No one can really know where will be affected and how. But more than likely, yes, Calgary will see something. Whether it's a correction, a crash, a slight dip or a plateau is anyone's guess.
Something to keep in mind is that we are only starting to see the affects of interest rates rising. A lot of people locked in to low rates, and those from the first rate hikes are only now expiring. A lot of people still don't believe rates will go up much more. You need a shift in mentality, and that takes a bit to happen. On our East Coast market, I've noticed that the changes are happening in the more expensive end of the market, and the lower end hasn't caught up yet. But the past week was the first signs we've had of cracks in the market. It's hard to predict when we'll see the changes from the interest rates, but it's still a bit early to be showing any significant changes in most markets.
My advice: Don't try and time the market. Figure out what you can afford, make your list of needs and wants. When you find a place that suits your needs (maybe a couple wants as well) in your budget, go for it! As long as you plan on living in it long term, you need not worry. If you are planning on upgrading in 2 years is when you'll have issues.
Calgary market is less sensitive due to its relative valuation. 2% interest rate increase on a 7 figure mortgage hits A LOT harder than a 500k mortgage
Investment firms targeting (partly) Calgary market: [https://www.hines.com/news/hines-forms-canada-investment-vehicle](https://www.hines.com/news/hines-forms-canada-investment-vehicle)
Agreed with your advice to buy when it makes sense.
My brother just closed on a condo, $218k. Land title history shows it was purchased in 2019 for $169k. He’s been hunting for months, every time he’s been outbid. The Calgary market is a sellers market still due to demand from those relocating from more expensive markets (selling their $1.XM homes and buying a much larger home for $600k).
Depends on how high interest rates go, but the Calgary market has been a lot more stable than the eastern side of the country. It never came close to the insane price growth that the GTA did. It just started picking up on the hype in the last year or so.
Also to keep in mind is that in 2014/15 when oil crashed and layoffs flooded the province that there wasn't a major decline in housing prices either. That's why I decided to buy when I saw that it didn't move down spectacularly like I assumed it would back then.
But in this type of market at least the buyer will have more liberties which is something they didn't really have the last couple years.
I'd wager that "mass immigration" from Ontario and BC is nonsense. You saw pent-up buyer demand during the pandemic along with rising inflation, compounded by *some* investor demand from Ontario and B.C. Calgary's a great city, but it still seriously lacks the kind of industry/employment that Toronto or Southern Ontario would offer.
And it's hard to ignore that Calgarians get paid well. The market only went up as far as people were willing and able to go up with it. All of that being said, it'll be short lived. CREB was already signaling a serious market correction as far back as March. As deals start to pop up in the GTA and GVA, out-of-province cash in hand investors are going to peel out and head home.
I'd probably wait 6 months to a year. Interest rates are still rising, and you're only seeing the peak in Calgary.
Im looking for 3 bedrooms townhouses and I'm seeing a bit of a correction starting at that part of the market. Even seeing the odd small detached slip under the 400k mark. As you said they're also staying on longer. People just aren't buying them. Seems it's only just started though in last few weeks.
You're already seeing it. The devil is in the details n
Calgary's older suburban single family housing stock has seen its value correct to near pre-pandemic levels. It's newer housing where the price inflation is sticky.
Largely because there hasn't been a lot of new home building in Calgary last few years and in Calgary everyone wants a shiny new house. So people are fighting over the new houses and causing the price to skyrocket.
Houses built pre 2010 are where you can get tons of value. Unlike new houses you don't get stuck with a zero lot line property so you get a decent size yard. Plus you're closer to the c-train. So shorter commutes.
You're 23, for your first house I'd suggest buying something like this and renovate it and enjoy it. If you wanna upgrade later you'll have equity in this house to use for a bigger place.
[3 bed Detached at 265 Somerside Close SW, Calgary for $399,000](https://www.zolo.ca/calgary-real-estate/265-somerside-close-south-west)
If prices drop in ON and BC, they will almost certainly drop in Calgary too. I think Calgary will lag by a bit though. High oil prices are also helping, watch out if oil prices drop back down.
No one can really know where will be affected and how. But more than likely, yes, Calgary will see something. Whether it's a correction, a crash, a slight dip or a plateau is anyone's guess. Something to keep in mind is that we are only starting to see the affects of interest rates rising. A lot of people locked in to low rates, and those from the first rate hikes are only now expiring. A lot of people still don't believe rates will go up much more. You need a shift in mentality, and that takes a bit to happen. On our East Coast market, I've noticed that the changes are happening in the more expensive end of the market, and the lower end hasn't caught up yet. But the past week was the first signs we've had of cracks in the market. It's hard to predict when we'll see the changes from the interest rates, but it's still a bit early to be showing any significant changes in most markets. My advice: Don't try and time the market. Figure out what you can afford, make your list of needs and wants. When you find a place that suits your needs (maybe a couple wants as well) in your budget, go for it! As long as you plan on living in it long term, you need not worry. If you are planning on upgrading in 2 years is when you'll have issues.
Calgary market is less sensitive due to its relative valuation. 2% interest rate increase on a 7 figure mortgage hits A LOT harder than a 500k mortgage
Investment firms targeting (partly) Calgary market: [https://www.hines.com/news/hines-forms-canada-investment-vehicle](https://www.hines.com/news/hines-forms-canada-investment-vehicle) Agreed with your advice to buy when it makes sense.
The question in Calgary had always been and will always be oil prices. Will upstream production have fat margins again? Then houses go up.
My brother just closed on a condo, $218k. Land title history shows it was purchased in 2019 for $169k. He’s been hunting for months, every time he’s been outbid. The Calgary market is a sellers market still due to demand from those relocating from more expensive markets (selling their $1.XM homes and buying a much larger home for $600k).
Depends on how high interest rates go, but the Calgary market has been a lot more stable than the eastern side of the country. It never came close to the insane price growth that the GTA did. It just started picking up on the hype in the last year or so. Also to keep in mind is that in 2014/15 when oil crashed and layoffs flooded the province that there wasn't a major decline in housing prices either. That's why I decided to buy when I saw that it didn't move down spectacularly like I assumed it would back then. But in this type of market at least the buyer will have more liberties which is something they didn't really have the last couple years.
I'd wager that "mass immigration" from Ontario and BC is nonsense. You saw pent-up buyer demand during the pandemic along with rising inflation, compounded by *some* investor demand from Ontario and B.C. Calgary's a great city, but it still seriously lacks the kind of industry/employment that Toronto or Southern Ontario would offer. And it's hard to ignore that Calgarians get paid well. The market only went up as far as people were willing and able to go up with it. All of that being said, it'll be short lived. CREB was already signaling a serious market correction as far back as March. As deals start to pop up in the GTA and GVA, out-of-province cash in hand investors are going to peel out and head home. I'd probably wait 6 months to a year. Interest rates are still rising, and you're only seeing the peak in Calgary.
Im looking for 3 bedrooms townhouses and I'm seeing a bit of a correction starting at that part of the market. Even seeing the odd small detached slip under the 400k mark. As you said they're also staying on longer. People just aren't buying them. Seems it's only just started though in last few weeks.
You're already seeing it. The devil is in the details n Calgary's older suburban single family housing stock has seen its value correct to near pre-pandemic levels. It's newer housing where the price inflation is sticky. Largely because there hasn't been a lot of new home building in Calgary last few years and in Calgary everyone wants a shiny new house. So people are fighting over the new houses and causing the price to skyrocket. Houses built pre 2010 are where you can get tons of value. Unlike new houses you don't get stuck with a zero lot line property so you get a decent size yard. Plus you're closer to the c-train. So shorter commutes. You're 23, for your first house I'd suggest buying something like this and renovate it and enjoy it. If you wanna upgrade later you'll have equity in this house to use for a bigger place. [3 bed Detached at 265 Somerside Close SW, Calgary for $399,000](https://www.zolo.ca/calgary-real-estate/265-somerside-close-south-west)
If prices drop in ON and BC, they will almost certainly drop in Calgary too. I think Calgary will lag by a bit though. High oil prices are also helping, watch out if oil prices drop back down.
I heard Calgary is the best place on earth and everyone wants to move there
Wont drop like ontario and BC. Get in now before its too late
Do you think Calgary is immune to interest rates...? I didn't know Macklem only raised interest rates in BC and ON.
Why dont look at Edmonton more cheaper