Everyone used to flock to Calgary.. Not so much now

Like much of Canada, Calgary’s real estate sales were significantly down in July 2022. There were 2254 home sales in July, down 21% from the previous month’s 2314 sales and 3% compared to July last year. This is the second consecutive month of slowing sales as the red-hot real estate market of the previous few years continues to cool off. The number of new listings coming onto the market in July was 3174, almost 4% down from the prior year. The average home price was $491 392 in July, down 5% from June but slightly up from last July last year. 

Condo and Townhouse apartments 

Interestingly, the number of Condo and Townhouses sold are up very significantly year over year. Townhouse sales are up 23%, while condo sales are up 48%! There appears to be a lack of supply of lower-priced detached and semi-detached houses on the market, and some of these consumers seem to be purchasing condo and townhouse apartments instead. This could be because the price of detached and semi-detached homes may be out of reach for consumers who are still desperate to get into the real estate market but are not able to afford detached or semi-detached houses. 

Interest rates and inflation 

Two primary drivers of the slowdown we continue to see in Canada’s housing market are interest rates and inflation. The low interest rate environment of the last approximately two years has ended, and money is not as cheap to borrow as it was. Homebuyers are therefore more selective in purchasing homes, particularly when loaning money. Inflation continues to be a concern for Canadians as the cost-of-living increases, and the fear of meeting monthly commitments and household expenses becomes a challenge for many. Because of this, buyers are more tentative about borrowing money with a higher interest rate and need to be sure that the monthly affordability is well within their budget. 

Selling is still possible 

If you want to sell, do not be discouraged! There are still many willing buyers in this market, although buyers have more options now and are giving a lot more thought to their purchases. It is essential to make sure that your listing stands out above the rest. One of the best ways to achieve this is by utilizing good real estate photography. Snaphouss is your real estate photography expert, offering packages starting from just $99. There is no reason not to get your property sold. Reach out to us today!