It is the beginning of another year and as we prepare for the coming months, it is a privilege to keep you all “in the know”. We expect the interest rates to hold steady or even lower over the next 6 months or so. With this said, be prepared for a staggering amount of activity and competition amongst buyers should the rate lower even slightly.
Price increases are not over. We are expecting an 8% increase over the next 12 months.
We hope to see a New Year surge of new listings come on the MLS over the next few weeks.
The great Calgary Migration continues!
As December wrapped up, we were left with about 45 days’ worth of inventory with the average listing in Calgary being on the market about 33 days. Our sales again exceeded our new listings so our inventory continues to struggle. With the new year and the holidays behind us we expect new listings to finally hit the market. This is good news for those that have been seeking and hoping to find a home under the current conditions.
Do I buy now or wait for an interest drop?
There are a couple of things to consider here. First of all, with continued migration to Calgary and ongoing low inventory levels we are expecting an 8% increase in home prices over the next 12 months. With just that consideration alone it would be prudent to get in quickly. The other consideration is that as soon as there is a drop in Canada’s prime rate, there will be a flurry of offers on that exact property that you are hoping for. This type of activity is what is going to drive prices up this year. So, the short answer is no, do not sit on the fence. In 2024 the early bird gets the worm.
What if I have a home to sell?
What’s important to remember here is if you are buying in the same market that you will be selling in, you want to be in the market when there are other homes available for you to purchase whether you are moving up to a larger home or downsizing. It is the entire picture that is important. Yes, we want to optimize your net sales proceeds, but you will also want to consider the market environment you will be negotiating your purchase in.
“Sales in 2023 did ease relative to last year’s peak, but with 27,416 sales, levels were still far higher than long-term trends and activity reported before the pandemic.” -CREB
Our benchmark Price $570,100
We finished our 2023 with a 10.7% price increase over 2022. Our current inventory rests at around 2200 homes available in the city of Calgary. That is a 44% decline over the 10 year average. Translation? Very low!
