Pulse Of The City 06152024 - Mike Abou Daher

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Pulse Of The City

JUNE 2024 MARKET UPDATE

From Ancient Rome to Modern Homes: Lessons for Today's Buyers

Have you ever wondered how a single decision today could transform your future in ways you never imagined?

Welcome back to our monthly dive into Calgary's ever-changing real estate market. This month, we're seeing a fascinating blend of resilience and dynamic shifts that are keeping everyone on their toes. Whether you're a first-time homebuyer, a seasoned investor, or just someone curious about the market trends, we've got some exciting updates for you. So grab a coffee, get comfy, and let's jump right into it.

Alright, now that we've set the stage, let's get into the nitty-gritty of this month's market performance. From sales figures to new listings, there's a lot to unpack. Let's see how Calgary's market is holding up and what it means for you.

Market Performance

In May 2024, Calgary's real estate market showed a strong but slightly varied performance compared to the previous year. Total resale home sales reached 3,092, marking a slight decrease of 0.8% year-over-year. However, this figure remains significantly above, by 34%, the long-term trends for May, highlighting the continued buyer interest and market vitality.

Key Highlights:

Sales Figures: The slight decrease in total sales reflects specific challenges in the lower-priced segments, particularly detached and semi-detached homes, where limited supply has restricted transaction volumes.
New Listings: There was a substantial increase in new listings, which surged by 18.7% from last year to 4,333 units in May. This increase primarily occurred in the higher price ranges, which has helped balance the market somewhat but hasn't fully compensated for the scarcity in more affordable segments.
Inventory and Pricing: Despite the increase in listings, overall inventory levels remained nearly half of what is typically seen in May. The benchmark price for all residential properties was $605,300, showing a robust year-over-year growth of 10% and a slight increase from the previous month.

With the general market performance covered, it's time to dive deeper into the specifics. Each housing sector tells its own story, revealing unique trends and challenges. Let's break it down and see how different sectors are faring.

Sector-Specific Analysis

Detached Homes:

Sales and Prices: Sales in the detached homes sector have seen a 7% decline year-over-year, largely due to the scarcity of lower-priced homes. Despite this, the average price for detached homes has risen to $761,800, marking a 13% increase from last year, driven by high demand in the upper price brackets.

Inventory Levels: While new listings have increased, the inventory levels for homes priced below $600,000 continue to fall, representing only 13% of the market. This imbalance highlights a market that heavily favors sellers, with prices rising across all districts.

Semi-Detached Homes:

Market Dynamics: The semi-detached sector mirrors some of the detached market's trends but with its own nuances. Sales have slightly declined, yet the year-to-date figures show an 11% increase, indicating a strong cumulative performance for 2024.
Price Movements: The benchmark price for semi-detached homes reached $678,000, up by 13% from last year. This increase is consistent with the tight market conditions and a limited supply, particularly in affordable price ranges.

Row Houses and Apartments:

Sales Increase: Contrary to the detached and semi-detached sectors, row houses have seen a 9% increase in sales year-over-year. This sector benefits from a somewhat more balanced inventory, particularly in higher-priced categories.
Pricing Trends: The benchmark price for row houses has climbed to $462,500, which is nearly a 19% increase from the previous year, highlighting significant growth in this sector.

Apartment Condominiums:

Continued Demand: The apartment sector continues to attract buyers, especially those looking for more affordable housing options. Sales have risen by 19% year-to-date, with a notable 30% price increase in some districts.

Inventory and Pricing: Despite new listings helping to prevent a further drop in inventory levels, the market remains tight, with the benchmark price for apartments reaching $340,500, up by nearly 18% over last year.

Alright, now that we've looked at the performance of different housing sectors, let's zoom out a bit and explore the regional market insights. Understanding the local variations and how different areas around Calgary are performing can give us a clearer picture of the overall market dynamics.

Regional Market Insights

When examining the interplay between supply and demand across various districts and neighboring towns. This section highlights how these local variations impact overall market conditions.

Airdrie:

Market Activity: Airdrie saw a significant boost in new listings, which has helped balance the market slightly better than in previous months. Despite this, inventory levels remain low, with only 208 units available, which is half of what is typically seen in May.
Pricing Trends: The benchmark prices in Airdrie continue to rise, reflecting the ongoing demand. Prices range from $289,000 for apartment-style homes to $651,000 for detached properties, making Airdrie a relatively affordable option compared to Calgary.

Cochrane:

Sales and Listings: In Cochrane, the new listings for the month nearly matched the sales, with a sales-to-new listings ratio reaching 98%. This indicates a very tight market where nearly every new listing is being absorbed.
Price Impact: The tight market conditions have continued to drive price growth, with the total residential benchmark price increasing by over 1% from last month and 10% from last year.

Okotoks:

Inventory Challenges: Okotoks continues to face challenges with exceptionally low inventory levels, with only 84 units available. The inventory is 55% lower than what is traditionally available, putting significant upward pressure on prices.
Market Prices: The benchmark price in Okotoks rose by 1% over last month and is more than 8% higher than last year, illustrating the impact of limited supply on pricing dynamics.

Would You Like To Know How Much Your
Neighbour's Home Listed or Sold For?

Click your city below and access each Community's full Real Estate Stats for the past 12 months.

Calgary & Airdrie

Now that we've explored how different regions around Calgary are performing, let's take a step back and look ahead. Forecasting the market trends can help us understand what to expect in the coming months and how to navigate the opportunities and challenges that lie ahead.

Forecast for Calgary's Real Estate Market

As we project forward for the remainder of 2024, the Calgary real estate market is expected to continue demonstrating resilience and dynamism. Here are the anticipated trends and shifts that could influence market dynamics across various segments and regions:

Sales Trends:
The market is likely to maintain strong sales volumes, however, the availability of affordable housing will continue to be a critical factor, particularly in attracting first-time homebuyers and retaining existing residents looking to upgrade.

Listing Projections:
New listings are expected to rise moderately as sellers respond to sustained price increases and favorable market conditions. This trend will be particularly pronounced in higher-priced segments, where the inventory has been more responsive to market demands.

Price Movements:
Overall, prices are projected to continue their upward trajectory, though at varying rates across different districts and housing types. The greatest increases may be seen in areas with the most acute inventory shortages, which are likely to persist through the year.

Market Shifts:
Anticipate shifts towards more balanced conditions in some sectors as new constructions and developments come to fruition, providing much-needed inventory to the market. However, the market will remain competitive, especially in more affordable segments where supply constraints persist.

Impact on Market Segments:
First-time buyers may find increased opportunities in condominiums and row houses, where price points are generally lower. Investors and repeat buyers will need to navigate a landscape of rising prices and competitive bidding, particularly in popular neighborhoods and the detached home market.

With these projections in mind, let's wrap up our discussion with a few key takeaways and some final thoughts.

As you can see, understanding the nuances of Calgary’s real estate market can make a significant difference whether you’re buying or selling. It’s not just about finding a home; it's about making a wise investment that will serve you well in the future. With all these market dynamics in play, there's one crucial tip that can help guide your decisions and ensure you're making the most out of your real estate ventures.

Consider Resale Value Even if you plan to stay long-term, consider the property's resale value. Look for features that are generally appealing to a wide range of buyers. This doesn’t mean you have to sacrifice your personal preferences, but rather, choose a home that balances your needs with elements that will make it attractive when it’s time to sell. Think about factors like location, neighborhood amenities, and the overall condition of the property. These aspects not only enhance your living experience but also add significant value when it comes time to put your home back on the market.

Having said that… let me share with you something that perfectly illustrates the importance of thinking long-term and considering the value of what you’re investing in. It’s a tale from history that has some valuable lessons for us today.

Picture this: It's 70 AD, and Emperor Vespasian decides Rome needs a new entertainment hotspot—something that makes gladiator battles look more like backyard wrestling. So, he commissions the Colosseum, a massive amphitheater that would host epic battles, dramatic reenactments, and even mock sea battles (yes, they could flood the arena). Talk about an all-in-one entertainment venue!

But here's the twist: Vespasian didn't just want a flashy structure. He wanted something that would stand the test of time and outshine any future contenders in the architectural arena. So, what did he do? He called in the best architects and engineers of the time, and they got to work with a game plan that would make any modern-day contractor blush with envy.

First off, they used a unique concrete mix that was far ahead of its time. This wasn't your run-of-the-mill sidewalk cement. No, this concrete contained volcanic ash, which made it incredibly durable and resistant to cracks. Modern scientists are still scratching their heads over how this ancient recipe has held up so well over millennia.

And the design? Oh, it was ingenious. The Colosseum's elliptical shape not only provided excellent sightlines for 50,000 spectators but also distributed the weight evenly, preventing any one part of the structure from bearing too much stress. This foresight in design ensured that the Colosseum could withstand earthquakes and the wear and tear of time.

But the Colosseum wasn't just a marvel of engineering. It was a cultural icon, a symbol of Rome's power and ingenuity. Vespasian knew that by creating something so spectacular and enduring, he was cementing his legacy for centuries to come.

Fast forward to today, and the Colosseum is still a top tourist attraction, drawing millions of visitors each year. Its lasting appeal serves as a powerful reminder: when you invest in quality and think long-term, your efforts can outlast empires.

So, next time you're considering a big purchase, think like Vespasian. Consider the long-term value and appeal of what you're buying. Who knows? You might just create something that stands the test of time—maybe not 2,000 years, but hey, it's a start!

Now that we've seen how long-term thinking can lead to incredible results, let's talk about how I can help you achieve your real estate goals. Whether you're looking to buy, sell, or invest, having the right guidance can make all the difference. Let me tell you about the services I offer that can help you navigate the Calgary real estate market with confidence.

Personalized Consultations: Every real estate journey is unique. Let's discuss your specific needs, goals, and questions. We'll provide tailored advice that considers the latest market trends and your personal circumstances.

Market Insights: Stay ahead with up-to-date information and analysis. Our deep understanding of the Calgary real estate market can help you navigate its challenges and opportunities.

Strategic Planning: Whether you're buying, selling, or investing, a well-thought-out strategy is key. We'll work together to devise a plan that maximizes your success in the current market.

So if you’re curious to learn more, just head over to PlanWithMike.ca select a day and time that works for you and let’s have a chat. Or better yet, reach out to me directly text/call at 4038099386.

Thank you so much for tuning in today! If you found this information helpful, please share it with anyone who might benefit from it. If you have any questions or need personalized advice, feel free to reach out to me directly. I'm here to help you every step of the way. Until next time, stay informed and stay ahead!