by supply and demand dynamics. High migration to the city and a supply level that struggles to keep pace is a critical factor. This mismatch contributes to the continued seller's market conditions. The new construction segment is also seeing price increases due to tight labor and supply markets, rising material costs, and federal government initiatives. These factors are collectively diminishing affordable housing options, as single-family dwellings are increasingly replaced by high-end multifamily units.
Impact on Homeowners
For homeowners in Calgary, this market presents both opportunities and challenges. Those looking to sell might find favorable conditions due to high demand and limited supply. However, potential buyers face challenges due to rising prices and affordability issues. It's a market scenario where strategic planning and informed decision-making become crucial for both selling and buying properties.
The Calgary housing market in 2024 is complex and multifaceted. Homeowners and potential buyers must stay informed and perhaps seek professional guidance to navigate this market effectively. For more insights and detailed analysis, visiting real estate websites like getcalgaryrealty.com can provide further valuable information.
