Welcome to a new year filled with promises and possibilities in Calgary’s real estate market! As 2024 progresses, the Calgary Real Estate Board has unveiled its forecast, providing a roadmap for what lies ahead. In this blog post, we’ll break down the key insights from the forecast, exploring the dynamics that will shape the real estate landscape in Calgary, Alberta, for both homeowners and investors.
There will be a Seller’s Market Phenomenon
January 2024 has already seen an impressive surge in sales, up by over 42% compared to the same period in 2023. The buzzword for the better half of 2024 in Calgary’s real estate scene is undoubtedly “seller’s market.” The forecast sets a tone of optimism, predicting a robust market with sellers holding a considerable advantage.
There’s a Persistent Challenge of Low Inventory
Despite the positive outlook, the challenge of low inventory persists. International and interprovincial migration, a significant driver of the low inventory, is expected to slow in 2024. However, the projection indicates that migration will remain strong enough to support housing demand, resulting in continued supply pressure and an upward price trajectory.
Population Growth Dynamics will Play A Role
Calgary’s 2024 population growth is forecasted at 3.6%, a slight dip from the previous year. Notably, the city continues to play a pivotal role in the province’s overall population increase, accounting for nearly half of the growth. This influx of residents strains the housing supply, sustaining high demand and influencing market dynamics.
Upsizing and Downsizing Trends Are Expected
As homeowners with mortgages set for renewal in 2024 consider their options, the market may witness both upsizing and downsizing trends. Some may opt to downsize, contributing to increased inventory, particularly in lower-priced properties. Simultaneously, a more predictable interest rate landscape could lead others to explore upsizing, meeting the needs of growing families.
There will be a Move Towards a Balanced Market
While a seller’s market is expected to dominate most of 2024, the forecast provides a glimpse of change in the wind. The Calgary Real Estate Board predicts a potential shift towards a balanced market in the year’s second half, signaling a gradual easing of demand. This transition could introduce a more balanced and nuanced real estate landscape.
FAQ’s:
1. What is a Seller’s market?
This situation is when heightened demand (for homes) sets the stage for a market where sellers have an advantageous negotiation position.
2. What Challenges persist with Low Inventory, and how is Migration contributing to it?
Low inventory remains a challenge primarily due to international and interprovincial migration. Although migration levels are expected to slow in 2024, the influx of residents is anticipated to continue supporting housing demand. This sustained demand on Calgary’s real estate market keeps pressure on supply, resulting in constrained inventory and upward pressure on prices.
3. How does Calgary’s Population growth affect the real estate market?
Calgary’s forecasted population growth of 3.6% is a key factor influencing the real estate market. The city has been a significant contributor to the province’s population growth, accounting for nearly half of the increase. This influx of residents intensifies the demand for housing, contributing to the current market dynamics.
4. What are the Effects of Upsizing and Downsizing Trends among homeowners in 2024?
In 2024, homeowners with mortgages set for renewal might contribute to increased inventory by considering downsizing, particularly into lower-priced properties. Simultaneously, a predictable interest rate landscape may prompt others to upsize, catering to the needs of growing families. These contrasting trends could impact the market’s higher and lower price points.
5. When will there be a Balanced Market and what factors contribute to this prediction?
While a seller’s market is anticipated for most of the year, the forecast suggests a potential shift toward a balanced market in the second half of 2024. Factors contributing to this prediction include the gradual easing of demand. As the year progresses, the Calgary real estate market is expected to move towards equilibrium, providing a more balanced environment for buyers and sellers.
Conclusion
As we navigate the intricate terrain of Calgary’s real estate market in 2024, being well-prepared is key. Consulting with a trusted real estate professional cannot be overstated for those contemplating a home purchase. Investors can use this Calgary Real Estate Market’s comprehensive forecast to make informed decisions in this dynamic market.
If you’re ready to explore current homes available for purchase, contact us today. We’re building new homes in Calgary, and we’d be happy to discuss current and upcoming projects. Secure your dream property with us and confidently start your real estate journey in the year ahead. Here’s to a successful and fulfilling 2024 in Calgary’s real estate market!
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