Fall 2024 Brings Lower Interest Rates

Fall Brings Lower Rates & More Listings to Calgary Market.

Many home buyers sat out the usually busy summer market in Calgary, most likely put off by high mortgage rates, inflexible list prices, and slim pickings. However, with the recent mortgage rate cuts, rising new home construction and gains in new listings, we appear to be on a journey to healthier market conditions for Fall 2024.

This trend is expected to continue throughout the remainder of the year with higher-priced properties mostly driving up inventory, as affordable, lower-priced homes continue to be in short supply.

Following stronger-than-expected price gains earlier in the year, the Benchmark Price for a detached home in Calgary was $762,600; an average townhome price was $461,700; and apartment style condos came in at $346,500.

Mortgage rates may not fall much further

The best time to buy a home isn’t just about market conditions, but a highly personal decision based on individual circumstances. Canada’s housing market has been largely resistant to the previous two rate cuts received this year, but perhaps this one will move the dial. With borrowing costs now a cumulative 0.75% lower, that should start to be reflected in mortgage affordability, and potentially motivate buyers sitting on the sidelines.

However, there are a few things worth thinking about. For example, if you’re only waiting to buy because of the interest rate environment, consider the impact of holding out – home prices could rise as more buyers enter the market and you could miss out on the perfect home by holding out for more rate drops. Timing the market is challenging and the decision to buy or not to buy should be based on your long term goals and financial situation.

Home prices may ease going into the winter, but available inventory typically starts to dwindle as well. Late fall buyers can take advantage of both potentially lower prices and ample inventory before the market settles into the winter doldrums.

Well-priced and well-marketed homes still sell quickly

The affordability challenge means buyers are continuing to look for the best deals. 

While some listings linger going into the fall, well-priced and well-marketed homes are still selling fast. Easing sales, combined with gains in supply, pushed the months of supply above two months in August, a level not seen since the end of 2022.

Research also shows that modern features that signal a home is either brand new or recently renovated contribute to higher sale prices. Minor improvements that give your home a fresh “new construction” look, marketing tools like 3D Home Tours and Virtual Floor Plans on your listing, and strategic pricing can make all the difference to selling quickly and perhaps even with multiple offers.