Calgary's housing market is poised for a period of stability rather than dramatic growth, with experts predicting only modest price increases throughout 2024. While the city has experienced significant appreciation in recent years, the pace is expected to slow considerably as market conditions normalize.
What's Driving Calgary's Cooling Market?
Several factors are contributing to this more measured forecast. Rising inventory levels are giving buyers more options and reducing the intense competition that characterized previous years. Simultaneously, higher borrowing costs continue to impact purchasing power, creating a more balanced playing field between buyers and sellers.
The Calgary Real Estate Board's latest analysis suggests that while the market remains active, the frenzy has subsided. This shift represents a return to more sustainable growth patterns after the exceptional spikes witnessed during the pandemic recovery period.
Breaking Down the Numbers
According to market experts, the anticipated price increases will likely fall in the low single-digit percentage range across most housing categories. This represents a significant slowdown from the double-digit growth that defined Calgary's market through 2021-2023.
The adjustment period is seen as healthy for the long-term stability of Calgary's housing sector. It allows the market to absorb previous gains while accommodating new residents and economic growth at a more manageable pace.
What This Means for Different Market Segments
For first-time buyers: The cooling market presents improved opportunities to enter homeownership without facing bidding wars on every property.
For current homeowners: While rapid equity growth may slow, property values continue to appreciate, maintaining the substantial gains made in recent years.
For investors: The stabilized market conditions could signal a good entry point for long-term rental property investments, particularly with Calgary's strong rental demand.
The Broader Economic Context
Calgary's economic fundamentals remain strong, with population growth and employment trends supporting housing demand. However, the combination of increased housing supply and persistent affordability challenges is creating the perfect environment for moderated price growth.
Market watchers suggest this balanced approach could position Calgary as one of Canada's more stable housing markets through 2024, avoiding both the volatility of overheated markets and the declines seen in some other regions.
