Monitoring housing market trends is crucial for property investors to make informed decisions, mitigate risks, and optimize returns. At GIL, we understand the importance of staying ahead and informed when it comes to Calgary’s housing market. As such we’ve prepared a Calgary housing market forecast for 2024 to help you make informed and sound investment decisions for the year ahead. Discover how the market will affect your buying decisions this year, and how GIL can help you along the way.
Overall Market Conditions: A Cooling Trend
It’s worth briefly delving into Canada’s general housing market forecast before looking at Calgary specifically. The overall Canadian housing market is experiencing a cooling trend, with a 4.1% month-over-month decline in national home sales as of August 2023. However, despite this, there is a 5.3% year-over-year increase in sales activity, which indicates an underlying demand.
The Canadian Real Estate Association (CREA) predicted a decline in home sales in 2023 with a rebound expected in 2024. But how does this national prediction compare to Calgary specifically?
Calgary’s Current Housing Market: An Optimistic Look Ahead
Calgary emerged as Canada’s leading real estate market in 2023, despite a 12% year-over-year decrease in sales between January and October. Local realtors remain optimistic about a robust performance in 2024, especially if mortgage rates remain stable or even decrease slightly.
Calgary’s real estate resilience is attributed mainly to its buoyant economy, which is fueled by the energy sector, as well as substantial migration. Over 74% of interprovincial migrants in Q3 of 2023 came from British Columbia and Ontario, where home prices are significantly higher.
Affordability remains a top concern, with demand for single-family detached homes driving up prices to about $694,000, up 10% from the previous year. Affordable options are scarce, prompting first-time buyers to turn to condominiums with a benchmark price of approximately $309,000, up 14% year-over-year.
Calgary Housing Market Forecast for 2024
It’s hard to determine what’s going to affect the market every year, and the amount of information available is staggering, and a little bit overwhelming. Here are some key points to keep in mind when considering investing in Calgary’s housing market in 2024:
- Calgary’s housing market is forecasted to have the fastest price climb among major Canadian cities in 2024, with an expected 8% year-over-year increase.
- The aggregate home price in Calgary is projected to reach $711,612 by the end of 2024.
- Condominiums are anticipated to experience the largest price jump, projected to increase by 9.5% to $286,562 by the end of the year.
- The median price of a single-family detached home is expected to rise by 6% to reach $803,692.
- For Calgary’s rental market, it is expected to become tougher for renters as affordability decreases. Vacancies are expected to decrease, and rents are likely to rise.
In summary, the Calgary housing market forecast for 2024 is expected to see some challenges in terms of affordability, but there is some anticipation of a recovery period fueled by higher migration and economic recovery.
It’s important to stay ahead and keep closely monitoring the market trends for the most accurate and up-to-date information. GIL is here to help if you’re looking for a reputable property management company to help you stay up-to-date with the latest trends. Contact us today or request a free property management consultation and discover how we can help you stay ahead of the game in 2024!
