In March, Calgary home sales and new listings in the housing market have improved compared to the beginning of the year. However, the low inventory levels, with only 3,233 available units, have driven up home prices. The total unadjusted residential home prices in March reached $541,800, a two percent gain over last month and nearly one percent higher than prices reported last year.
So, what does this data mean? First of all, let’s focus on the upside: prices are up. Primarily because inventory levels are at their lowest in almost two decades across all segments, and the Alberta economy is one of the strongest we’ve seen in a long time. Despite eight significant interest rate moves over the past 12 months, real estate prices in Alberta are still on the rise and are expected to continue their upward trajectory. In fact, 160,000 people moved to Alberta in 2022, more than any other province in Canada, and we’re seeing some of the lowest vacancy rates in a decade, sitting at about 2.7%. All of these factors are contributing to a real estate boom, and prices are set to boom right along with it.
That said, data shows that owning hard assets, like Alberta real estate, is a smart move in today’s inflationary and uncertain world. Of course, there are downsides to this boom as well. Limited inventory can create confusion and even unethical behavior in the marketplace. It can also lead to inflated and unsubstantiated prices and irrational decision-making. Buyers need to be particularly careful and patient in this kind of market. There’s a shortage of sales to go around, and some Realtors and buyers may be making decisions without all the necessary information.
Sellers, this is your time to shine. But remember, every boom is different, and we need to be cautious and make the best decisions possible for the long term. Let’s work together to make the most of this boom and ensure that it benefits everyone in our community.
Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn, or other areas in the Calgary region.