Are Calgary House Prices Dropping?

As the economy slowly recovers from the pandemic, rates are also going back to normal. This means that interest and mortgage rates are starting to rise—and they will continue to do so as the year progresses.

Calgary’s real estate market has had record-breaking activity for the past year. Homes have been sold for higher prices than their asking price. These homes have also been sold much quicker compared to previous years.

Will this trend continue for the Calgary real estate market in 2022? Here’s what you need to know about buying a house in the city this year.

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Buying a Home in Calgary in 2022

Because rates are expected to increase throughout the year, house prices are also expected to climb. Pair that up with the trend of high demand and low supply—and you’ll get what the experts are talking about.

While home prices are on the rise, though, Calgary is still a good place to own a property. It is a city that caters to most needs of the people. The community is also friendly and diverse enough. Calgary also has breathtaking views and easy access to nearby attractions.

If you’re a city person, Calgary’s downtown area would be good enough for you. If you’re more of a small-town person, there are a lot of rural communities in Calgary as well. The point is, Calgary is a good place to live in for most kinds of people.

One of the best things about the city of Calgary is that it offers much cheaper properties than other bigger cities like Vancouver or Toronto. This is why more people from outside of Calgary are interested in buying a home in the city.

This trend is expected to continue this year, so expect that the market will be competitive. With more buyers interested in local properties in Calgary, intense bidding wars might become a norm.

As a buyer with a tight budget, you might be discouraged from purchasing a home. And that’s perfectly understandable. But if you’re looking to buy a home out of necessity, there wouldn’t be a better time than now to lock in your offer on a property.

Get in touch with a trusted real estate agent to discuss your options for housing this year.

Predictions for the Calgary Housing Market

Here are some of the things that experts predict will happen this year. Use these to decide for yourself whether buying a house is right for you.

Rates will be on the Rise

The economy has been recovering as expected. This means that the plans by the federal government to safeguard the economy are also on track. If nothing significant goes wrong, experts are predicting that the interest and mortgage rates will be on the rise.

But the question is, when will the rates rise? We can’t say for sure. But the sooner you buy a home, the more practical it would be.

If you have the means to afford a property, you might want to do so before the rates actually rise. Because once the rates rise, you might have a hard time looking for a good property that’s still within your budget.

Housing Supply will be Low

Because of the almost aggressive rate at which the housing demand increases, it’s almost impossible for the supply to keep up with it.

Even though there is a fair amount of new and active listings on the market, most homes get sold in less than a month. This takes them off the market and causes the housing inventory to remain low.

Buyers are also more active now more than ever. Many people having the means to buy a property only drives the demand further up.

It is expected to slow down a little, though. As interest and mortgage rates rise, some buyers may hold off on buying a property for now.

And because there is low supply, the home prices are only projected to go further up. Rising home prices may also slow the demand, even if only a little.

Sales will Remain High

Despite the expected increase in rates, sales will remain to be high this year.

The demand for housing in Calgary is still very much alive. More and more people are getting interested in buying a home in Calgary as it is a smaller market than others. This means that selling your home in Calgary could be profitable in 2022.

More people are moving away from big cities and into smaller towns. The remote and hybrid work setup that the pandemic has given rise to is the main reason for this. People can now afford to live away from their workplaces as they won’t have to report to the office every day, if at all.

This helps decongest larger cities, but it also makes local markets more competitive. People from major cities probably have enough saved up for when they finally buy a home. Flocking to a smaller market like Calgary helps them save a lot of money on housing.

They are also more inclined to offer more for a property since their budget could allow it. This is why even though house prices are increasing, the housing sales are still expected to remain high for 2022.

Calgary Real Estate

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The Calgary real estate market will continue to be hot this year, but it will still be a seller’s market.

Are Calgary house prices dropping? Not anytime soon. But that doesn’t mean that it’s not a good time to buy a property in the city right now.

Again, here are the predictions for the Calgary housing market in 2022:

• Interest and mortgage rates will be on the rise as the year progresses.
• Housing supply will be low, causing house prices to rise further and the market to be competitive.
• Sales will continue to be high, though, with houses selling quicker and for more.