Another day brings another challenge for those looking to enter Calgary’s real estate market. According to an updated forecast by Royal LePage, prices in Calgary are expected to soar once again by the end of 2024. This follows a 9.7 percent increase in the aggregate price of a Calgary home in the first quarter of 2024.
The aggregate home price in Calgary is projected to jump by 8 percent between September and December of this year, just shy of the national average increase of 9 percent expected in Canada during the same period. In the first quarter of 2024, Calgary’s aggregate home price exceeded $676,000, marking the highest Q1 increase among major Canadian markets.
Related:
- Liberals plan to solve the housing crisis with 3.9M new homes by 2031
- Canada’s rent prices in March up 8.8% from a year ago
- Home prices expected to climb 4.9% in 2024 as sales rise: CREA
Corinne Lyall, owner and broker of Royal LePage Benchmark, explains that the surge in prices is driven by a shortage of inventory, a trend not limited to Calgary. “Any of our bedroom communities—Airdrie, Cochrane, Chestermere, Strathmore, Okotoks—are all experiencing the same thing,” she says. “It’s a low inventory market with buyers competing against as many as 20 or 30 others for the same property.”
While many prospective buyers are still being pushed to the sidelines, Lyall anticipates some inventory relief by 2026, when most mortgages are renewed, potentially forcing overleveraged homeowners to downsize and list their homes. “Builders are trying to catch up, and our new housing starts have increased this year, which is good,” Lyall notes. “However, it still might not be enough to give people an opportunity to buy.”
Despite a nationwide drop in property values last year, Calgary defied the trend with record price increases. Initially, market analysts believed Calgary would lead the country in price increases this year. However, forecasts now suggest that the Greater Toronto Area and Montreal will outpace Alberta’s largest city in home price appreciation.
The ongoing dynamics in Calgary’s real estate market underscore the challenges and opportunities for buyers and sellers alike, highlighting the city’s unique position in the Canadian housing landscape.
Reference URL: https://calgary.citynews.ca/2024/04/12/calgary-home-prices-increasing-real-estate/
