The housing market in Calgary is “flaming” red-hot as demand continues to outpace supply in one of the country’s fastest-growing cities.
According to the most recent report from Royal LePage, the aggregate price of a home in YYC increased a whopping 7.9% over last year, reaching $694,600 in the second quarter of this year.
When you break it down by housing type, the median price of a single-family detached home rose 8.3% over last year to $797,200, while the median condominium price increased 8.6% to $273,600 in the same period.
It’s no wonder why people have been flocking to our neighbours up north, with the aggregate price of a home in Edmonton sitting at $450,600.
“Sales activity remains strong in Calgary, with many homebuyers competing for properties in multiple-offer scenarios. The June interest rate cut, however, did not add fuel to the already red-hot market. So far, the long-awaited rate drop has only really benefited variable-rate mortgage holders, who are now seeing some relief on their monthly mortgage payments,” says Corinne Lyall, broker and owner at Royal LePage Benchmark.
“Inventory has seen some recent growth, but not enough to keep up with current demand levels. Attached and row homes, which are appealing property types for those who can’t get on the single-family detached property ladder, are popular among entry-level buyer hopefuls. Consistently, there has been approximately one month’s worth of supply available for all property types.”
Sales are expected to dip a little over the summer, as is usual for the season before picking back up again in the fall.
“In the months ahead, we should see a gradual slowdown as consumers take a break for the summer, before activity picks up in the fall again. The late third quarter and fourth quarter of this year could be particularly strong for sales if interest rates continue to decline. My hope, however, is that rate cuts will roll out gradually so that supply levels have enough time to be replenished ahead of rising buyer demand.”
Prices are expected to skyrocket again towards the end of the year.
Royal LePage forecasts that the aggregate price of a home in Calgary will increase by 8% in the fourth quarter of 2024 compared to the same quarter last year.