Optimism continues in 2022 for Calgary’s real estate market – Calgary

A new study from Royal LePage continues to paint a rosy picture for Calgary’s real estate market in the coming months.

“Calgary’s real estate market ended the year strong and I think the trend will continue into the spring market in 2022,” Royal LePage Benchmark broker Corinne Lyall said. “As demand continues to exceed supply in one of the country’s most affordable cities, prices are expected to continue to rise.”

That Royal LePage house price survey shows that the total price of a house in Calgary rose nine percent year-on-year to $ 576,800 in the fourth quarter of 2021.

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Meanwhile, the median price of a single-family home rose 11.6 percent to $ 650,800, while the median price of a condominium rose 3.0 percent to $ 224,700 over the same period.

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“Lack of inventory, especially at the lower end of the detached market, continues to drive price increases and create an increasingly competitive environment for first-time buyers,” Lyall said.

“A thriving labor market, quality of life and affordability are among the key factors contributing to the current rise in demand for housing in Calgary.”

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Calgary estate agent Len T. Wong agrees that a lack of stock is a factor that is pushing prices higher.

“Typically, we don’t get busy until maybe late January to the first part of February,” Wong said. “What we’re seeing right now is when new ads (homeowners) do not accept offers until two or three days down the road to ensure they get maximum value.”

“We’ve seen some of the townhouses actually start getting activity because there’s no furniture for detached houses, and now they’re going to Plan B.”

Wong also said he sees an increase in the number of people outside of Alberta who are interested in buying in Calgary, some of whom choose to make an offer before they even set foot in the home.

“We’re back to bidding war,” he said. “Many times the younger generation or the first-time buyer enters the marketplace and they lose two or three times and that causes anxiety.”

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That’s why Vancouver residents Thomas Grier and Sarah Massie chose to buy their home in Calgary virtually.

“We found out that … the Calgary market was going to get warmer as we moved away from the winter (season), and so that put a little bit of pressure on us,” Grier said. “You had to walk about an hour or two outside of Vancouver to find something comparable to what we got at Garrison Greens in Calgary.”

“When we had the opportunity to really see what’s available and in our price range in Calgary, we just decided to go for it,” Massie explained.

Mount Royal University Economics professor Anupam Das said other factors driving house prices in Calgary include higher oil and gas prices, supply chain problems as well as lower interest rates.

“One thing everyone should take into account is that in the end, the Bank of Canada will raise interest rates so that mortgage rates will also rise,” Das said. “When we renegotiate our mortgages in the future, we will probably have to pay higher interest rates.”

At the national level, the survey shows that house prices are also doing well in other parts of Canada, where total house prices rose more than 17 percent year-on-year to $ 779,000 in the last quarter of 2021.

The national median price for a single-family home also rose 21.1 percent year-on-year to $ 811,900, while the median price for a condominium rose 15.8 percent year-over-year to $ 553,800.

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“Like a nightmare that disrupts your sleep for months on end, we began 2022 with a new round of pandemic restrictions,” said Phil Soper, president of Royal LePage. “Thousands of Canadians have redirected their growing savings to improve living conditions as the family home serves as an office, restaurant and schoolroom.”

In December, Royal LePage released its 2022 forecast, which stated that the total national price of a home is expected to rise 10.5 percent year-on-year.

© 2022 Global News, a division of Corus Entertainment Inc.


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