Calgary Housing Market Update and Forecast 2024: Insights and Projections

The dream of homeownership is on the horizon for many Calgarians in 2024, as the local real estate market shows promising signs of change. With the potential for rate cuts by the Bank of Canada and evolving market dynamics, prospective buyers are eyeing new opportunities to enter the market and secure their first homes.

Current Challenges and Market Dynamics:

The road to homeownership has been challenging for many due to high borrowing costs, leading to subdued activity in the latter half of the previous year. As interest rates remained elevated, potential homebuyers faced affordability constraints, contributing to a slowdown in the market. Sellers, too, hesitated to list their properties amidst uncertain economic conditions, leading to a shortage of available homes for sale. Corinne Lyall, owner/broker of Royal LePage Benchmark in Calgary, acknowledges these challenges and highlights the cautious approach adopted by sellers in response to prevailing interest rates.

Potential Changes on the Horizon:

Anticipation looms as experts predict rate cuts by the Bank of Canada, potentially in the latter part of 2024. Anticipated rate cuts could inject new life into Calgary's real estate market, sparking renewed interest from both buyers and sellers alike. Despite the challenges, Calgary's housing market has proven remarkably resilient, demonstrating its ability to adapt and thrive amidst changing economic conditions. Take single-family detached Calgary condos, for instance; their median prices have seen substantial year-over-year hikes, soaring to over 4,000 in the fourth quarter of 2023. Looking ahead, projections suggest an eight percent year-over-year increase in aggregate home prices for Q4 2024, painting Calgary as a region brimming with potential for growth and opportunity.

Calgary's Affordability Advantage:

Amidst soaring real estate prices in other major Canadian cities, Calgary maintains its reputation as a relatively affordable option for prospective homeowners. Calgary's average home prices remaining below the million-dollar mark make it an excellent choice for anyone seeking to establish themselves in a vibrant and diverse community.

Potential Impact of Interest Rate Changes:

The anticipated lowering of interest rates by the end of 2024 is poised to reshape the real estate landscape in Calgary. Lowering borrowing costs could spark renewed interest among buyers and motivate hesitant sellers to put their homes on the market. This shift may lead to an increase in inventory levels, providing prospective homebuyers with a more diverse range of housing options and fostering increased market activity.

As Calgary's real estate market evolves, the outlook for first-time homebuyers appears promising. With the potential for rate cuts and evolving market dynamics, 2024 presents a unique opportunity for individuals to realize their dreams of homeownership in Calgary's dynamic and resilient real estate market.