Welcome to another Calgary real estate market update for March 2022.
Let's give you the scoop on the current events happening right now.
There are two main things you want to touch on,
and then we'll give you the goods on the stats and analysis by our team.
Let's do this.
The bank of Canada has recently increased this policy interest rate.
And for the last two years,
interest rates in Canada have been at an all time low.
They attempted to help the economy,
whether it effects of the COVID 19 pandemic by keeping the interest rate at
0.25% since early 20,
20 low rates have been enjoyed by many including home buyers amid
the inflation rates in the last three decades,
the bank of Canada finally increases key interest rate to 0.5% with more
hikes, expected to come later.
This year in February inflation rate rolls to 5.1%.
And this has not even be seen since 1991.
Inflation will likely increase even further before it starts to slow down.
Again.
The bank of Canada is a major influence on how retail banks set their prime
rates, especially for things like borrowing and mortgages.
And this will lead to a growth in variable mortgage interest rates.
And if you're not sure what a variable versus a fixed mortgage rate is,
you can check out a video that Felix made here and he will explain it to you.
Many people have already chosen to lock in their variable rate mortgages
to avoid rising payments.
Home buyers will still be able to get relatively inexpensive mortgages to
compete for properties though costs will increase right away.
The effects could be seen over the course of the year.
Won't majorly impact housing sales,
unless multiple whole interest hikes are seen.
And this might even make some of those lower price properties,
even more appealing. And right now,
just so you understand the Calgary real estate market as a whole,
there's only one month of supply, which favors the seller.
And here's the second thing I wanna talk about today,
which is the outside investment into the Calgary real estate market from places
like BC and Ontario right now,
cashflow hungry real estate investors in Ontario and BC are looking into Calgary
housing market because the prices are much lower pre-sales whale or
realtors focusing in new condo builds or pre-construction are pointing to the
Calgary market.
The cash is almost nonexistent in the GTA and BC areas,
but very attainable in Calgary housing markets in oil dependent,
provinces like Alberta have struggled in recent years because of multiple crude
price collapses. Calgary has started to see in uptake in activity.
Thanks to ultra low interest rates and price growth has still been greatly
outpaced by red hot markets like Toronto and Vancouver.
They can Calgary the more affordable option.
That's why the real estate investors are going to Calgary.
Mostly they look for cash flow, but you can realize capital appreciation here.
If you want to read these articles in full I've,
left the links in the description below.
So what is a market like in a nutshell right now,
a surge of new listings have allowed the market to reach a record high sales
activity for the month of February with 3,305 sales.
The market continues to favor the seller with only one month of supply and of
the fourth consecutive month that the mark has dealt with conditions that are
tighter than what the city experienced last spring.
I'll quickly run you through the sales inventory and pricing stats.
So let's take a look at sales first. Now take a look at this graph.
We have the highest sales,
but a huge margin when compared to February in the last 14 years,
wow, that really leaves me speechless.
And to break it down for you by property type,
we have detached homes leading away at 1905 sales.
After the first two months of the year sales growth has been the strongest in
the 600,000 to the $1 million price range with the largest gain in new
listings, semi detach had 297 sales.
This is record high listings met with record high February sales,
and then we have row or townhouses at 537 sales
following several months of strong sales relative to new listings.
Inventory levels have also trended down persistent sellers,
market conditions cause a steep monthly price gains across most districts
in the city. And then in the apartment sector,
we had 566 sales let's talk inventory,
but let me explain something first.
If you have ever thought about selling your home,
this is a very important point to understand inventory affects you because
these are the listings are your competition.
And when inventory levels are lower, like it is right now,
especially for detach homes is a great time to sell because buyers have less
choice and you can command a higher price,
but when other potential sellers that haven't listed yet catch when that it is a
great time to sell as well, some 'em will rush to list quickly.
This is why there are a surge of new listings,
which will replace the inventory somewhat and give you more competition.
Since timing is important,
you need to have the right realtor to help you list your property.
My advice is don't wait or drag your feet when you're preparing. So hit that,
contact us link below to reach our, a team of experts to start the process.
As you can see from this graph inventory levels are still one of the lowest.
When compared to previous years in February for detach homes,
we've had 1600 or so inventory and 2,800 or so new listings
after the first two months of the year sales growth has been the strongest in
the 600,000 to 1 million price range and the largest gain in new
listings.
Semi-detached saw 309 in inventory and 392 in
new listings, which is a record high new listings row town houses had
535 inventory and 693 new listings.
The lack of supply choice and competing property types drove many buyers to
row style.
Housing inventory levels have trended down versus what we traditionally see at
this time of year for apartments,
we had 1,068 I with 693 new
listings,
this is the largest gain in new listings to summarize inventory for all
property types,
decreased detach homes saw 12% lower and semi detached
was minus 18% row in townhouses had a bigger drop of
32% with apartment experiencing 25% lower
inventory versus the same time last year. Well, that's it.
Another record selling month.
Thank you so much for watching and staying with me,
please like share and send us any of your questions in the comment section below
or by clicking the contact us link in the description.
I'm Jasben Lai with the LiveInnerCity real estate team,
helping you keep real estate simple. See you again soon.