First and foremost, May the fourth be with you and Happy Mother’s Day! 😊

The real estate market, like most other industries, is a good indicator of how the economy is performing. If you have been keeping up with the news, the Canadian economy is nearing a standstill.

Some economists have described our lack of economic growth as one that is in dire straits.

And the real estate market, especially ours in Calgary, has been in lockstep with inflation.

But has the shift in inflation already started to take hold in our market? Let’s dive into the numbers and take a look.

 

AGGREGATED ABSORPTION RATE – CALGARY – ALL SEGMENTS

 

In April, we saw the absorption (ABS) rate fall from its peak of 103% last month to 100% this month.

I know what you are thinking. First off, how is 103% possible and secondly, to drop from 103% to 100% doesn’t show a market slowing down.

I hear you and I’m with you, but the devil is in the details.

The absorption rate declined by 3%, which was a result of listings outpacing sales for the month. In April we saw listings increase by 12% while the number of sales only increased by 8%. The faster growth in listings is leading to a gap in sales, reducing the absorption rate.

Even though everything is still climbing.

At this same time last year, we were sitting at an ABS rate of 80%, while in 2022 we were at 67%.

The ABS rate does show us that some cracks in our market are leading to some changes in the pricing of all the segments in Calgary. However, this change is amidst the speculation of rates declining in the summer, which I will go into a bit more detail below.

These cracks are starting to show slight signs in our pricing.

 

MEDIAN SALE PRICES PER SEGMENT

 

April saw continued price increases in all segments with the detached pricing leading the way with a new median price of $725,000, which if you are a Calgary native might have you either shake your head or feel the need to sit down.

This is higher than what we would normally expect, but if we shift our mindset to someone outside our city looking in, we are still fairly affordable.

Attached, townhomes, and apartments all saw median price increases as well.

But there is something else happening here with the pricing that is showing us signs of prices levelling off (for the time being).

The detached and attached segments only grew by 1% month over month. This new median price for detached homes of $725,000 is only 1% higher than last month, 2% higher than February, and 5% higher than January of this year.

Which means the increases are slowing down.

This same trend over the last three months can be found across the segments of the housing we have in Calgary.

Now can this be a seasonal thing, maybe. Could the speculation of lower rates in the summer stalling some buyers’ plans? That could also be very true.

But either way, our pricing is not exponentially increasing. Which I hope can bring a small grin to the buyer reading this post and has gotten to this point in tears.

I understand and I’m with you!

But what does this all mean for today’s sellers, buyers, and homeowners that are needing to take action with their current mortgage situations?

Let’s dive into what you can expect.

 

BREAKDOWN

 

Sellers

Everything to this point has been for the sellers out there. Yes, it is still your market and it will continue to be that for as long as we continue to have high ABS rates and low inventory.

But every seller needs a home when their home sells. Whether it be buying a new home or renting for the foreseeable future. And in both of these instances, you need to consider your options.

I help all kinds of sellers. Whether they are seniors wanting to cash out and enjoy their retirement debt-free to younger homeowners who want to move up because they simply need more space.

The reason to sell is driven by a specific need whether it be profit or simply family goals and aspirations.

But selling in today’s market is still hard on sellers. From 50-100 showings of their home, understanding multiple offers and trying to keep it straight and accepting the strongest one, to try to move on while buyers are having difficulty obtaining financing.

If you are considering to move, let’s talk. If you are regular here you know my intentions are just to have you achieve your goals. I’d love to assist you with any questions you might have to start.

Buyers

This post is an emotional rollercoaster for you, isn’t it? I promise that is not my intention. My goal is to keep you informed so you can be competitive and achieve your real estate goals.

It’s not easy, but for my buyers, I make it a point to have them ready to go with all the work done upfront. Finding the home should be near the back of the list and getting the financing in order is what will get you ahead.

Let’s chat about how your process has been and where I can help. Even if you are working with a realtor, I’d love to help you answer any mortgage questions you have to get you going to the next step of finding and obtaining your next home.

Homeowners

Renewals are the scary thing right now. I know, I’m in the same boat next year. For you, I just want you to know you have options. You don’t have to just sign with the lender you have at the terms and rates they want.

Let’s talk about what they are offering you and let’s see if there is another lender that can do better to serve you.

Depending on your mortgage product, you are able to transfer your existing mortgage to another lender and take advantage of potentially better rates and pre-payment privileges.

It doesn’t hurt to get a second opinion on your mortgage options, I hope I can help you where I can.

 

THANK YOU!

 

I know I’ve said let’s chat a few times in this post, and I hope you take me up on it to get the answers you need to navigate this real estate and mortgage market.

I usually have a few people who go through this blog and chat with me about the stats. I get to chat with them about their situations, and some of my experiences, and it leads to either clients that would like to work with me or just someone I was able to help get more education to serve themselves.

Which ever you are, I’d like to say thank you for checking out my post here. It means a lot and I hope you have gotten a lot out of it. If there is anything I can do for you, please feel free to call/text me at 403-354-5664 or shoot me an email at aly@calgaryareahomes.ca

Or if you’d like, let’s connect on Instagram where I post our new listings, contests, and hopefully a few more great stories about clients who were able to take advantage of my advice. My IG handle is @alyjanmohamed.

Thank you and take care.

Aly