The Calgary Real Estate Show - October Market Recap

Summary

In this Calgary Real Estate Market Recap, the team discusses the latest stats, including a significant drop in new listings and sales, leading to a seller’s market with a 71% sale-to-list ratio. Mortgage rate changes are also explored, with expectations for further decreases in 2025. The panel also delves into emerging bathroom trends, from incorporating laundry to plastering over tile, as well as the state of various real estate segments like detached homes, row townhouses, and apartments. Overall, the market remains competitive, but buyers now have more options and a chance for inspections, offering a balanced outlook for both buyers and sellers.

Takeaways

• 😀 The Calgary real estate market saw a decrease in new listings and sales for the week, but the sale-to-new listing ratio remains strong at 71%.
• 😀 Comparing year-over-year data, sales are up slightly by 0.25%, but new listings have increased by 15% and active listings have risen by 51%.
• 😀 Mortgage rates have shown some slight movement, with a decrease in variable rates but fixed rates increased due to external factors like the U.S. election.
• 😀 The forecast for mortgage rates suggests a possible decrease in the next few months, with a half-point drop expected by December.
• 😀 There's a noticeable shift in buyer behavior, with more available inventory giving buyers more options and potentially easing competition.
• 😀 The 2025 bathroom trends are focusing on space-saving features, such as incorporating laundry into bathrooms and using plastering instead of tile for waterproofing.
• 😀 Home buyers and sellers alike are adjusting to the market, with a continued preference for certain property types, especially detached homes.
• 😀 Calgary's real estate prices for detached homes have risen by 8% year-over-year, but there is some variability in month-over-month trends.
• 😀 The apartment condo market in Calgary is experiencing a large increase in inventory, which is beginning to impact pricing and market dynamics.
• 😀 While some areas, like detached homes, are seeing a seller's market, other areas, such as row townhouses, are seeing a shift towards more balanced conditions.
• 😀 Buyers are now benefiting from more choice in the market, and the possibility of securing a home inspection or condo document review is much more feasible compared to previous years.

Q & A

What is the current trend in Calgary's real estate market according to the latest stats?

Calgary's real estate market is currently experiencing a decrease in new listings and sales, leading to a decrease in the sales-to-new-listing ratio. However, there is still a sellers' market with inventory levels and prices up compared to last year, particularly in higher-end segments.

Why has the 'days on market' metric increased in Calgary recently?

The increase in days on market is attributed to the dramatic rise in apartment condo inventory. As more apartments are available, the market is experiencing a longer time for these properties to sell.

How did mortgage rates react to the U.S. election results?

Mortgage rates saw an increase after the U.S. election results were finalized. This was due to the bond market's response to the results, leading to a rise in fixed mortgage rates. However, variable rates were not directly affected by changes in the prime rate.

What is the current recommendation for mortgage options given the market conditions?

The recommendation is to consider a one-year fixed-rate mortgage or a three-year fixed rate, as well as variable rates, depending on individual risk tolerance. A one-year fixed-rate mortgage offers the flexibility to adjust after a year, especially if rates are expected to drop in 2025.

How are home buyers benefiting from the current market conditions?

Buyers now have more choice due to increased listings and less competition compared to previous years. This allows for a more balanced market where buyers can negotiate, get home inspections, and make more informed decisions.

What are some bathroom design trends expected in 2025?

Notable bathroom design trends for 2025 include incorporating laundry into bathrooms for space efficiency, using plaster instead of tile for easier cleaning and waterproofing, incorporating furniture-style vanities, and integrating features like Nordic-style spas and statement stone walls.

What does the Calgary real estate market's overall inventory and sales picture look like for October 2024?

In October 2024, new listings were up 21.6% and inventory increased by 55% compared to the previous year. Despite these increases, the market is still in a seller's market territory with a 2.28 months of supply, though prices were relatively stable or slightly increased overall.

What is the impact of the rise in inventory on various property segments in Calgary?

The rise in inventory is affecting different property segments differently. While detached and semi-detached homes are still in a seller's market, row townhouses and apartments have seen a sharp increase in inventory, leading to longer market times and less competition in these segments.

What is the trend in sales for homes priced above $600,000 in Calgary?

Sales for homes priced above $600,000 are up in Calgary, offsetting declines in the lower-priced market segments. This trend suggests that the higher-end market is performing better compared to more affordable properties.

What advice is given to home sellers in Calgary's current market?

Sellers are advised to price their properties correctly from the start, ideally on the first weekend of the listing. If the price is set too high, it can result in prolonged market time. It's also recommended that sellers either improve their property's appeal or adjust the price to meet the market demands.