In real estate, timing is everything. Determining the optimum time to buy a property in Calgary can significantly impact the number of properties available, the amount you pay for the home, and how easy it is to move on at that time. Homebuyers in Calgary focus on finding the appropriate house, but the property’s value will also influence their decisions. If you are considering purchasing a home in Calgary, this guide will assist you in determining the optimum time of year to begin your search. Also, if you plan to sell your property, you’ll learn when the optimum time is to place your house on the market in Calgary.
Calgary is going through a property boom. The city’s population jumped by 3% in the past year, and home prices increased 14%. The average price for a house in Calgary has increased to $492,000 from $454,000 last year. It is excellent news for buyers who want to get into the market now – but what about those who are already homeowners? Many people wonder if it’s too late to make money by buying instead of renting. There’s plenty of good information on how the housing market has changed over time, but there’s not enough information on whether or not this boom is sustainable and when it will end. It would be wise to wait before making any decisions until we know more about where things are headed.
It’s not just the housing market that’s booming in Calgary right now. Restaurants, stores, and other businesses are seeing a surge in customers and are expanding to meet the demand. Job growth is also strong, with over 41,000 new jobs created in the past year. It is excellent news for those who are looking for work – or for those who are looking to upgrade their job.
If you’re thinking of making a move to Calgary, now is the time to do it! The city is booming with new opportunities, and there’s plenty of room for growth. Just make sure you do your research to know what to expect in the housing market.
Recent Updates on the Housing Market in Calgary:
- In January 2022, many new listings added much-needed supply to Calgary’s housing market as home prices continue to rise. In January 2022, the average price of a property in Calgary’s housing market was $510,701, an increase of 8% over January 2021. It is the highest average price in Calgary since May 2021, when prices peaked at $510,908 per square foot. In January 2022, the median home price in Calgary was $466,000.
- The average price of a detached home in Calgary in January 2022 grew 11.6 percent year over year to $624,161, up 6.2 percent over the previous month. Semi-detached homes outperformed detached homes, with an average price of $558,094 and a 16.6% yearly raise. Compared to the average semi-detached price of $496,114 in December 2021, this indicates a staggering 12.5 percent monthly gain. In January 2022, townhouse prices increased 11.3 percent year over year to an average of $336,638.
- While condo units in Calgary previously topped the industry in terms of annual price growth, their dismal performance in January 2021 has pushed them to the bottom of the market this month. In November 2021, a 21.5 percent year-over-year increase in condo prices gave way to a more modest 4 percent increase in January 2022, placing the average price in Calgary at $268,141. Out of all the cities, Calgary condos had the lowest sales-to-new-listings ratio, the most inventory, the longest average days on the market, and the most months of supply.
- Since early 2020, supply in Calgary’s housing market has been rapidly falling. In January 2020, the market had more than six months of supply, and in January 2022, there were only 1.3 months of supplies left. Inventory levels have decreased from 5,168 in January 2020 to barely 2,620 this month, while sales have climbed from 859 in January 2020 to 2,009. Compared to the previous year, sales increased by 66.5 percent, firmly placing Calgary among the hottest property markets in Canada in sales activity growth. While overall sales in January 2022 are up 66.5 percent year over year, the existence of higher Calgary property prices has resulted in an 80 percent increase in total sales volume.
- In January 2022, there were 2,476 new listings in Calgary, nearly quadrupling the 1,230 new listings from the previous month. It’s also up 10% from the previous year. Calgary’s sales to new listings ratio (SNLR) has dropped from 140 percent in December 2021 to just 81 percent in January 2022, thanks to many new listings this month. It contributed to a modest increase in inventories from 2,617 last month in December 2021 to 2,620 in January 2022. Even still, the tiny increase in new listings hasn’t kept up with the hectic pace of Calgary house sales, resulting in a 35 percent decline in inventory in the Calgary housing market year over year.
Updates on Mortgages in Calgary Housing Markets:
The CMHC has lowered its rules for insured mortgages, a new regulatory tailwind for Calgary’s housing market. It reverses last year’s rise, lowering the necessary credit score from 680 to 600 and raising the GDS and TDS ratio limitations to 39 percent and 44 percent, respectively, from 35 percent and 42 percent. It gives home buyers more bargaining power across Canada, particularly in Calgary, where average home prices are still around $1 million.
However, the Office of the Superintendent of Financial Institutions (OSFI) and the Ministry of Finance recently increased the mortgage stress test rate benchmark for insured and uninsured borrowers in 2021 from 4.79 percent to 5.25 percent, putting marginal buyers out of reach.
Potential Bank of Canada rate hikes has loomed over Calgary’s housing market, with buyers looking to lock in mortgage rates before they arise. While the Bank of Canada has not yet raised rates, the prospect of higher Alberta mortgage rates and diminished housing affordability could drive up demand in the coming months.
Best Places to Live in Calgary
Due to recent economic and political obstacles caused by COVID-19 and oil issues, the health of the Calgary housing market has yet to be assessed. Job insecurity and economic uncertainty are two major concerns for property purchasers in Calgary. Retirees, younger first-time home buyers, and individuals trying to climb up the market are all examples of these home buyers.
So, where are the most incredible places to buy a home in Calgary? The new 2020 Livability Report identifies Canada’s most livable hotspots. Here are some of our favorite places to live in Calgary:
- Lower Mount Royal
- Downtown East Village
- Downtown West End
- Downtown Commercial Core
Factors to Focus on While Buying a Property in Calgary:
Climate: The importance of our Calgary weather cannot be overstated. There are particular distinctions and time ranges to pick from when it comes to the optimum season to buy a house, and it is also contingent on when sellers wish to pack their belongings and relocate.
Inventory: Knowing how much inventory is available in your neighborhood is one of the best predictors of when you should buy. Because inventory results from both listings and sales, this is the case. Although new listings may be plenty, if sales are also plentiful, purchasing at that time may result in the loss of properties; nevertheless, if inventory levels are high, sales may be on the lower side compared to new listings.
Rates/prices: When will I obtain the best deal on the house? It is property dependent, but we can make some robust generalizations based on real estate market patterns and data on when sellers are likely to accept lower pricing. Again, this will depend on the property and the seller, but having the inside scoop never hurts.
New Listings: As a buyer, you’ll want a variety of options when looking for your new home. When faced with a large purchase, the last thing you want to do is agree on a location. It’s one thing to go to your favorite restaurant and have to settle for your second favorite dish on the menu, but it’s a whole different situation when it comes to a house.
Sales: Knowing when the most sales happen, you are in a powerful position. You’ll have an advantage when it comes to negotiating because you’ll have a general understanding of the seasonality of Calgary’s market circumstances.
Cost of Living in Calgary
If you’re on the lookout for a city to call home, you’ll be delighted to learn that the cost of living in Calgary is reasonable when it comes to housing. In fact, with prices at historically low levels, now is a beautiful time to rent or purchase in Calgary. If you want to live on your own in the city, studio flats range in price from $750-1,000. Most advertisements need an entire month’s deposit (which may surprise former Quebec residents), and you’ll also need to spend for getting the apartment furnished in most situations. In the city, a three-bedroom rental house costs roughly $1,200-1,800 per month (as of late 2018), which is pretty affordable. If you’re looking for a place to stay in the trendy Southwest and Northwest areas, rent will be on the upper end of the scale. House prices are currently hovering at $420,000-470,000 on average, with little to no price rise.
If you acquire a condo, your costs will be dependent on the square footage of the unit; they typically range from $0.35 to $0.70 per square foot. So, for a 1000 square foot unit, your monthly rates would typically range from $350 to $700.
When it comes to driving a car, living costs in Calgary are meager, with a liter of gas costing roughly $1.25. (as of November 2018). Uber and taxi services are plentiful in the city, and Car2Go is a good option if you want to drive but don’t want to buy a car. For short trips, renting one of these shared cars might be significantly less expensive than taking a cab.
A monthly pass ($103) is a fantastic value if you live near a C-Train or bus line. A single bus or train ticket costs $3.30; the C-Train is free between downtown stops.
Residents can apply for Alberta healthcare coverage right away, even if they are only on a two-year working visa with International Experience Canada (IEC). You can accomplish this by going to one of Calgary’s many registered agencies and providing identification, proof of residency, and proof that you’re an eligible worker.
The Alberta Health Care Insurance Plan (AHCIP) provides coverage for various medical services, including doctor visits. If you’re not insured by this plan, a quick visit to the doctor might cost you up to $100. This healthcare coverage provides excellent peace of mind, and the healthcare card arrives in the mail within a few weeks after you apply.
Gas and Electricity
A gas-powered furnace will most likely heat your Alberta home, blowing hot air via vents in the rooms. Winter bills in Alberta are much higher than summer bills due to the harsh winters. Total monthly energy and gas expenditures for a three-bedroom modern townhouse can range from $280 to $350 in the colder months to $100 to $200 in the summer.
In certain apartments and condominiums, the cost of heating and hot water is included in the monthly fee.
Telephone, Internet, and TV
An average monthly TV, phone, and internet package cost $120 and $180. Shaw, for example, charges $60 per month for 450 GB of high-speed internet. Telus offers TV and internet services for $25 per month for the first six months, then $130 per month after that. In some flats and condos, internet costs are included in the monthly rent.
Calgary is the largest city in Alberta and is about 80 kilometers from the Canadian Rockies. The Calgary Stampede, a 10-day outdoor extravaganza with fantastic shows, fantastic food, and non-stop entertainment, is recognized as Canada’s sunniest major metropolis. Calgary’s proximity to the mountains makes it an ideal home base for individuals who want to spend the winter skiing and snowboarding on the slopes of one of the many ski resorts.