Calgary Real Estate Market: November 2024 Insights
Navigating the Shifts in Calgary's Housing Market
Explore the latest trends and statistics shaping Calgary’s real estate landscape in November 2024. Discover how market dynamics are evolving and what it means for buyers and sellers.
October 2024 Market Overview
In October 2024, Calgary’s real estate market showcased resilience with a slight increase in sales compared to the previous month. The Calgary Real Estate Board (CREB®) reported 2,174 sales, marking a 0.14% rise from October 2023. New listings surged to 3,687, the highest for October since 2008, contributing to an inventory increase to 5,064 units. Despite this growth, inventory remains below the typical 6,000 units for this time of year. The benchmark price for residential properties was $592,500, reflecting a 4.5% year-over-year increase.
Surrounding areas like Airdrie, Cochrane, and Okotoks also experienced notable changes, with inventory levels rising and benchmark prices showing year-over-year gains. The interest rate environment continues to influence buyer behavior, with the Bank of Canada’s recent rate cut to 3.75% impacting market sentiment.
Sales and Listings Dynamics
Understanding Calgary's Market Movements
Calgary’s real estate market in October 2024 saw a significant increase in new listings, reaching 3,687—the highest for this month in over a decade. This influx led to an inventory rise to 5,064 units, a substantial improvement from the spring’s low levels, though still below the long-term average of 6,000 units. This shift has created a more dynamic market environment, with increased options for buyers.
Compared to historical data, the market is gradually moving towards more balanced conditions. However, competition remains intense, particularly for properties in lower price ranges. The current interest rate environment, with the Bank of Canada’s recent reduction to 3.75%, adds another layer of complexity, influencing both buyer sentiment and market activity. Buyers and sellers are advised to stay informed and work closely with their REALTORS® to navigate these evolving conditions effectively.
Calgary's Residential Market
Price Trends Overview
In October 2024, Calgary’s real estate market showcased a slight decrease in the unadjusted benchmark price for residential properties, settling at $592,500. Despite this monthly dip, the market maintained a robust year-over-year increase of 4.5%. Detached homes witnessed an impressive growth of approximately 8%, while the apartment condominium sector experienced over 11% gains. These trends highlight the market’s resilience and the continued demand for diverse property types.
Calgary’s housing market continues to evolve, with the benchmark price reflecting both seasonal adjustments and long-term growth. The city’s dynamic real estate landscape offers opportunities for both buyers and sellers, as price trends provide insights into market stability and potential investment returns.
Regional Market Insights
Surrounding Areas Performance
In Airdrie, October 2024 saw inventory levels rise to 349 units, marking a significant improvement from previous years. With 151 sales, the months of supply increased to 2.3 months, and the benchmark price reached $551,000, nearly 7% higher than last year. Cochrane experienced 58 sales and 116 new listings, resulting in a sales-to-new listings ratio of 50%. Inventory improved to 174 units, with the benchmark price at $571,800, a 6% increase year-over-year. Okotoks reported an inventory of 106 units, with a benchmark price of $630,300, reflecting a 9% rise from last year. These figures indicate a shift towards more balanced market conditions in these areas.
Interest Rate Effects
Impact on Buyer Sentiment and Market Dynamics
In Calgary’s real estate market, buyer behavior is significantly influenced by the current interest rate environment. On October 23, 2024, the Bank of Canada made a strategic move by lowering its target overnight rate to 3.75%, continuing the shift from the previous cycle of higher rates aimed at controlling inflation.
This rate cut is part of the Bank’s efforts to stabilize the economy, with projections suggesting that inflation will return to the 2% target by 2025. The nominal neutral interest rate is expected to fall between 2.25% and 3.25%, further indicating a more accommodative monetary policy moving forward.
However, despite this reduction, many potential homebuyers remain cautious. The uncertainty surrounding future interest rate movements in 2025 has led many to adopt a “wait-and-see” approach. The Bank of Canada’s guidance and market expectations indicate that further rate cuts are likely, which has contributed to hesitation in the market.
For buyers, interest rates play a crucial role in mortgage affordability, and even minor rate fluctuations can have a big impact on their purchasing decisions. As buyers await more clarity, their purchasing choices will continue to be closely tied to predictions of future borrowing costs. This dynamic environment is shaping the market, where the timing of a decision is as important as the price and location of a property.
Navigating the Market: Buyer and Seller Tips
Strategic Advice for Buyers and Sellers in Today's Real Estate Climate
For Buyers: The recent increase in new listings, especially in higher price ranges, provides more options for prospective buyers. However, with inventory still below long-term averages, competition remains tight, particularly for more affordable properties. Buyers should be prepared to move quickly and consider getting pre-approved for financing to strengthen their position. While waiting for further rate cuts may seem tempting, it’s important to keep in mind that housing prices could rise as demand increases once rates drop. Working with a mortgage advisor to explore current options and securing pre-approval can give buyers a competitive advantage.
For Sellers: The market is slowly moving toward more balanced conditions but still leans in favor of sellers, especially in the lower price ranges where inventory is limited. To attract qualified buyers and achieve the best possible outcome, accurate pricing and effective marketing are key. Sellers should be aware that some buyers are hesitant due to uncertainties around interest rates. By pricing properties competitively and highlighting unique features, sellers can attract serious buyers who are ready to move forward despite the fluctuating rate landscape.