The Calgary Real Estate Market: What They're Not Telling You

Summary

This video discusses the current state of Calgary's real estate market, addressing concerns about a potential crash. With a strong seller's market, the presenter analyzes statistics from the Calgary University board, revealing price benchmarks and trends. Despite high prices, sales are down, and inventory is up, signaling a shift towards a buyer's market. The video offers insights into market cycles, property types, and strategies for buyers and sellers, suggesting that while the market may not crash, it is entering a transitional phase.

Takeaways

• 🏠 The Calgary real estate market is currently a seller's market but is showing signs of change with an increase in inventory and a decrease in sales.
• 📈 The benchmark price for a detached property in Calgary is $767,000, which is up by 12% year to year, indicating high prices but potential overvaluation.
• 📉 Sales have decreased by 12.8% year to year, suggesting a potential cooling of the market despite high prices.
• 📊 The inventory is up by 99.2%, which is a positive sign for buyers as it indicates more availability of properties.
• 🔍 The month of supply is up by 25.2%, indicating that the market is still favoring sellers but the dynamics are shifting.
• 📈 The most sales are happening in the $700,000 to $1 million price range, showing a preference for higher-end properties.
• 📉 There is almost no sales activity under $200,000, reflecting the lack of affordable housing options in the market.
• 📈 Condo prices have been historically low for a decade but are now showing signs of recovery, not yet reaching bubble territory.
• 💡 The speaker predicts that interest rates are unlikely to drop due to inflation, which could impact buyer purchasing power.
• 🤔 Buyers and sellers need to have a strategy based on current market trends, with different considerations for properties under or over $700,000.
• 📚 Long-term investment in real estate is advised, as property values are expected to increase over time regardless of short-term market fluctuations.

Q & A

Is the Calgary real estate market expected to crash this year according to the speaker?

The speaker does not explicitly predict a crash in the Calgary real estate market this year. Instead, they discuss the current trends, noting that while prices are high, sales are down and inventory is up, suggesting a potential shift in the market.

What is the current benchmark price for a detached property in Calgary?

The current benchmark price for a detached property in Calgary is $767,000, which is 12% higher year to year.

How much has the price of townhouses increased by compared to last year?

The price of townhouses has increased by 16.9% compared to last year.

What percentage increase has there been in apartment prices in Calgary?

There has been a 17.5% increase in apartment prices in Calgary.

What is the current state of sales in the Calgary real estate market?

Sales are down by 12.8% year to year, which indicates a decrease in the number of properties being sold.

How has the inventory changed in the Calgary real estate market?

The inventory has increased by 99.2%, suggesting there are more properties available on the market but fewer sales are occurring.

What is the month of supply in the Calgary real estate market and what does it indicate?

The month of supply is up by 25.2% at 1.38, indicating that it is still a strong sellers market, but the market conditions are changing.

What is the speaker's opinion on the current pricing of a $600,000 house?

The speaker believes that the house, which is priced at $600,000, is overvalued and should be worth around $320,000 based on their experience when they started their career in real estate.

What is the speaker's prediction regarding interest rates and their impact on the real estate market?

The speaker predicts that interest rates are not likely to drop due to inflation, and if they do drop significantly, it might increase demand and potentially cause prices to rise even more.

What advice does the speaker give to sellers in the current market conditions?

The speaker advises sellers to be careful with their listing strategy, not to overprice their properties, and to consider waiting for the right time to list, possibly closer to September when the market historically picks up.

What long-term perspective does the speaker offer for those considering investing in real estate?

The speaker suggests that regardless of the current market conditions, investing in real estate can be a good long-term strategy as property values are likely to increase over time. They also recommend smart strategies like renting out properties to help pay off the mortgage.