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Calgary housing market expected to stabilize in 2023 The Calgary Real Estate Board (CREB®) has released its 2023 Forecast Calgary and ...
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The interior design style known as Bauhaus is guided by the belief that materials should not be hidden ...
Calgary housing market expected to stabilize in 2023
The Calgary Real Estate Board (CREB®) has released its 2023 Forecast Calgary and Region Yearly Outlook Report. The report, which is prepared by CREB® Chief Economist Ann-Marie Lurie, provides a detailed analysis of the economic and housing market trends in Calgary and surrounding areas for the upcoming year.
According to the report, elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record high in 2022. However, with forecasted sales of 25,921 in 2023, levels are still expected to be higher than the activity reported before the pandemic.
“Higher commodity prices, recent job growth, record high migration and relative affordability are expected to help offset some of the impacts higher lending rates are having on housing demand. At the same time, we are entering the year with low supply levels which are expected to prevent significant price declines in our market,” said Lurie.
Supply levels declined to the lowest levels seen in over a decade as gains in higher price properties did not offset the supply declines occurring in lower-priced homes. This has left our market in a situation where lower-priced properties still face sellers’ market conditions while higher-priced homes are seeing more balanced to buyers' market conditions.
The shift between supply and sales by price ranges is expected to create divergent trends in prices depending on property type and price range. Overall, price declines in the upper end of the market are expected to offset gains reported in the lower ranges, causing an annual decline of less than one per cent.
“With much of the pandemic behind us, 2023 reflects more of an adjustment into more typical conditions and a pause on price gains following 12 per cent growth in 2022. While other markets in the country are forecasted to see more significant price and sale declines in 2023, Calgary did not face the same gains as those markets, as prices only recovered from the 2014 highs in 2021,” added Lurie.
Click here for the full CREB® 2023 Forecast Calgary and Region Yearly Outlook Report.
On January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the “Foreign Buyers Ban”) came into effect in Canada and will be in place for two years.
As a company, Sotheby’s International Realty Canada expects that we will see continued interest and demand for Canadian real estate from purchasers from abroad who will remain fully qualified to purchase a home in Canada.
WHO DOES THE BAN TARGET?
- The legislation targets non-Canadian citizens, as well as non-Canadian commercial entities, i.e., those formed not pursuant to the laws of Canada or one of its provinces, or an entity formed under Canadian or provincial laws with direct or indirect ownership by a non-Canadian, where that ownership amounts to 3% or more of the value of the entity’s equity or voting rights.
- However, there are several exemptions subject to varying and complex conditions.
WHO IS EXEMPT FROM THE BAN?
The ban does NOT apply to:
- Canadian citizens or permanent residents.
- The spouse or common-law partner of a Canadian citizen, permanent resident, person registered under the Indian Act, or refugee.
- Non-Canadians who are looking to rent a residential property in Canada.
- Temporary residents enrolled in a program of authorized study at a designated learning institution (as defined in Immigration and Refugee Protection Regulations), who meet the eligibility criteria.
- Temporary residents with a valid work permit or authorization to work in Canada, who meet the eligibility criteria.
- Refugees, temporary residents who are proven to be fleeing conflict, and those making a claim for refugee protection.
- Accredited members of foreign missions in Canada.
Important: these exemptions are subject to varying and complex conditions. Non-Canadian clients who may be exempt, must be referred to an appropriate third-party professional (e.g. a lawyer or accountant) to determine their eligibility.
WHAT PROPERTY TYPES ARE INCLUDED IN THE BAN?
- The legislation applies to residential properties, including detached homes or similar buildings, as well as semi-detached houses, rowhouse units, residential condominium units and other similar premises, that are located in a census metropolitan area or a census agglomeration. A census metropolitan area has a total population of at least 100,000 people, with at least 50,000 living in its core, and a census agglomeration has a core population of at least 10,000 people.
- This means that the Foreign Buyers Ban does not apply to non-Canadians buying a residential property outside of a census metropolitan area or census agglomeration.
WHAT PROPERTY TRANSACTION TYPES ARE AFFECTED BY THE BAN?
- The regulations apply to purchases, defined as a direct or indirect acquisition of a right or interest in residential property.
- It does not apply to property acquisitions as a result of death, divorce, gifts, or a separation.
WHAT ARE THE PENALTIES FOR VIOLATING THE FOREIGN BUYERS BAN?
- There are significant penalties for violating this legislation. Any person knowingly assisting or attempting to assist a non-Canadian in the purchase of a prohibited property may be subject to a summary conviction offence under the Criminal Code and a fine of up to $10,000.
In a constantly evolving market, let us help you make informed decisions. We offer personalized attention tailored to your needs, regardless of the neighbourhood or price of your home. Ask us about local market conditions and opportunities, and let us prepare you for your next move.
This post was published on January 16, 2023 on Insight Blog. For the most up-to-date and accurate information, and to determine your eligibility, we encourage clients to contact their real estate agent or an appropriate third-party professional, such as a lawyer or accountant.
As we recover from the Holidays, it's hard to believe we need to start thinking about preparing our home for sale if we want to maximize its value in the spring selling season.
To capture the imagination of buyers who'll emerge from their hibernation this spring, you should start working now.
Your efforts will return dividends: pristine properties are always the fastest to sell, no matter the market's mood.
As an experienced agent in our neighborhood, I believe buyer confidence is likely to return as the winter chill gives way to the warmth and optimism of spring.
It will be a new beginning, especially if the Federal Reserve eases back on the past 12 months of rate rises, as it has indicated.
For buyers, this could be an optimal time if they have an income to sustain the current mortgage costs. And as a seller, you know it only takes two competing buyers to push your sales price higher.
Below are seven great ideas for preparing your home for a spring sale.
Plan early
Make a realistic assessment of improvements required to get your property in tip-top condition. An agent should guide you on upgrades that attract buyer interest and those that won't. Don't waste money on work that buyers won't care about.
To-do list
Itemize each repair your home requires. You'll undoubtedly be able to do some of the jobs, but hire a contractor to undertake those requiring a certain skill level. Don't let amateur finishing undermine the value of your home at a critical time.
Major upgrades
Discuss with your agent whether it's worth investing in a new kitchen or remodeling your bathroom. While such renovations may push the price higher, will you get a return on investment? Your agent should help answer that question.
Deep clean
A significant undertaking, you may want to hire professional cleaners to go through your home from top to bottom. If you favor that course of action, book them so they'll complete the task just a few days before your property goes on the market. If you DIY, give yourself plenty of time.
Do a declutter
Ahead of the cleaning project, you should declutter like crazy. Buyers are looking for spacious living areas and bedrooms, and lots of storage space. If your home is full to the gills, now you have your excuse for a big throw-out.
Flower power
Remember, you're selling in spring, so make your garden a picture. Feed and mulch the flowerbeds to ensure your plants look their best. Consider buying colourful spring blooms to brighten the outside. Put your initial focus on the front yard to create a fabulous first impression.
“Housing market conditions have changed significantly throughout the year, as sales activity slowed following steep rate gains throughout the later part of the year,” said CREB® Chief Economist Ann-Marie Lurie. “However, Calgary continues to report activity that is better than levels seen before the pandemic and higher than long-term trends for the city. At the same time, we have faced persistently low inventory levels, which have prevented a more significant adjustment in home prices this year.”
Residential sales in the city slowed to 1,648 units, a year-over-year decline of 22 per cent, but 12 per cent above the 10-year average.
The pullback in sales over the past six months was not enough to erase gains from earlier in the year as year-to-date sales remain nearly 10 per cent above last year’s record high. The year-to-date sales growth has been driven by a surge in both apartment condominium and row sales.
“Easing sales have been driven mostly by declines in the detached sector of the market,” said CREB® Chief Economist Ann-Marie Lurie. “Higher lending rates are impacting purchasers buying power and limited supply choice in the lower price ranges of the detached market is likely causing many purchasers to place buying decisions on hold.”
A decline in sales was met with a pullback in new listings and inventories fell to the lowest level reported in November since 2005. The pullback in both sales and new listings kept the months of supply relatively tight at below two months. The tightest conditions are occurring in the lower-price ranges as supply growth has mostly been driven by gains in the upper-end of the market.
November sales eased mostly due to the significant pullback in detached sales. While sales this month are down over last year’s record levels, overall activity is still far stronger than long-term trends and year-to-date sales are still on pace to reach a new record high.
New listings did improve over the previous year, thanks to gains in row, semi and apartment style product. While the growth in new listings did cause November inventories to rise over last year’s low levels, inventory levels remain nearly 40 per cent below long-term trends in the area.
Despite persistently tight conditions, benchmark prices continue to trend down from the record high level reported in April of this year. Despite some adjustments, prices remained over 13 per cent higher than last year’s levels.
Detached sales slowed across every price range this month, contributing to the year-over-year decline of nearly 34 per cent and the year-to-date decline of five per cent. On a year-to-date basis, sales have eased for homes priced under $500,000 as the level of new listings in this price range has dropped by over 36 per cent limiting the options for purchasers looking for affordable product.
Meanwhile, new listings and supply selection did improve for higher-priced properties creating more balanced conditions in the upper-end of the market. This has different implications on price pressure in the market.
The benchmark price in November slowed to $619,700, down from the high in May of $648,500. While prices have eased over the past several months, they continue to remain nearly 11 per cent higher than levels reported last year.
The pullback in sales this month was enough to cause the year-to-date sales to ease by nearly one per cent compared to last year. Despite the recent declines, year-to-date sales remain 37 per cent above long-term averages for the city.
Easing sales this month were also met with a pullback in new listings, causing further declines in inventory levels and ensuring market conditions remained relatively tight with a month of supply of two months and a sales-to-new-listings ratio of 100 per cent.
Unlike the detached sector, the tight conditions prevented any further retraction in prices this month. In November, the benchmark price reached $562,800, slightly higher than last month and nearly 10 per cent higher than last year’s levels.
Further declines in new listings likely contributed to the slower sales activity this month as the sales-to-new-listings ratio remained high at 99 per cent. Inventory levels fell to 383 units, making it the lowest level of November inventory recorded since the 2013. This low level of inventory ensured that the months of supply remained below two months.
Despite the persistently tight market conditions, prices trended down this month reaching $358,700. While prices have eased from the June high, they are nearly 14 per cent higher than prices reported last November. The strongest price growth was reported in the North East, North and South East districts where prices have risen by over 18 per cent.
Despite a pullback in new listings this month, apartment condominium sales continued to rise, and inventories fell to the lowest November levels seen since 2013. This caused further tightening in market conditions as the sales-to-new-listings ratio pushed above 100 per cent and a months of supply dropped to two months.
Recent tightening in the market has put a pause on price adjustments for apartment condominiums. In November, prices remained relatively stable at $277,000 compared to last month. While prices have reported a year-over-year gain of nearly 10 per cent, prices are still below their previous highs set back in 2014.
Further declines in November sales contributed to the six per cent year-to-date decline in sales. However, with 1,091 sales so far this year, this is still 69 per cent above long-term trends for the town.
Meanwhile, new listings have remained relatively low compared to sales, preventing a more significant shift in inventory levels. In November, inventory levels did rise above the low levels seen last year, but remained 35 per cent below longer term trends for the area.
Following significant gains reported earlier in the year, benchmark prices continue to trend down in November. However, the adjustments did not erase previous gains as the benchmark price remained over 12 per cent higher than levels reported last year.
Both sales and new listings eased in November preventing any significant change to inventory levels. While inventory levels are higher than last year, they remain 54 per cent below long-term trends for the area. Overall year-to-date sales activity has improved over last year and are 41 per cent higher than long-term trends.
As conditions have remained relatively tight this month, we saw a reversal of some of the price adjustments recorded over the previous two months. The benchmark price in November reached $549,100, a two per cent gain compared to last month, and a year-over-year gain of nearly 16 per cent.
Click here to view the full City of Calgary monthly stats package.
Click here to view the full Calgary region monthly stats package.
Demand shifting to more affordable options
City of Calgary, October 3, 2022 –
Strong sales for condominium apartment and row properties were not enough to offset declines reported for other property types. This caused city sales to ease by nearly 12 per cent compared to last year.
However, with 1,901 sales in September, activity is still far stronger than levels achieved prior to the pandemic and is well above long-term trends for September. Despite recent pullbacks in sales, and thanks to strong levels earlier in the year, year-to-date sales remain 15 per cent higher than last year’s levels.
“While demand is easing, especially for higher priced detached and semi-detached product, purchasers are still active in the affordable segments of the market, cushioning much of the impact on sales,” said CREB® Chief Economist Ann-Marie Lurie. “At the same time, we are seeing new listings ease, preventing the market from becoming oversupplied and supporting more balanced conditions.”
In September, new listings declined by ten per cent. With a sales-to-new-listings ratio of 72 per cent, it was enough to prevent any gain in inventory levels, which declined over last month and were nearly 21 per cent lower than last year’s levels. The adjustments in both sales and supply levels have caused the months of supply to remain relatively low at less than three months.
The shift to more balanced conditions is causing some adjustments to home prices. While prices have slid from the highs seen in May, as of September, benchmark prices remain 11 per cent higher than last year and six per cent higher than levels reported at the beginning of the year.
Click here to view the full City of Calgary monthly stats package.
Click here to view the full Calgary region monthly stats package.
The interior design style known as Bauhaus is guided by the belief that materials should not be hidden behind upholstery but exposed to show the honesty of each piece.
This sparse, austere style can be recognised by its steel tubing designs of chairs, sofas and tables. It still looks incredible in modern houses and apartments, yet it rose out of a war-ravaged Germany from the 1920s.
Bauhaus elevated the skills of architecture, design and machinery and its design philosophy is around simplicity, economic logic and mass production
When you select Bauhaus as your interior design, you are embracing German history and culture that championed the beauty of industrialised, mass-produced furniture of light materials, geometric form and functionality.
Here are some tips for introducing a Bauhaus aesthetic to your home
The most fundamental of Bauhaus principles is that form follows function. Practically, this means that what looks good takes second place to practical use. For example, chairs with no discernible purpose are avoided even if one might look good in the corner of the room. This means no knick-knacks and ornaments.
Bauhaus deals faithfully with the materials of the furniture. Nothing should be hidden for the sake of aesthetics. Your home should expose the beams in the roof and make it integral to the furnishings, where the steel-tubing of chairs and tables is exposed as part of the ‘truth in materials’ philosophy.
Your entire approach must embrace the minimalist, industrial philosophy with the placement of furniture being linear. Avoid curves. Color, line and shape of furniture are the primary, almost the only, consideration in true Bauhaus design.
Bauhaus interior design inspired a new wave of German art in the early 1920s that can still be found today. The founder of the Bauhaus movement, Walter Gropius, warned against creating an empty carcass of a home and he encouraged the installation of select and powerful artwork. Everything you put in your house should embrace the overall concept of Bauhaus.
Calgary housing market expected to stabilize in 2023 The Calgary Real Estate Board (CREB®) has released ...
On January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (the ...
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