"Strong sales" expected to continue for Calgary's housing market in 2024
Calgary’s housing market is expected to ease slightly this year compared to how it was in 2023, but it’ll still be a sellers’ market.
According to a recent report by the Calgary Real Estate Board (CREB), factors that contributed to soaring demand leading to a domino effect of increased prices are going to help sales activity.
Those include migration, employment in the labour market, and an increase in listings.
“Moving into 2024, we anticipate that potential buyers who were previously on the sidelines due to limited supply choices may reenter the market as lending rates ease and listings improve,” the report reads.
“While international migration has influenced rental markets, resulting in increased rental gains and heightened demand from investors, interprovincial migration from higher-priced markets in British Columbia and Ontario has helped support sales growth in the higher price ranges of our market.”
And even though migration — something economists and real estate experts have continually attributed to the rising costs of housing — is expected to slow down, it won’t be enough to offset demand.
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In 2023, higher lending rates drove more demand toward affordable housing while preventing some homeowners from making changes to their existing housing situation at the same time.
That resulted in further inventory declines, persistent seller market conditions, and higher-than-expected price growth, according to CREB.
The board says the only segment of the market to see improvements in new listings was in the upper end of the market.
It’s something that likely contributed to the gain in sales for homes priced over $700,000.
In terms of comparing this year to last, things are looking like they’ll get better — but it won’t happen overnight.
“Conditions are not expected to be as tight as in 2023, but supply growth takes time, and sellers’ market conditions are expected to persist through the spring, driving further price growth in 2024,” Ann-Marie Lurie, CREB’s chief economist, said in a statement.
“We expect potential buyers, who were on the sidelines due to limited supply choices, to reenter the market as lending rates ease and listings improve.”
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