The landscape of Calgary's real estate in 2024 reveals a bustling market that extends beyond the traditional buy-and-sell narrative. Particularly noteworthy is the role of Apartment Real Estate Investment Trusts (REITs) in molding the housing scene, alongside a notable rise in property sales and values early in the year. This paints a comprehensive picture of the city's thriving real estate environment.

Remarkable Growth in Sales and Property Values

Kicking off with remarkable vigor, Calgary's real estate market mirrors the vigorous activity of the previous year. A nearly 38% increase in January sales across apartments, row houses, and single-family homes marks a significant start. This surge in transactions pairs with substantial hikes in property values, notably with row houses and apartments at the forefront with up to 20% and 19% increases in benchmark prices, shining a light on a market in full swing.

Rental Sector Strengthens Amid REITs’ Revenue Uplift

In this vibrant sales backdrop, Calgary’s own Boardwalk Real Estate Investment Trust, along with its peers nationwide, reports a spike in revenues in a notably tight rental market. Boardwalk’s growth, exemplified by a 13% increase in same-property net operating income, is fueled by Alberta's population swell, boosting occupancy rates and negating the need for rental incentives.

This pattern mirrors the wider industry, where the top Canadian apartment REITs enjoyed income boosts thanks to migration, inflation, and the high cost of borrowing, underscoring a trend that’s reshaping the rental market landscape.

The Double-Edged Sword of New Developments

Despite the optimistic financial outlook and the influx of investment, new apartment projects proceed with caution. Sam Kolias of Boardwalk points to the economic hurdles and extended timelines that dampen the enthusiasm for new builds, spotlighting instead the strategic focus on enhancing current holdings.

Nonetheless, the industry recognizes the imperative to contribute to the national affordable housing pool, advocating for supportive policies that could ease the path to expanding and improving the rental housing stock.

calgary real estate 2024 Market Navigation: A Spectrum of Prospects

The current climate spells a bounty for sellers, leveraging the high demand to their advantage. Conversely, buyers face a spirited market, though the promise of investing in a burgeoning city like Calgary holds long-term appeal. Renters are met with a constricted market, a direct reflection of the surging demand against a backdrop of REIT-driven revenue growth.

With a robust kickoff, Calgary's 2024 real estate market, buoyed by strategic shifts in the rental sector, showcases a sector bristling with energy and opportunity. For those looking to engage with this market, be it through buying, selling, or renting, staying abreast of market trends and seeking expert advice are crucial steps in navigating the multifaceted challenges and opportunities of Calgary’s dynamic real estate scene.

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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.

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