Buying a House in Calgary?: A Guide to the Current Real Estate Market in August 2023

Are you looking to buy a house in Calgary? The real estate market in the city has been experiencing significant growth and high demand, making it a competitive landscape for homebuyers. In this comprehensive analysis, we will delve into the current state of the real estate market in Calgary, providing you with up-to-date statistics, critical news reports, and valuable insights to help you navigate the process of buying a house. Whether you're a first-time homebuyer, an average resident, or an investor, this article aims to provide you with the information you need to make informed decisions.

Understanding the Calgary Housing Market

The Strong Performance of the Calgary Housing Market

In July, the Calgary Real Estate Board (CREB) reported the seventh consecutive monthly gain in home prices, reflecting the strongest July levels ever recorded. With 2,647 sales, representing an 18% year-over-year gain, the housing market in Calgary has shown resilience and continues to attract buyers. The apartment condominium sector has seen significant gains, contributing to the overall growth in the market.

Seller's Market: Low Inventory and High Demand

The Calgary housing market remains a seller's market, with inventory levels near record lows. In July, there were only 1,720 units available, the lowest ever reported for July. This low inventory, coupled with continued migration to the province and relative affordability, has contributed to the strong demand for housing in Calgary. However, the limited supply has resulted in upward pressure on home prices.

Rising Home Prices

The unadjusted total residential benchmark price in Calgary reached $567,700 in July, marking the seventh consecutive monthly gain. Prices are now over 4% higher than the previous peak in May of 2022. The significant increase in home prices reflects the high demand and limited supply in the market.

Overview of Real Estate Statistics in July

House Prices and Sales

In July, Calgary's housing market saw a substantial increase in prices, with the seventh consecutive monthly gain. The unadjusted total residential benchmark price reached $567,700, marking a 4% increase compared to the previous peak in May 2022. Additionally, there were 2,647 sales, representing an 18% year-over-year gain and the strongest July levels reported on record.

Sales and Listings

In July, there were 2,647 sales and 1,587 new listings reported in Calgary. This represents a year-over-year gain of 18% in sales and a slight decrease in new listings compared to the previous year. The strong sales numbers indicate the continued interest in the Calgary housing market.

Detached Homes and Semi-Detached Homes

Inventory levels for detached homes have been trending up over the past month. In July, there were 1,197 sales and 1,587 new listings for detached homes. The sales-to-new-listings ratio for semi-detached homes remained high, surpassing 85% once again. The North East and East districts experienced the strongest monthly gains in housing prices, while the City Centre district remained stable.

Apartment Condominium Sector

One significant contributor to the record-setting pace of the Calgary housing market was the apartment condominium sector. Sales in this sector continued to rise, with year-to-date sales 16% higher than the previous year. This positive trend indicates a growing demand for apartment condominiums in Calgary.

Inventory Levels

Despite the surge in demand, Calgary remains a seller's market, with inventory levels near a record low. In July, there were 1,720 units available for sale, the lowest ever reported for July. This limited supply further drives up home prices and creates competition among buyers.

Critical News Reports: Insights into the Calgary Market

Migration and Affordability

Continued migration to the province and relative affordability have contributed to the strong demand for housing in Calgary, even in the face of higher lending rates. Calgary's relative affordability compared to other cities has attracted individuals and families looking to settle in a vibrant and economically prosperous region.

Supply Challenges

One of the key factors influencing the Calgary housing market is the struggle with supply in the resale, new home, and rental markets. The limited availability of properties puts upward pressure on home prices, creating a competitive landscape for buyers. This shortage of supply highlights the need for more housing development and investment in the region.

First-Time Homebuyer Incentives

For first-time homebuyers, navigating the Calgary market can be particularly challenging. However, initiatives such as the First-Time Home Buyer Incentive Program (FTHB) aim to support individuals entering the housing market. This program provides eligible first-time homeowners with a shared equity mortgage, reducing the upfront costs associated with purchasing a home.

Analysis for the Average Homebuyer

For the average homebuyer, the current real estate market in Calgary presents both opportunities and challenges. The surge in demand and limited supply mean that buyers need to act quickly and be prepared to face competition. It is essential to have a clear understanding of your budget, preferences, and priorities to make informed decisions and secure the right property.

While increased home prices may pose affordability concerns, the relative affordability of Calgary compared to other cities in Canada is still a significant advantage. Taking advantage of low-interest rates and exploring available government programs, such as the FTHB, can help alleviate financial pressures for first-time buyers.

Analysis for the Average Resident

For the average resident of Calgary, the thriving real estate market can have both positive and negative impacts. On one hand, the increasing home prices contribute to the overall economic growth and prosperity of the city. Homeowners may see the value of their properties rise, providing them with an opportunity to build wealth.

On the other hand, rising prices can make it challenging for renters to enter the homeownership market, potentially leading to increased demand for rental properties and higher rental costs. It is crucial for residents to plan their housing needs and explore their options to ensure long-term stability and financial well-being.

Analysis for First-Time Homebuyers

First-time homebuyers in Calgary face unique challenges in a competitive market. It is essential for them to have a clear understanding of their financial situation, including their budget and affordability limits. Exploring government programs like the FTHB can provide additional support and help reduce the financial burden of homeownership.

Additionally, first-time buyers should work closely with experienced real estate professionals who can guide them through the process, provide valuable insights, and negotiate on their behalf. Conducting thorough research, visiting multiple properties, and staying informed about market trends and developments are crucial steps for first-time homebuyers to make confident and informed decisions.

Analysis for Investors

Investors looking to enter the Calgary real estate market can find attractive opportunities. The strong demand for housing, coupled with limited supply, creates a favorable environment for property investment. However, it is crucial for investors to conduct thorough research, assess the profitability of potential investments, and carefully consider market trends and future developments.

Working with experienced real estate professionals and exploring different investment strategies, such as rental properties or fix-and-flip projects, can help investors maximize their returns and navigate the complexities of the Calgary market.

Navigating the Buying Process

Buying a house in Calgary requires careful planning, preparation, and knowledge of the buying process. Here are some essential steps to guide you:

• • Determine your budget: Assess your financial situation, including your down payment, mortgage pre-approval, and closing costs. This will help you determine your budget and narrow down your options.

  • Define your preferences: Consider your needs and preferences in terms of location, property type, size, and amenities. Research different neighborhoods and assess their proximity to essential services and amenities.

  • Work with a real estate agent: Partnering with a knowledgeable real estate agent who specializes in the Calgary market is essential. They can provide expert advice, guide you through the buying process, and help you find suitable properties within your budget.

  • Research the market: Stay up to date with the latest market trends, prices, and inventory levels. This will help you make informed decisions and negotiate effectively.

  • View properties and make offers: Attend open houses, schedule private viewings, and thoroughly assess properties of interest. When you find a suitable property, work with your agent to prepare and submit a competitive offer.

  • Conduct inspections and due diligence: Once your offer is accepted, conduct inspections to assess the property's condition and identify any issues. Engage professionals such as home inspectors and lawyers to ensure a thorough due diligence process.

  • Secure financing: Finalize your mortgage financing by working with a lender or mortgage broker. Ensure you understand the terms and conditions of your mortgage agreement.

  • Close the deal: Work with your real estate agent, lawyer, and other relevant parties to complete the necessary paperwork, including the transfer of ownership. Be prepared for closing costs, such as legal fees and land transfer taxes.

The current real estate market in Calgary presents a mix of opportunities and challenges for homebuyers, residents, first-time buyers, and investors. With rising home prices, limited supply, and strong demand, it is crucial for individuals to stay informed, plan strategically, and work closely with real estate professionals.

Despite the competitive landscape, Calgary's relative affordability, government incentives, and economic growth make it an attractive market for buyers. By conducting thorough research, exploring available programs, and understanding their financial capabilities, individuals can navigate the market with confidence and secure their dream home in this thriving Canadian city.