August 2022 Market Update

We’ve made it to the end of the summer, and we’re excited to give you a market update for Calgary real estate as of September 2022.

This is typically one of the slower times of the year, but in reality it’s far from that. Last week alone there were over 500 sales, which is very strong. Earlier this spring, when things began to slow from the craziness at the beginning of the year, I was nervous that inventory would spike causing sales and prices to drop. Luckily this never happened — inventory never even made it up to 5,000. In fact, the inventory is now dropping and we’re currently below 4,500. This is a very good indicator that prices will likely remain strong. 

You may have noticed on the news that there’s lots of talk about markets crashing in Canada. However, Calgarians can rest easy as this is primarily affecting Ontario and BC, whose prices escalated at exorbitant rates and the market is now correcting itself. In Calgary, our price increases were much less drastic, so our market outlook is much more stable. Unlike Ontario and BC, our market is insulated for a few different reasons — namely, our prices are quite a bit lower, and the cost to buy is still below replacement costs.

This is a very safe time for buying, as prices likely won’t come down. In fact, we may have some escalation in the next year. Our market remains undersupplied, plus the 5-year fixed rate has come down a little bit — these are indicators of a very strong market and that we’ll hopefully see some price acceleration in the near future.

It’s safe to say that the price point we’re at now is our new norm for Calgary. We were oversold and experienced really slow years through 2015-2019, but the market has normalized and this is the new normal.

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This market update was brought to you by Jeff, Rod, Ray, Zoe, and Emma. From our team to yours, we’d like to thank you for your continued support.

Click the video above to view the full update for August 2022, and don’t forget to follow us on social media for real-time stats, tips, and new listings. If one of our listings catches your eye or you’re looking for more information on this month’s market, please don’t hesitate to connect with us directly at info@neustaedterteam.com or 403.208.0555.

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DISCLAIMER: The suggestions, advice, and/or opinions expressed in this video are simply perspectives based upon experience, and are not guarantees of set outcomes. Always consult with licensed professionals directly when doing a real estate investment transaction.