Calgary real estate infographic March 2024

2024 Calgary Real Estate Update: Mid-March Seller’s Market Insights

Mid-March Calgary Real Estate Market Update

As we venture into the heart of March, the dynamics of the Calgary real estate market begin to take shape, revealing trends and data crucial for both buyers and sellers. In this update, we dive deep into the current state of the market, unpacking interest rates, the absorption rate, and offering insights specifically for those focused on Southwest Calgary. Whether you’re stepping into the market for the first time or looking to make another investment, understanding these trends is key to navigating the waters of Calgary real estate successfully.

Interest Rates and Mortgage Insights

A critical factor for any buyer in the Calgary real estate market is understanding the landscape of interest rates. Currently, for a $400,000 property with a 5% down payment, the best five-year fixed mortgage rate from a Canadian lender stands at 4.79%. Comparatively, the best bank rate is slightly higher at 5.04%. This discrepancy highlights the value of engaging a mortgage broker who can offer more personalized service and potentially lower rates compared to traditional banks. With bond yields on the rise, indicating potential upward pressure on fixed mortgage rates, obtaining a pre-approval can lock in a rate for up to 120 days, providing stability in a fluctuating market.

Calgary’s Overall Market Dynamics

Looking at the broader Calgary real estate landscape through the lens of the absorption rate, which signifies the ratio of sold properties to active listings, reveals a market slightly below 100% absorption. This means nearly every property on the market finds a buyer, underscoring a seller-favored environment. Recent statistics have shown a notable increase in market activity, with sold properties outpacing new listings, further tightening the market.

SW Calgary Real Estate Spotlight

Delving into Southwest Calgary, my area of expertise, the dynamics mirror the city-wide trend but with nuances that prospective buyers and sellers should be aware of. The absorption rates and days on market in this area strongly favor sellers, with properties selling for an average of 102% of the list price. High-end homes, in particular, significantly influence these averages, with some properties selling for millions and affecting overall market statistics.

 

Calgary real estate infographic March 2024

Insights for Buyers and Sellers

In such a competitive market, buyers often wonder about the necessity of submitting an unconditional offer to be considered serious. While the market’s competitiveness cannot be understated, securing a full pre-approval for a mortgage significantly boosts a buyer’s position without necessarily conceding to all seller conditions. For sellers, preparing your home for sale and strategically timing its market entry can maximize return and ensure a smooth transition to your next property. It’s advisable to have your next purchase contract in place before listing, leveraging the seller’s market to your advantage.

Conclusion

The Calgary real estate market is bustling with activity, presenting opportunities and challenges for both buyers and sellers. Interest rates, while a constant variable, should be navigated with expert advice, particularly through the services of a mortgage broker. The overall market favors sellers, but with the right strategy, buyers can still find success. For those focused on SW Calgary, understanding the unique market trends in this area is crucial. As we move further into the year, staying informed and prepared will be key to real estate success in Calgary.

For more insights or assistance with your real estate needs in Calgary, feel free to reach out for a consultation. Navigating this market requires expertise and a strategic approach, whether buying or selling. Let’s work together to achieve your real estate goals in Calgary.