If you have been keeping up with our monthly e-newsletter, you already know we experienced an extremely hot real estate market throughout the first 6 months of 2024. Tight market conditions led to plenty of multiple offers and significant price appreciation right through the end of June. Since then, things have cooled off slightly, although the market remains relatively strong overall, especially compared to 4-5 years ago when Calgary was still recovering from the oil bust in 2015.
Another hot topic in 2024 has been Calgary’s City-wide rezoning, which passed (with amendments) at the City Council after a record-breaking debate and 3 days of public input back in May. This rezoning was enacted in early August and is expected to impact inner-city development moving forward.
Below is an electronic copy of our semi-annual report. We hope that you enjoy it!
- Frances, Thomas, & Team
NEW INFILL TOWNHOMES
MAKING HEADLINES
A NEW SECONDARY SUITE INCENTIVE PROGRAM FROM THE CITY OFFERS UP TO $10,000 TO QUALIFYING HOMEOWNERS!
CREB 2024 Q2 ECONOMIC UPDATE
Courtesy of the Calgary Real Estate Board (CREB)
New listings have increased for the fourth consecutive quarter compared to last year, mainly in the upper price ranges. Rising prices and high lending rates encourage more sellers. The sales-to-new listings ratio fell below 80% for the first time since early 2023, boosting inventory but still favouring sellers with a ratio of 75% and one month of supply. Sales slowed by 3% compared to last year, driven by low supply in lower-priced properties, but remain 29% above long-term trends. First-half sales were nearly 6% higher than last year, driven by migration due to affordability and job growth.
Migration has slowed but still benefits from inflows, mainly from BC and Ontario. Reduced migration and employment shifts should ease housing demand, balancing the market. Home prices have risen by 10% this year, with row properties up 19% and detached and semi-detached homes up 13%. More new homes will help balance the market and slow price growth in the second half, especially for higher-priced properties. However, affordable properties will continue to increase prices due to tight supply.
Data Source: CREB Q2 2024 Quarterly Update Report
KEY ECONOMIC FACTORS
POPULATION
Alberta continues to see impressive in-migration both internationally and interprovincially. We don’t have exact statistics for Calgary, but estimates are that nearly half of new migrants to Alberta are settling in Calgary.
CALGARY'S EMPLOYMENT Q1 2024
Q1-Q2 HOUSING STARTS
Calgary Census Metropolitan Area
CALGARY'S RENTAL MARKET
Data Sources: Stats Canada, Bank of Canada. Rental and Vacancy rate: CMHC, rentals.ca
2024 YTD MARKET UPDATE
AUG 2024 - What a year 2024 has been so far, with extreme seller’s market conditions through the first half of the year leading to substantial price appreciation across all market sectors. Although the market has been robust for nearly every type of home and across all price ranges, the craziest market conditions this year were experienced in the entry-level price categories. In fact, throughout the busiest Spring months, multiple offers were the norm for nearly every single-family home priced under $750,000, with some properties seeing upwards of 10 or 15 offers!
Since June, the market has started to cool off, with slowing sales and more new listings leading to rising inventory levels compared to the tight Spring market. This trend is expected to continue through Summer and into the Fall, leading to more balanced market conditions through the remainder of 2024. Although this market shift may feel significant, it is important to note that inventories are still well below long-term trends and sales well above—in short, the market is still very strong!
DETACHED SECTOR
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SEMI-DETACHED SECTOR
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TOWNHOME SECTOR
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APARTMENT SECTOR
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2024 YTD NEWINFILLS MARKET UPDATE
AUG 2024 - Year-to-date sales for single-family new infills have been incredibly strong in 2024 despite rising land costs and significantly higher construction costs than in years past. Along with the overall real estate market in Calgary, new infills have also seen sales prices rise through 2024, which has relieved builders and developers feeling the pinch of thin margins but a disappointment to new home buyers hoping to acquire a new home at an attractive price.
Increased demand for homes with secondary suites led many builders and developers to design their projects in 2024 accordingly. As inter-provincial migration has started to slow, so has demand for secondary suites—only time will tell if this trend continues through the rest of 2024 and into 2025.
Another hot topic in the development community is which communities are now ripe for development. With city-wide rezoning now complete, nearly every community can accommodate infills, opening the door to new options for builders and buyers alike.
A completely different beast from the single-family sector, the new infill townhome market remains extremely low on inventory due to the incredible popularity of purpose-built rental development over the last few years.
Although a handful of new infill townhome projects were developed for sale this year, most were constructed for purpose-built rental purposes. Accordingly, new townhome inventories and resulting sales remain incredibly low compared to 2021 and prior. Buyers who would have normally sought out a new townhome for purchase have been forced to look at the resale sector, move up to a single-family infill, or enter the apartment sector for availability.
One indication that we may start to see some changes in the next few years is that many developers are beginning to have second thoughts about developing their rental projects and have instead posted their land with approved plans for sale - at a huge markup. As such, we may see more units come to market in 2025 if some projects are converted for sale rather than rental purposes.
SINGLE-FAMILY NEW INFILLS
NEW INFILL TOWNHOMES
MAKING HEADLINES
CALGARY BLANKET REZONING IS NOW IN EFFECT!
Blanket rezoning was passed (with amendments) on a 9-6 vote earlier this year, and it is now officially in effect as of August 6th.
Rezoning has been a hot topic since it was first proposed in 2023, and it remained highly debated until the end. Community feedback played a vital role in the debate, and many of the amendments directly resulted from over 700 Calgarians letting their voices be heard at public meetings.
AMENDMENTS:
As a result of community feedback, more than 20 amendments were made to the bylaw, including:
- Measures to increase residents' ability to implement privacy measures on their properties.
- Giving communities further say in what types of developments are built in their neighbourhoods.
- Clarity and changes to parking minimums.
- Attempts to standardize townhouse and rowhouse development permits.
However, the KEY amendments to R-CG are:
- Rowhouses and Townhouses are now listed as “discretionary” uses under R-CG.
- Single-family semi-detached and detached homes are listed as “permitted” uses under R-CG.
WHAT IS THE DIFFERENCE?
- Permitted means that, if a development meets all the rules of the land use bylaw, it must be approved.
- Discretionary means that the development must be reviewed and weighed against several factors. Each application must be reviewed on its own merit, and there is no guarantee of approval.
This is a significant change from the original R-CG zoning where rowhouses were a permitted use.
SO WHAT DOES THIS MEAN?
Truthfully, it is still early days, and only time will tell how this all shakes out. However, expectations include:
NUMEROUS COORDINATED COMMUNITY EFFORTS TO PUT IN PLACE “RESTRICTIVE COVENANTS” TO HALT HIGH-DENSITY DEVELOPMENT
Restrictive covenants are agreements registered on title to a property that set out certain rules that must be abided by, regardless of zoning. They can be used to enact a minimum lot size or frontage or limit a homeowner's ability to develop attached homes, multi-family properties, or even secondary suites. Many estate communities attempt to gain full community acceptance by adding these to prevent higher-density development.
H-GO ZONING WILL NOW BE THE PREFERRED ZONING FOR TOWNHOUSE/ROWHOUSE DEVELOPMENT
Under the new R-CG zoning, builders and developers must submit for a full development permit on any townhouse project without certainty of success. This makes the development of townhomes on R-CG lots more complicated and drawn-out, with the likelihood of negative community engagement much higher. Developers are more likely to be attracted to H-GO lots or to try for a re-zone to H-GO prior to moving ahead with a development permit for townhomes under R-CG.
Single-family attached and detached homes are permitted use under R-CG. As a result, we are likely to see older homes on larger lots give way to narrower single-family infill-style homes in areas now zoned R-CG, many with secondary suites.
You can learn more about the saga of City-Wide Rezoning in the following BLOG articles:
KEY CHANGES TO THE R-CG LAND USE BYLAW (SEPT 2024)
CALGARY'S PLAN FOR THE HOUSING CRISIS (SEPT 2023)
IN THE NEWS
A NEW SECONDARY SUITE INCENTIVE PROGRAM FROM THE CITY OFFERS UP TO $10,000 TO QUALIFYING HOMEOWNERS!
The City of Calgary announced earlier this year an incentive program aimed at encouraging homeowners to build legal secondary suites as a way to help combat the housing crisis and provide more affordable housing for Calgarians.
The Secondary Suite Incentive Program will provide qualifying homeowners up to $10,000 to build and register a secondary suite, however there are some limitations and qualifiers. Let's review:
- The incentive only applies to suites built within the main dwelling, which means it does not apply to backyard or detached suites.
- Applications are limited to one per person, and you must own the property through the entire process.
- The program will not fully fund the construction of a secondary suite. Rather, it is meant to reimburse the costs of installing certain safety elements that did not previously exist.
More information can be found online at calgary.ca. However, basic qualifying safety features and their costs can be found below:
- EGRESS WINDOWS - $1,500
- HARDWIRED AND INTERCONNECTED SMOKE AND CARBON MONOXIDE ALARMS - $1,000
- PROTECTED EXITING - $1,000
- SMOKE TIGHT BARRIER - $4,000
- SPLIT HEAT/SEPARATE AIR (if required) - $6,000
Additional funding is also available for accessibility and energy efficiency. Up to an additional $1,250 can be obtained for ENERGY STAR-certified egress windows and split heat/separate air equipment, and an additional $5,000 can be obtained for accessible spaces for those with common mobility issues.
If you would like to learn more about building out a secondary suite, check out these blogs on our website:
THE SCOOP ON ADDING A NEW LEGAL SUITE
THE SCOOP ON ADDING A NEW LEGAL SUITE
TOP REASONS TO INVEST IN A LEGAL SUITE
STRONG RENTAL INCOME
Demand for rental housing in Calgary is sky-high. Legal suites, especially newly constructed or renovated ones, are renting these days for anywhere from $1,000 to $2,500/month, depending on location and features.
OFFSET RISING MORTGAGE COSTS
An extra $1,500 - $2,500 a month in income can make a huge difference to a homeowner facing higher-than-expected monthly payments, especially on mortgage renewal.
BETTER RESALE VALUE
Generally speaking, homes with legal suites sell at a higher price than those with illegal or no suites.
AGENT SPOTLIGHT
We sat down with one of the most long-standing members of our team to ask a few questions...
Why did you get into real estate?
I've always loved looking at homes and working with people. Working in real estate combines these two worlds into something fun and rewarding!- What did you do before becoming an agent?
Before becoming an agent, I went to university to study business with a focus on marketing. After school, I became the marketing manager for Urban Upgrade! That role was a great learning experience and the perfect transition into sales. - What is your focus when working with clients?
Don't just provide advice; Listen and understand the problem. "How can I help?" is always at the forefront. Advising on real estate is not a one-size-fits-all situation. Everyone has different goals, and we need to understand that as professionals. - What do you love most about working in real estate?
There is nothing more rewarding than a smile and a happy customer! Realizing our clients' goals and doing so as a team is the best feeling in the world. - What’s your #1 tip for a successful sale?
Communication is the key to a successful sale. Whether things are going well or there are bumps along the way, it is important to keep everyone on the same page. - What’s it like being on the Urban Upgrade & NewInfills team?
We have a lot of fun and a very positive culture where we support one another. We don't just work together; we share and grow as a group. There's a level of accountability to each other, which is vital for any successful team. - What’s your #1 tip for finding the perfect home?
Be patient and ask yourself questions! Analyze what you liked and didn't like after each viewing. This way, you can steer in the optimal direction and avoid the things that won't work for you. Knowing what you don't want is a step in the right direction. Eventually, you'll have enough perspective to make an informed decision.
Want to learn more about our agents?
Read everyone's full bios on Our Team page!
