Population Growth and the “Hot Start” in Calgary

The beginning of spring in Alberta marks the beginning of a new real estate season, in a sense. The market picks up when the weather warms simply because it is easier and less unpleasant to buy or sell without ice, snow, and the cold to complicate listing photography, showings, and the moving process. Naturally, as demand for housing increases, so do prices. A recent report on Alberta population growth shows that over 200 000 people have relocated to Alberta since the beginning of 2023 due to the lower housing prices in Alberta, at least relative to the rest of Canada. Calgary, being the largest city in Alberta, tends to draw a lot of attention from people looking to move to Alberta, which is a main contributing factor to the rising home prices in and around Calgary. 

Market reports show that prices rose around $12 000 from February to March, from an average of $585 000 to $597 000 for single family homes. These prices, coming up at the beginning of spring are what is giving the current market something called a “hot start.” High prices at the beginning of the season make it a seller’s market out of the gate, and the perfect time to think about selling. Another reason why we are entering into a fruitful seller’s market is the high competition. High demand and low supply mean that there will be more buyers looking at multiple houses, which can lead to an increase in the price of the house for sale. While these prices can seem foreboding to buyers, the upside is that Canadian banks are looking to lower lending rates before the fall, which means that anyone obtaining a variable-rate mortgage in the near future will likely see a decrease in cost. So, while purchasing costs may be high, there is an advantage to securing a mortgage at this time because of the projected decline in lending rates. 

For those who are considering buying, but would like to know more about different types of mortgages, stay tuned for a post regarding that exact matter at the end of May!