Aug 1-15 Market Health and Projections - Foothills Real Estate

Sales volumes of detached homes slowed vs last year. However, comparing to the 5 years average pre-covid, sales volumes are still up for this time of year. For the first 2 weeks of August, which is typically slower time of year, the following puts into perspective our local real estate market health; Calgary - Up 7.6% over 5 year average pre-covid levels. Okotoks is up 19%, Foothills County (all communities) up 40%, Rural Acreages up 46%. So, even though interest rates have risen, inventory has increased, and there is much media attention on price corrections, our region is staying relatively strong.

Looking at some economic data, see attached, I believe we will see some softening in the short term as the data impacts our local Real Estate market pricing, inventory levels will increase, some sellers may believe the sky is falling, but the reality is that long term interest rates are predicted to come down next year, building costs will come down, consumer confidence will pick back up. Alberta is poised for growth. Hold on to your hat. It will be a bit of a bumpy ride over the next few months, but it should settle down into a more balanced real estate market by spring 2023. Here’s hoping!

Price gains and recent media attention about price corrections

Since 2012, the benchmark price of a detached home in Calgary has gone up $197,000. In Greater Vancouver in the same time frame, the benchmark price has gone up by $1 million. What was $435,000 in 2012 is now $632,000 in Calgary. What was $1,065,000 in Vancouver in 2012 is now $2,037,000. We gained 45% over that time, Vancouver gained 91%. I think the big thing to consider is not just % gain but the actual total price gain. We live in one of the most reasonably priced areas in Canada and Alberta has a great outlook. Just a little positiveness for your day and be grateful you aren’t a first time home buyer in Greater Vancouver or trying to do an upsize of your home there.

Calgary and the Foothills Region Real Estate market starts to level out.

As predicted, the crazy times we experienced this year have started to level out. It is still a sellers market with 1 to 2 months inventory depending on product and area. We were way overdue for a price increase after 15 years of up’s and down’s and basically no growth overall in that time frame. I feel positive about Alberta’s economic outlook in the years ahead and feel Real Estate is a great investment and we shouldn’t fear to media’s “recession in 2023” talk.

Population Projections for Alberta and how it effects Real Estate - Alberta

Alberta is poised for a great future. Our economy will, as always, have its up’s and down’s but over the longer term, the provinces entrepreneurial spirit and quality of life will promote population growth which in turn will be one of the main drivers of a healthy real estate market. Good advice from a professional in the real estate business on buying and selling over the short term will become important as our market shifts to a more balanced one over the course of the remainder of 2022. Please feel free to reach out as I am always happy to help in guidance; be it a renovation project, upsizing, downsizing, buying your first home or simply investing in real estate.