Calgary Real Estate 2022

As we head into the New Year, we would all like some certainties, to feel the ground under our feet and know where we are heading.

The rollercoaster of Covid continues to take its toll on every aspect of our lives. The one thing that has grounded so many of us throughout the pandemic is our homes. They’ve become our safe harbour in the storm. With a fourth wave of Covid on us, our homes are more important than ever, and this is one of the factors why Calgary’s housing market is forecast to thrive this year. So, what can we expect?

Prices will rise

Yes, prices are still going up but at a slower pace than 2021. Last year saw Calgary’s real estate market make a big comeback with sales coming close to all-time records. Prices too rebounded and rose by 10%. This year is expected to be another good year. Many buyers are keen to buy a new home while interest rates are low. They drove sales higher in the last few months of 2021 and are expected to do the same at the start of this year. Experts believe the average price of a detached home in Calgary will hit $689,000 in 2022.

Low inventory

The bottom line is that there has never been so few single family detached homes on the market. The North West is one of the areas in Calgary with less than a months supply of homes available. The lack of inventory was one of the big factors pushing up prices last year. With no short term solution in sight, inventory shortages are expected to continue this year and to continue pushing up home prices. It’s great news for sellers as it puts them in the driving seat.

Interest Rates Rises

Interest rates are expected to go up this year. If interest rates go up so do mortgage rates and the cost of borrowing. Here’s what’s happening. Goods especially foods are costing more and that’s driving up inflation. So the Bank of Canada is considering raising interest rates to control inflation. It had said it could start raising interest rates in the spring but some believe it’ll be delayed because of the Omicron variant. Any interest rate increase is expected to be small and not stop the rise of the real estate market.

The good news and the bad…

So food prices, home prices and likely borrowing costs are all going up this year. If you’re a buyer already struggling to get their foot on the ladder then the situation is about to become even tougher. With few homes on the market, buyers will be feeling the squeeze from all sides. However, Calgarys home prices are still lower than many other big cities in the country. Its relative affordability means buyers here can still meet more of their wish list than elsewhere and that’s attracting people to the city.

Sources: Royal Le Page Benchmark, RBC Economics, Calgary Real Estate Board, Bank of Canada, TD Bank

Posted by Kirby Cox on


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