Average Daily Sales of Homes in Calgary for April 2022 are slightly higher than April 2021. Does this mean the Calgary Housing Market is starting to slow down? The numbers would suggest that is the case. We have had a rise in the Bank of Canada Prime lending rate in the past month, and the increase in the prime rate means mortgage rates also get bumped up. We also saw a significant rise in unsold active listings at the end of the month. Before you read too much into these numbers, remember the best properties are always in demand. Location, Location, Location is not just a cliche; it's a fact. Compromise on everything else but be location picky!
We have 2,460 Detached Homes for sale at the end of April. Average daily sales in the Detached category dropped to the lows of May and June 2021. As I've said before, Detached Homes are Gold. Money in the bank. In demand no matter what's going on in Calgary or the rest of the world. Detached Homes have no condo fees, no condo boards, no flooding of the market by home builders, and better opportunities to increase values with regular upgrades. Be picky with the location. Buying the ugliest house in the best neighbourhood is another cliche you hear. You hear it because it's true. Be picky, my friends!
Healthy is not a word we've heard in reference to the Attached Homes Sales Market of Calgary. But from the looks of sales for April 2022, you can say it looks like a very healthy market. With rising prices and multiple offers hammering the detached segment, attached homes have become very attractive for many buyers. I'm guessing a lot of renters were forced to move because the landlords sold the detached rental house they were living in is also helping sales. There are some beautiful well maintained attached home options for savvy buyers. Working with a knowledgeable Realtor also helps avoid buying falling rocks. Be picky; let the market come to you.
Even though it appears Condo Sales are dropping like a slow-moving train, this part of the Calgary Housing Market is doing well. The activity level is giving a lot of Realtors an education on condo management companies and condo boards. When you buy or sell a condo in Calgary, they come with more than the eye can see. Subject To Review and Approval of Condo Documents is a typical buyer due diligence clause in an offer to purchase. Reviewing the condo documents answers many questions and provides many clues about potential special assessments and what direction condo fees are headed. Special Assessments are Cash Calls made on the owners to pay for significant repairs not accounted for in the reserve fund. The Reserve Fund Study and Budget is an essential document package you need to examine closely as well. Buyer Remorse is a real thing and not just another cliche. Working with an experienced Realtor will help you keep it a cliche as far as you are concerned.
The war in Ukraine is top of mind for lots of people, and rightfully so. What's happening in that country by another country in 2022 is criminal. We like to think we've come a long way since the barbaric days of our collective history. Russia today is making it painfully clear to the world that humanity is just as ruthless as ever. It reminds me of the Scorpion and the Frog crossing the river tale. The scorpion stings the frog, and they both drown; when the frog asks why the scorpion says it's in his nature. What we see from Russia is in their nature.
Rising Interest Rates to knock down inflation is a big topic. It makes one wonder who is it that gets the Extra Interest being charged. The banks obviously benefit when they get to raise the rent on the money they are already renting out. Rising interest rates are a transfer of wealth from Money Renters to those with money to rent. Inflation, to me, means Wages and Earnings are not moving to keep pace with the devaluation of our currency. Prices don't go up, the value of our money goes down. Inflation is business owners failing to pay employees more. Google is buying back 70 Billion dollars of their own shares. Apple is doing something similar. If they and others simply paid employees more instead of buying back and burning paper, inflation wouldn't be used as a tool to make the rich richer.
The Hot Calgary Real Estate Market will end. I know this for 100% certainty because it always does. If you've ever seen an ants nest explode because there are just way too many ants in the nest, that is what this market feels like. Everybody decided at once it is time to move. Once they get settled into their new ant hills, things get back to normal. The Fear of Missing Out is the final cliche for today. Don't fall for it. It's not real. We live in a world of abundance. FOMO is an illusion. Be picky and patient, my friends!