I hope this message finds you well and you had an amazing summer! I am reaching out with a comprehensive update on the Calgary residential real estate market for the second quarter of 2023.
Calgary's real estate market continues to be a seller's market due to persistently low inventory and sustained high demand. While the market may feel somewhat repetitive as we eagerly await increased supply, there's no immediate sign of inventory balancing. Across all sectors, we are witnessing consistent growth in property values, which we expect to continue throughout the latter half of the year.
The Bank of Canada raised its target rate twice in the first quarter, resulting in a policy rate of 5%. We await the September 6th announcement to gauge the impact of inflation. Importantly, Alberta saw a significant influx of migrants in Q1, with 35,932 international migrants and 15,786 interprovincial migrants. This population growth is a key factor contributing to the current low housing inventory. The rental market is equally tight, with rental rates surging by 16.9% year-over-year. Alberta is experiencing a thriving economy.
Q2 saw remarkable activity in the luxury market, with 503 homes selling for over a million dollars. This figure significantly surpasses Q1's 271 transactions. Much of this activity can be attributed to interprovincial net migrants from Ontario and BC. The highest sale price in Q2 reached $4,800,000.00, once again in the coveted Elbow Park community along the Elbow River.
- The Detached market remains robust, with a 5.84% increase in value since Q1. However, with the months of supply at 1.07 (a balanced market is at 3.5 months), prices are expected to continue on this trend until we observe inventory balance.
- Semi-Detached sales also performed well, with a 5.73% gain in value and only 1.05 months of supply.
- Row housing reached new heights, boasting the strongest increase in value at 6.91% and an inventory of just 0.85 months of supply.
- Condominiums followed closely with a 6.31% increase in value and the highest year-over-year increase at an impressive 11.15%. Although the condo market still has the most supply, it stands at only 1.35 months.
Calgary's real estate market remains red-hot, and without an influx of inventory or new housing starts, we anticipate values will continue to rise. The challenge for buyers is not whether they can sell their homes but what homes they will be able to purchase. In this market, buyers often find themselves in multiple-offer scenarios for correctly priced properties. Understanding market values and navigating these situations is paramount to secure winning offers in a market with limited supply.For sellers, strategic planning is essential.
Marketing, advertising, and pricing homes correctly are key to achieving the best price and terms. With the market witnessing steady value gains, if you're curious about your home's current market value, please don't hesitate to reach out directly, and I'll gladly provide a comprehensive evaluation.
I look forward to advising you on the second half of this year as we continue to navigate the dynamic Calgary real estate market.
Whether I am selling a client's home or buying a new one, understanding how to navigate in all sectors of the market is key to my success in helping clients achieve their real estate goals.
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