MARKET UPDATE (Q2, 2024)

Are The Tides Changing?

Calgary just finished up the Greatest Outdoor Show on Earth with record numbers. A huge success for the Calgary Stampede and Calgary as a whole! There is no doubt that Calgary is the place to be!

With Q2 come and gone, the housing market remains dynamic, but are things starting to shift? For the first time in a while we’ve seen the total average inventory flat, or with no negative change/reduction in inventory year over year. Apart from Q2 of 2021, we’ve seen a steady decline in overall average inventory. The lack of, or decline, of inventory in each sector has been notable. From rising interest rates to lack of supply, this has forced buyers to seek more affordable options and take higher risks, using unconditional offers as leverage to make their offers more attractive to sellers.

Although inventory remains a concern and has still decreased year over year, we have seen one exception for Q2, and that is the Row sector which inventory levels rose by 2.7% compared to last year at this time. Notably, the Detached, Semi-Detached, and Apartment sectors all slowed in their decline of inventory, but not enough to offset demand.

Interest rates have dropped for the first time since March of 2020, and there is another rate announcement just around the corner, set for July 24^th. The market is strong, people are still migrating/immigrating to Alberta in record numbers, Q1 2024 surpassing Q1 of 2023…

So, what’s happening? Are we seeing buyer fatigue? Have prices become too expensive for buyers? Are buyers being more strategic and waiting on the sidelines for prices to adjust or interest rates to drop further? Or is the increased cost of living finally having an impact on our market? These are alI things to consider.

It could be that people are at their threshold or have decided to take more time and/or wait before jumping into this hot market, but we may be at the beginning of a shift to a more balance or less competitive market. Professionally, I’ve seen more sellers taking conditional offers. Something that should never be out of the norm, even in a seller’s market, when you consider the investment you are making when buying a home. Conditions are there to protect both parties.

It may all be too early to tell, but this could be evidence that the tides might be changing.

If you’re looking for more information or want to discuss your real estate goals, please feel free to reach out!

Roddrick Hofrichter
Real Estate Associate
P: (403) 404-3165
E: roddrick.hofrichter@c21.ca
W: http://roddrick-hofrichter.c21.ca/