Calgary is one of the largest cities in the Alberta province in the western part of Canada. As per the estimation of the recent census, the city has a population of more than 1.4 million. It makes it one of the largest cities in Canada. The city offers beautiful landscapes, a great nightlife, and a very decent quality of life. While there are many things to talk about this city, none is better than its booming real estate market. So, if you are looking for Calgary homes for sale NE, this is what you should expect.
Some Important Terms
To understand the real estate market of an area, there are a few terms that one must be familiar with. Those terms are mentioned below for your ease.
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Supply
Supply is the number of homes that are available on the market. These include all those that are newly built and those that have been sold recently. The two make the “total supply,” whereas the new houses on the listings are known as “New Supply”.
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Demand
It is a general view that people who are looking for houses make the demand, but when it comes to statistics, this is not the case. In stats, demand is the number of properties that have been sold recently. So, if there are hundreds of customers visiting the realtors but only five houses are sold, the demand would be five.
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Supply and Demand
Supply and Demand is the ratio between two. It is the most important indicator to understand the performance of the real estate market. If a market has more supply and less demand, it means that the industry is not growing. Hence, investing in such areas does not have high potential.
Whereas the areas that are running short on supply because the demand is higher indicate that the market is booming. It is where investors should invest and capitalize on the available opportunities.
Calgary’s Supply & Demand
While the rest of the Canadian real estate markets are struggling owing to the aftermath of COVID-19, Calgary remains unaffected. In February of 2022, listings in the market were up by 87% and the sales were skyrocketing at up to 160%. The percentage is calculated by taking the sales of the previous four years into account. Experts have predicted that sales will grow even higher in the coming months.
Furthermore, the real estate market has witnessed a rise in inventory, but those numbers are still low compared to historical norms. Because of the higher demand and competition, the sales have dropped. It might seem like a paradox, but let us explain. The decrease in sales is not because people have lost interest, but because there are not enough houses on sale. Hence, it means that the market is thriving.
Prices in Calgary’s Real Estate Market
The average price of the detached home is $647,500, which is about 16% higher than it was in 2021. Semi-detached homes have an average price of $581,600, and townhouses can be bought at anywhere around $360,000. It seemed that Condo prices were beginning to decrease in 2021, but the sudden growth actually caused a 1% increase. Their average price at the moment is around $277,400.
Experts believe that COVID has impacted this market differently. The province is seeing a large migration flow back into the province, which is unprecedented and has led to a boom in the market. It was also speculated that prices might go down halfway in 2022, but so far, the market remains the same.
What Does It Mean For Sellers?
The statistics suggest that demand is currently too high, which has increased competition. It means sellers can now cash in and sell their properties at a higher price. However, it does not necessarily mean that the property will sell at the average cost. The overall market plays a significant role, but the price of property is ultimately determined by the demand in the community where it is situated.
What Does It Mean For Buyers?
Sales in 2022 have remained lower than in previous years, which indicates a rise in demand. It means that buyers have to be active and make the move as soon as possible. They cannot afford to wait for new listings because prices are not likely to drop. If you are looking to purchase a property that can offer instant profit, Calgary’s real estate market is hot cake right now.
We hope you found this blog post Real Estate Market in Calgary, Canada, useful. Be sure to check out our post 2022’s Best & Worst Places to Invest in Real Estate for more great tips!
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