Navigating Calgary's Luxury Real Estate Market in 2024: Trends, Forecasts, and Opportunities
As we step into 2024, the Calgary real estate market continues to evolve, offering unique opportunities for buyers and investors. In this blog, we'll delve into the latest market trends, economic indicators, and forecasts that are shaping Calgary's luxury housing market.
Market Overview and Key Trends
In January 2024, Calgary's real estate market demonstrated robust growth, particularly in the detached homes segment. The benchmark price of a detached home increased significantly, indicating a healthy market trajectory. Additionally, the sales of semi-detached homes have shown an upward trend, reflecting a strong demand in this sector.
Average House Price:
As of February 2024, the average house price in Calgary stands at $576,560. This figure reflects recent sales data and provides insight into the overall market health.
New Listings:
Over the last 28 days, there have been 3,699 new listings in Calgary. This influx of properties contributes to the dynamic real estate landscape.
Days on Market:
The median days a home spends on the market is currently 0 days. This rapid turnover indicates strong demand and efficient sales processes.
Price Changes:
From January 6 to February 3, 2024, the average sold price increased by 6.9%.
Quarterly, there was a 6% rise, and yearly, a substantial 14% increase in prices.
Property Types:
Detached homes, townhouses, and condos all contribute to the market.
For instance, a 3-bedroom detached home saw an increase of 13% in average price, reaching $589,000.
Inventory and Sales:
There were 1,715 homes sold in the last 28 days.
The inventory includes various property types, with condos and townhouses showing significant activity.
source:https://www.zolo.ca/calgary-real-estate/trends
Economic Indicators Influencing Housing Demand
The Calgary housing market is closely intertwined with Alberta's economic conditions. Key factors such as labor market strength, wage growth, and population increase play a pivotal role in driving housing demand. Despite some fluctuations, the overall economic environment continues to support the real estate market.
Oil Prices: Calgary's economy and housing market are deeply linked to the energy sector, particularly oil prices. Historically, higher oil prices led to economic booms and increased housing demand, while lower prices triggered downturns and dampened demand.
Diversification Efforts: Recent efforts to diversify Calgary's economy beyond oil might lessen the direct impact of price fluctuations on housing demand.
Migration and Affordability:
Migration: Compared to other major Canadian cities, Calgary offers lower living costs and job opportunities, potentially attracting new residents and boosting demand.
Affordability: While still more affordable than other cities, Calgary's housing market experienced significant price increases in recent years. Rising interest rates and economic uncertainty could affect affordability and impact demand, particularly in lower-priced segments.
Local Market Dynamics:
Job Market: Calgary's job market remains relatively strong, especially in tech and logistics, potentially fueling demand for housing.
Neighborhood Differences: Housing demand and price trends can vary significantly across different neighborhoods within Calgary, influenced by factors like proximity to amenities, school districts, and job opportunities.
Additional Factors:
Climate Change: Increasing awareness and potential regulatory requirements related to climate change could influence demand for energy-efficient and sustainable housing options.
Housing Affordability in Calgary
When compared with other major Canadian cities, Calgary stands out for its relatively affordable housing options. The average home prices in Calgary are more accessible than in cities like Vancouver and Toronto, making it an attractive market for buyers seeking value for money.
Positives:
Relative affordability: Compared to other major Canadian cities, Calgary offers generally lower housing costs, making it attractive to some buyers.
Wage growth: While not keeping pace with recent housing price increases, Calgary's average incomes have grown, offering some support for affordability.
Government initiatives: Provincial schemes like the Alberta Real Estate Transfer Tax exemption for first-time buyers can aid specific segments.
Challenges:
Recent price surge: The past few years saw significant housing price increases, outpacing income growth and straining affordability for many.
Rising interest rates: Increasing rates make mortgages more expensive, further reducing affordability for potential buyers.
Income disparity: Lower-income households and vulnerable populations struggle the most with soaring housing costs, facing the risk of displacement.
Supply imbalance: Limited housing supply, particularly in lower-priced segments, maintains upward pressure on prices and exacerbates affordability challenges.
Detached Housing Market Trends
The detached housing market in Calgary shows signs of a robust market. With an absorption rate consistently above 70%, this sector remains vibrant. The market is experiencing mixed signals in different price segments, with the lower price range being particularly active.
Average Detached Home Price:
As of January 2024, the average price for detached homes in Calgary is $758,957. This reflects a 13% yearly growth and a 3.4% monthly increase compared to last year.
Semi-Detached Homes:
Semi-detached homes have also seen positive trends. The average price increased by 14.5% year-over-year, reaching $667,778.
Townhouses:
Townhouses are in demand, with an average price of $439,159. This represents an 18% increase compared to January 2023 and a 5% rise from December 2023.
Market Condition:
The current market condition in Calgary is a seller’s market, with a SNLR (Sales-to-New-Listings Ratio) of 77%. An SNLR above 60% indicates a market favoring sellers.
Overall Trends:
The average home price in Calgary for January 2024 was $569,361, which is 11% higher than last January’s average sales price and 5.4% higher than the previous month’s.
Townhome and Apartment Market Insights
The condo market in Calgary is witnessing rapid growth, attracting local and out-of-province investors, as well as new immigrants. However, challenges such as rising condo fees are impacting buyer's purchasing power, especially in certain complexes.
New Construction Housing Prices
The new construction segment in Calgary's housing market is facing a sharp increase in prices. This trend is driven by factors like labor market tightness, rising material costs, and federal green initiatives. It's essential for buyers to factor in these trends when considering new constructions.
Calgary Housing Market Forecast for 2024
Looking ahead, the Calgary housing market is expected to continue its upward trend in price appreciation.
Seller's Market Continuation: The real estate market in Calgary is expected to remain a seller's market in 2024, with demand outpacing supply, leading to competitive conditions for buyers.
Price Growth: Forecasts suggest that home prices in Calgary are likely to continue rising, with an estimated increase of around 6.5% in 2024. This upward trend in prices reflects the ongoing demand for properties in the region.
Low Inventory and High Prices: The persisting low inventory levels and rising housing prices are anticipated to continue throughout 2024, posing challenges for buyers looking to enter the market.
Economic Factors: Calgary's real estate market is influenced by various economic factors, including job opportunities, population growth, and economic stability, which contribute to the overall market forecast for the year.
By considering these factors and trends, individuals looking to buy or sell property in Calgary in 2024 should be prepared for a competitive market with increasing prices and limited inventory.
Sources:Calgary home prices to rise 6.5% in a seller's market: CREB 2024
Calgary's rising housing prices, low inventory likely to persist in 2024: CREB
Conclusion
The Calgary luxury real estate market in 2024 presents a landscape filled with opportunities and challenges. By staying informed about the latest market trends, economic indicators, and forecasts, buyers and sellers can make well-informed decisions in this dynamic market.
As we navigate the diverse and dynamic landscape of Calgary's luxury real estate market in 2024, the opportunities for both buyers and sellers are abundant. Staying informed and making well-thought-out decisions are key to capitalizing on these opportunities. Whether you're looking to invest in the thriving condo market, eyeing a detached home, or considering new constructions, understanding the current market trends and forecasts is crucial.
For personalized assistance and expert guidance in navigating the Calgary luxury real estate market, reach out to Diane Richardson, a seasoned Calgary realtor known for her expertise and dedication. Diane's deep understanding of the market dynamics, coupled with her commitment to client satisfaction, makes her an invaluable resource for your real estate journey.
Contact Diane Richardson at 403.397.3706 for a consultation tailored to your unique real estate needs, and take the first step towards making your Calgary real estate goals a reality.