Housing options are scarce in Calgary unless you've got deep pockets

With the rough housing market in Calgary, many are just trying to stay afloat, but there is one type of buyer making gains in the real estate market… the ones who already own a home.

A new report from Re/Max Canada, shows “move-up buyers” who are Canadian homeowners looking to upgrade are the ones driving the housing market. The findings show they are trying to get ahead of increasing Bank of Canada interest rates.

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“January marked the trough for residential activity, as sales and prices reached new lows. When the Bank of Canada signalled its intent to hold on further interest rate hikes, the floodgates opened, sending buyers into the market from coast to coast,” says Christopher Alexander, President of Remax.

The market picked up until June when the bank announced it was raising the overnight interest rate, which took a toll on cities across the country with some exceptions, including Calgary.

Sales have dipped by about 20% compared to last year in Calgary, but business is still booming.

Houses that are seeing the most demand in YYC cost between $500,000 and $700,000.

Part of the demand is coming from people moving to Calgary from outside of the province, searching for more affordable housing and job opportunities.

Inventory shortages from the demand have created a competitive environment, and Calgary is now one of the only markets in Canada where the average cost of a home now exceeds what it was in 2022.

There are also fewer houses up for sale because many homeowners are afraid of selling and not finding a new place.