1. The Great Affordability Squeeze in Canada ? Not in Calgary !
While Calgary Real Estate prices increased in 2021, the YYC market under-performed compared to other Canadian metro-markets and remains one of Canada's more affordable cities. As home ownership becomes out of reach in many parts of the country, I believe this will lead to increased migration to Alberta, including Calgary.
2. Prices are Trending Upward
1. Low Inventory Levels - seen mostly in the single family and attached markets. Entering 2022, only 988 attached/detached homes are on the market, which is the lowest number since 2006 when we sat at 934 properties. (coincidentally 2006 turned out to be a record year in terms of price gains in the Calgary marketplace!)
2. Strong Demand- with over 27,000 sales in 2021, demand for Calgary housing was at its highest level in 7 years. All indications lead to demand remaining strong into 2022.
3. Inflation - Canada's inflation rate remains at a 18 year high and this is expected to continue to be a theme in 2022. Cost of goods relative to the housing market will continue to increase in the coming year. Historically, as inflation rises, so do Real Estate prices.
3. Inflation - Canada's inflation rate remains at a 18 year high and this is expected to continue to be a theme in 2022. Cost of goods relative to the housing market will continue to increase in the coming year. Historically, as inflation rises, so do Real Estate prices.
3. Alberta Economic Recovery
Alberta’s economy has recovered more quickly than originally expected. The province has gained more than 103,000 jobs since the start of 2021 and recovered nearly all of the jobs lost during the pandemic. Real Gross Domestic Product (GDP) is now expected to rebound by 6.1% in 2021, a notable increase from the 4.8% growth predicted in Budget 2021.
In 2022, Alberta’s real GDP is expected to rise by an additional 5.1%, bringing Alberta’s economy back to levels not seen since 2014
4. Interest Rates are on the Rise
Below are the latest rate forecasts from the Big 6 banks. Averaging the forecasts, the Big 6 banks expect the overnight rate to rise about 1% by the end of 2022, meaning four quarter-point rate hikes by the Bank of Canada.Looking ahead to the end of 2023, analysts from the big banks are calling for an additional three rate hikes, bringing the overnight rate to 1.75%.
5. Love where you Live
If the past few years have taught us anything, it is to enjoy and love where you live. As Calgarians, I think we all know how good we have it. Here are a few things I personally love about Calgary;
Sunshine
Pathways and Green Space
Low Commute Times
Access to the Mountains
Parks
Our Industries and Innovation
Outdoor Recreation
The Bow River
Our Communities
Local Business
Amazing People
The World-Class Golfing, Skiing & Fishing
Our passion for Amateur Sports
Access to the Mountains
Parks
Our Industries and Innovation
Outdoor Recreation
The Bow River
Our Communities
Local Business
Amazing People
The World-Class Golfing, Skiing & Fishing
Our passion for Amateur Sports
and of course our Real Estate !
As always, I look forward to making putting my 23 years of experience to work for you. Let's connect here.
Ross Aitken
RE/MAX Real Estate (Central
