For the second month in a row, sales activity has trended down. But context matters. It is trending down from record highs but sales are still way stronger than typical sales for May in Calgary.
Buyers were taking advantage of ultra-low interest rates and many were making a lifestyle shift due to covid. This pushed activity up and then sellers were quick to take advantage of the price increases but inventory never matched the demand pushing prices up even further.
Sales activity has started to slow, primarily because of increased interest rates and prices. If this shift continues, the current seller’s market will begin to lead towards more balanced conditions.
Interest rates have just increased by another 50 basis points to 1.5%. It is assumed that there are significant rate increases to be expected in the near future. Many expect that this latest increase will cool the market however, it will drive the market for the short term as potential buyers have to act quickly before the next increase. The next announcement from the Bank of Canada is scheduled for July 13, 2022.
Interest rates are going up.
Building costs are going up.
The price of oil is going up.
The price of gas is going up.
The price of almost everything is going up. Even Dollarama is raising their max price to $5.
These increases will ultimately drive YYC real estate prices for the foreseeable future.
This is because we are still one of the most affordable major cities in Canada with one of the highest quality of living standards and with pretty good infrastructure.
Calgary, and all of Alberta, has a lot to offer.
This will be our time (again) and we are here to help with your real estate along the way.
Sellers – now is the time to sell while inventory is still low.
Buyers – now is the time to buy (or at least lock in an interest rate) before interest rates increase again.
Homeowners – now is the time to review your mortgage. If it is coming up for renewal, act now and lock in a rate as soon as possible. It may even be worth paying a mortgage break fee to lock in a lower rate. If you want to speak to a mortgage specialist, let us know and we can connect you with some amazing brokers.
For the detailed market statistics from the Calgary Real Estate Board for May 2022 click HERE. Contact us directly for the stats on Airdrie, Cochrane, Rockyview, Bighorn, or other areas in the Calgary region.