Happy New Year, everyone! Wishing you all a very prosperous, happy and healthy year ahead!

As we wrapped up the year, we've seen some real estate price moderation in the City of Calgary, largely driven by improved rental supply, and a seasonal increase in listing activity. That said, we're still very much below long-term trend levels for inventory across our city, particularly in lower price points. 

Here's our view of the Sales vs. Listings dashboard:

Key takeaway: Across all months, supply (listings) continues to trend below the 5-year average by 27%, while sales (absorption) is up 15% over the 5-year average.

Some further details about how the month of December played out, per CREB figures:

This morning, the Bank of Canada trimmed interest rates for a fifth consecutive time as the country's economy grows at a slower pace than expected. 

The 50bps cut (or 0.50%) was largely expected by analysts and economist, as Canada's GDP grew by only 1% in Q3 2024, and Q4 2024 is looking much weaker than projected.

Not only that, but Canada's unemployment rate also rose to 6.8% in November, making it tough for those who are looking for work, especially those younger and newcomers. 

BMO chief economist expects that to increase further, averaging 7.0% in Q1 2025, before receding slightly. Further complications to the Canadian economy are clouded by uncertain US tariffs that were threatened, which would also further weaken the Canadian dollar (currently 0.71 CADUSD at time of writing). Further Details.

The silver-lining in this is that cost for housing as improved, as well as the larger inflation picture for goods and services across the country... What this could do for Alberta, and Calgary could potentially mean a more balanced market into the new year (i.e., further demand for housing driven by lowered interest rates but offset by the impact of unemployment, and lower population growth). That said, there still remains consistent demand in Calgary for homes priced under $600K, and more a buyers' market for anything above $700K, for now.

The next BoC rate announcement will be on January 29, 2025. 

Additional inflation data will be released over the next few weeks for an update on November figures.

Announced yesterday, Canada's inflation rate INCREASED more than expected in October (+2.0% month-over-month), as compared to September (+1.6%). 

This rate of price growth (inflation) is a KEY measurement tool for the Bank of Canada to decide on it's interest rate policy, and has been the main focus since Canadians have been feeling the pinch in inflation, from groceries, gasoline, and ultimately real estate prices. 

The announcement, although disappointing to the BoC, followings a string of reports of better-than-expected performance to it's interest rate policies.

Although a mixed bag of estimates, the general consensus is for the BoC to trim interest rates FURTHER on December 11, 2024 (next BoC rate meeting announcement). The question becomes - by HOW MUCH will the BoC trim interest rates? For now, banks and economists are expecting a 25 to 50 bps reduction (or 0.25% to 0.50% cut). This would bring the BoC policy rate down to either 4.0% or 3.75% in December (isn't that a relief? We haven't seen rates with a 3-handle for some time now!). 

Below is the relationship between interest rates and inflation in summary:

With the change in interest rates, here's a rough relationship between detached home prices in Calgary and policy rates:

Only time will tell how the rate cuts will impact our real estate market here in Calgary, but industry expects a ramp-up of demand following this last rate cut of the year, and setting us up for high demand in the Spring. 

Reach out if you have any questions, or are curious on how you're best positioned on this evolving market on both the buying and selling side.

Good morning folks, another monthly update from CREB for the month of October – Needless to say, the same problem continues to exist, with lower-priced homes in HIGH demand, while the market for higher-priced homes is now becoming more balanced. That said, October sales activity increased over last month, and remains elevated at ~24% higher than the long-term trend. 

Sales activity would be stronger, if we had seen more inventory for product priced under $600K. 

Overall, inventory levels have improved with growing number of listings over the last 6 months (4,966 units available in October), a marked improvement from last year's near-record low of 3,205 units last October. Despite this, the composition of inventory is the key change, with nearly 50% of the inventory now priced ABOVE $600,000.

Recall, a balanced market see's month of supply range between 3-4 months, and we're still sitting in quite a tight market with 2.3 months of inventory. 

More below from CREB:

Details by property type, below:

If you have any questions at all, please reach out to our team to help guide you, wherever you are in the process!

As colder fall weather and winter months quickly approach, below are some fall and winter maintenance tips to share! Whether you're renting or you own property, these are good to know to make sure you and your family are safe and secure for the colder months ahead, and your investment in your home is protected. Also a great time to update your home insurance policies to ensure adequate coverage for your home and belongings.

Please reach out if you're looking for inspector / contractor to help with any of the work below! 

For those of you who are keen on keeping track of HVAC service items, I've put together a handy tracker to tape in your mechanical room as a reminder of when it was last serviced. Feel free to use and download HERE. I know we always forget to change our furnace filters, so here's a little extra step to make sure you're taking care of those items making them last longer.

The Government of Alberta has officially announced registration fee increases outlined in it's Spring budget, to take effect October 20, 2024 which will have material impact to real estate transactions. 

What are registration fees?

a. They are fees imposed by the Alberta Land Titles Office for registering documents, including transfers of land, mortgages, builders' liens and caveats. When these documents are registered, it ensures there is a public record of who owns the land and any interests of encumbrances or liens.

Key Fee Changes to Know (this impacts the buying side):

1. Transfers of Land

2. Mortgage Registrations and Land-Charging Caveats

Here is a simple comparison of the OLD FEE vs. the NEW FEE, as an example:

This is a material jump in cost for purchasing and needs to be understood when making your purchase, so it's not a surprise (part of closing costs). 

Land Transfer fees have jumped 150%, while Mortgage Registration fees have jumped 200%. 

Despite these increases, Alberta's land title and registration fees still rank the LOWEST in Canada. In comparison to BC and ON, not only are Alberta fees LOWER, we also don't have a land transfer tax that could represent a range of 1–3% of total purchase price, based on pricing tier. 

If you have any questions or concerns, best to get a consultation with a real estate lawyer, or can call me to discuss!

Wow, October already! Hoping everyone is enjoying the nice fall weather we've had – quite a few things to look forward to into the season and into the holidays to finish the year. 

CREB released it's month market update yesterday, and the underlying comment here is that the market is shifting. 

In September, we experienced total sales of 2,003 – 17% BELOW last year's record high, but remains 16% ABOVE the long term trend. 

Listings are increasing, but not in a way you'd expect. The growth in listing activity has been in higher-priced homes, with limited choices for lower-priced homes, likely preventing stronger sales in our market.

While demand remains high across all price ranges, we don't expect the lower-priced supply issues to subside anytime soon. Total new listings rose to 3,687 units, the highest September total since 2008 – which did support some inventory growth (total September inventory: 5,064 units), but remains under the 6,000 units we typically see in September. 

More details below (FULL RELEASE HERE):

Detached

• Benchmark Price: $757,100 (-0% MoM, +9% YoY)

• Total Sales: 942 (-26% MoM, -17% YoY)

• Total New Listings:  1,792 (+4% MoM, +18% YoY)

• Sales-to-New Listings: 53%

• Months of Supply: 2.5 Months (+67% YoY)

• Days On Market: 27 Days (+7% YoY)

Semi-Detached

• Benchmark Price: $678,400 (-0% MoM +10% YoY)

• Total Sales: 182 (+6% MoM, -4% YoY)

• Total New Listings: 299 (+0% MoM, +8% YoY)

• Sales-to-New Listings: 100%

• Months of Supply: 2.0 Months (+34% YoY)

• Days On Market: 25 Days (-4% YoY)

Townhomes

• Benchmark Price: $459,200 (-0% MoM, +10% YoY)

• Total Sales: 377 (-2% MoM, -5% YoY)

• Total New Listings: 603 (+57% MoM, +27% YoY)

• Sales-to-New Listings: 63%

• Months of Supply: 2.0 Months (+102% YoY)

• Days On Market: 25 Days (+19% YoY)

Apartments

• Benchmark Price: $345,000 (-0% MoM, +14% YoY)

• Total Sales: 502 (-17% MoM, -29% YoY)

• Total New Listings: 993 (-0% MoM, +7% YoY)

• Sales-to-New Listings: 51%

• Months of Supply: 3.2 Months (+121% YoY)

• Days On Market: 33 Days (+16% YoY)

If you have any questions at all, please reach out to our team to help guide you, wherever you are in the process!