January 2024
Market Update

Hello everyone! We hope you're off to a fantastic start in 2024. As we step into this new year, we want to take a moment to reflect on Calgary's remarkable resilience in 2023.

Last year, we did observe a slight dip in sales compared to the peak of the previous year. However, it's essential to note that despite this dip, the Calgary real estate market remained robust. We recorded nearly 28,000 total transactions, surpassing both long-term sales trends and pre-pandemic levels.

To put it simply, if we had more available properties to sell, those transaction numbers would undoubtedly have been higher. The market is currently grappling with a shortage of supply, which has played a significant role in shaping these statistics.

One of our primary concerns is affordability. When I purchased my first house back in 1999, my 5-year fixed-rate mortgage stood at 5.5%. Today, that same mortgage rate hovers around 5.1%. While the difference in interest rates might not seem substantial, what has undergone a significant change is the price of homes. In the past, it took approximately three years' worth of an average salary to afford a house. In contrast, today's house prices would require six, seven, or even eight times the average salary, marking a substantial increase in affordability challenges.

However, it's important to emphasize that Calgary continues to be an incredible place for quality of life and economic opportunity. Alberta, in my opinion, remains a solid choice for real estate investment.

If you have any questions or would like to discuss these market trends further, please don't hesitate to reach out. We're here to provide you with insights and guidance. Have a fantastic week ahead!

—————————————

This market update was brought to you by Jeff, Ray, Emma, and James. 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 2023, 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.

—————————————

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.