Calgary Real Estate Blog

If you’ve seen anything in the news about residential real estate lately, it’s probably been doom-and-gloom talk about how sales in January were down nearly 40 percent from January 2014 – you know, the year of record sales when I barely had time to grab a coffee between appointments many days. That kind of talk sells newspapers (at least, as much as newspapers sell these days) and plays nicely into the narrative that Alberta’s on the cusp of an economic apocalypse, but the truth is, the market’s doing just fine, and should continue to do so throughout the year.

We’ll likely continue to see lower year-over-year sales and price increases in residential homes over the next few months, which is to be expected: not only is the lower oil price slowing our economy, but Calgary went from a red hot sellers’ market early last year to a more balanced and sustainable one in the latter half. That balance – having the right number of properties for sale in relation to the number looking to buy – is ideal, and healthy. Without needing to rush buying decisions, but still having plenty of selection from which to choose, Realtors like myself can better help home buyers find homes that meet their needs and satisfy their wants. (For more on buyers’ vs sellers’ markets, and some consideration on when is the right time to sell your home, visit here.)

Despite the actual number of sales going down in January, there was both an increase in the number of properties listed and a healthy 7.7 percent increase in the year-over-year benchmark selling price. Nothing to worry about on that front.

Could the market slow down significantly? Sure, it’s possible, especially with the talk of major cuts across the board in the next provincial budget. People who were on the fence about selling and are now afraid prices are going to crater will go ahead and list their homes to beat the rush, while others may decide to downsize as their personal financial situation changes. And without a doubt, this year’s market won’t be nearly as hot as 2014’s. Still, as you’re reading or watching news stories about the dire future of Calgary real estate, take a moment to remember the solid fundamentals on which our housing market is based; there’s no bubble to be found here, which means there may be a slowdown, but there won’t be a crash.

Questions about the right time to buy and sell in our current economy? Contact me!

Also: the Calgary Home + Garden Show is quickly approaching, and organizers have sent out a Valentine’s Day promotion. To buy tickets for the event (taking place February 26-March 1 at the BMO Centre) and save $5 in the process, click here and use the promo code LOVE. Offer is valid until February 18.

It’s from a few months ago, but I thought it still worth drawing readers’ attention to: here’s an article from January’s Financial Post positing that so-called stubborn sellers are preventing a burst real estate bubble in Canada. It’s a good read.

Now this doesn’t really speak specifically to Calgary’s situation – we continue to set sales and price records, and I continue to work my butt off – but it does say something about the market’s health nationally. Sales are down in much of the country, yet prices aren’t really dropping. Without finding themselves suddenly underwater like so many unfortunate souls in the U.S., Canadians aren’t motivated to drop their selling price to move their properties quickly, and that means the market as a whole is remaining pretty stable. Barring a massive wave of unemployment or interest rates jumping up several points overnight, the spectre of a bursting real estate bubble in this country is, in my opinion, wildly overhyped.

Just one man’s opinion, of course, but it’s hard to see the future as dire when I so rarely get a day (or night) off.