Inflation typically means that the overall cost of goods and services in an economy is increasing. In the real estate market, this can lead to higher home prices as the cost of building materials, labor, and other expenses associated with buying and selling homes increases.

Additionally, if inflation is coupled with a strong economy, demand for housing may also increase, further driving up prices. However, it's important to note that inflation alone does not determine real estate prices, it is a complex market that is influenced by various factors.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Watch Video
Source: What Does Inflation Mean For A Real Estate Market? | Greater Calgary Real Estate | Jan 27th, 2023

The real estate market has changed so much over the past 2 years and continues to do so! This month I am sharing details on some of the interesting trends we are seeing for 2023.

If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠ 

The level of new listings in January fell to the lowest levels seen since the late 90s. Sales activity slowed compared to the high levels reported last year but remained consistent with long-term trends. Detached homes only comprised 47% of all sales.

With 2,451 units available in inventory, levels remain 43% lower than long-term trends for the month. Homes priced under $500,000 reported year over-year inventory declines of nearly 30% while inventory levels improved for homes prices above that level.

The benchmark price reached $520,900, 5% higher than last January, but still well below the May 2022 high of $546,000.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Watch Video
Read Full CREB Market Report⁠
Home Evaluation Form
Start Home Search

Effective January 1, 2023

Anti Flipping Tax  - Profits from properties held for less than 12 months are fully taxed with certain exceptions for unexpected life events like death or divorce. This ensures investors pay their share and are an active role in lowering home prices. 

Speculation Tax – Effective May 7^th, 2022, The Goods and Services Tax/ Harmonized Sales Tax (GST/HST) will be applied to all assignment sales of new construction or substantially renovated residential housing. Note, an assignment sale is when a property is resold before it’s been built or lived in.

Vacant Home Tax – Foreign-owned underused housing will have a 1% annual vacant homes tax to help make more homes available, the market more affordable and to ensure non-resident owners of Canadian housing pay their share. 

Foreign Buyers Ban – Foreign purchasing will be halted for 2 years effective January 1^st, 2023 ensuring housing is used as Canadian homes and not as financial assets for foreign investors.

Benefits for Buyers in 2023 - The First-Time Home Buyer’s Tax Credit doubled to $1,500 in direct support to home buyers to offset the increasing costing costs involved in the home buying process. January 1^st, 2023 saw the introduction of a refundable Multigeneration Home Renovation Tax Credit which provides $7,500 to support the construction of secondary suites for senior family members or other adults with needs like disability.  

Tax-Free First Home Savings Account (FHSA) If you contribute $8,000 per year to buy a home, it’s the equivalent of the government offering you a non-taxable gift. Unlike the HBP, you don’t need to pay back the amount, even if the withdrawals are not used on a down payment for a home. However, those withdrawals will be taxable.

Reach out with any questions! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Watch Video
Source: Housing Taxes and Benefits for 2023 | Greater Calgary Real Estate | November 26th, 2022

“Elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record-high in 2022 but with forecasted sales of 25,921, levels are still expected to be higher than the activity reported before the pandemic. Recent growth in migration and employment is expected to help offset the impact of higher lending rates, keeping annual sales activity higher than levels achieved throughout the 2015 to 2019 period. The growth in new listings in 2022 was not enough to offset the gains in sales and supply levels have remained low, especially for lower-priced product. The higher lending rates are also expected to weigh on listings growth in 2023 as it has become more challenging for a move up buyer. While improved starts are expected to help support supply growth, thanks to the strong migration levels, supply levels are not expected to report significant gains.

The low starting point and limited upward pressure on supply in 2023 is expected to prevent any significant downward pressure on prices as demand normalizes. However, conditions are expected to vary depending on price range and property type. Higher-priced homes are expected to see some downward price pressure as that segment of the market is not experiencing the same supply constraints.Meanwhile, supply declines relative to sales for lower priced properties are expected to continue to support modest price growth. Declines in the upper end of the market are expected to offset gains in the lower end of the market as total residential prices in Calgary are expected to stabilize in 2023.”

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | CREB Forecast Calgary & Region Yearly Outlook Report

The real estate market can be significantly impacted by interest rates. When they’re low, it’s more affordable to borrow money to purchase a home which increases the demand and raises prices. When interest rates are high, it’s more difficult and less affordable to purchase a home which decreases demand and lowers prices.

Any change in interest rates can impact existing mortgage and the value of homes. They are crucial in understanding the overall health of the real estate market. If you have any questions about buying or selling, connect anytime! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Watch Video
Source: How Do Interest Rates Affect Our Real Estate Market | Greater Calgary Real Estate | Jan 27^th, 2023

"Across Canada, monthly average housing prices have tumbled almost 20% from their peak levels last year as several negative forces have touched down, including a series of interest rate hikes and a slowing economy. During the same period, housing prices in the Prairies dipped by an average of 6%. In Alberta, prices will decline 5.6% - averaging about $418,000."

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | Outperforming The Market-Home Prices Faring Better in Prairies | Calgary Herald

The target for the overnight rate increased to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. Quantitative tightening will continue. Inflation remains high and broadly based globally, but is trending down in several countries, reflecting lower energy prices and improvements to supply chains.

In the US and Europe, slowing economies are proving to be more resilient than at the time of the Bank’s October Monetary Policy Report (MPR). China’s lifting of COVID-19 restrictions revised the growth forecast and poses an upside risk to commodity prices. Russia’s war on Ukraine is still a source of uncertainty and financial conditions remain restrictive. The Canadian dollar has been relatively stable against the US dollar.

It’s estimated that the global economy grew about 3.5% in 2022, but will slow to about 2% in 2023 and then grow to 2.5% in 2024. Economic growth in Canada is stronger and the economy remains in excess demand. The labour market is tight as the unemployment rate is near historic lows. Businesses, however, are reporting ongoing difficulty finding workers.

There’s evidence that the restrictive monetary policy is slowing activity, especially household spending. Services and business investments are expected too slow in addition to weaker foreign demand helping to allow supply to catch up with demand.

It’s estimated that Canada’s economy grew by 3.6% in 2022 but is expected to stall through to the middle of 2023, and then picking up again later in the year. GDP is expected to grow 1% in 2023 and 2% in 2024. Inflation has declined from 8.1% in June to 6.3% in December, reflecting lower gasoline prices and durable goods.

Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation is expected to remain elevated but inflation is projected to come down significantly this year.

Governing Council decided to increase the policy interest rate by a further 25 basis points. Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target, and remains resolute in its commitment to restoring price stability for Canadians.

Reach out with your questions in regards to how this impacts your home buying or selling decision.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Watch Video
Read Full Report

“The bulk of the downward adjustment to sales reacting to the sharp rise in borrowing costs may be in the rearview mirror,” says Shaun Cathcart, CREA’s Senior Economist, as home sales were up 1.3% on a month-over-month basis in December 2022.

Wondering how this impacts your home buying or selling decision? Are you interested in moving out of the province? Connect with me to discuss your options and for a trusted referral.⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca 

This month I am sharing a list of some of the more common terms you may hear regarding real estate transactions. If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

WATCH VIDEO

December sales eased, but slowing sales over the 2nd half of 2022 were not enough to offset earlier gains as sales reached a record high of 29,672 units in 2022.The pullback in sales was also met with pullback in new listings, causing further declines in inventory levels. As of December, there were 2,214 units available, making it the lowest level of inventory reported for December in over a decade.

Benchmark prices eased to $518,800, down nearly 5% from the peak price in May but almost 8% higher than last December. While prices have trended down annually, they remain over 12% higher than last year’s levels. Overall, the housing market in 2022 generally outperformed expectations both in terms of sales and price growth.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Read Full CREB Market Report
Home Evaluation Form
Search for your home today

WATCH VIDEO

The Bank of Canada today increased its target for the overnight rate to 4.25%, with the Bank Rate at 4.5% and the deposit rate at 4.25%. The Bank is also continuing its policy of quantitative tightening.⁠
⁠
Inflation around the world remains high and broadly based. Global economic growth is slowing, although it is proving more resilient than was expected at the time of the October Monetary Policy Report (MPR). ⁠
⁠
In Canada, GDP growth in the 3rd quarter was stronger than expected, and the economy continued to operate in excess demand. Canada’s labor market remains tight, with unemployment near historic lows. ⁠
⁠
While commodity exports have been strong, there is growing evidence that tighter monetary policy is restraining domestic demand: consumption moderated in the third quarter, and housing market activity continues to decline. ⁠
⁠
Overall, the data since the October MPR support the Bank’s outlook that growth will essentially stall through the end of this year and the first half of next year.⁠
⁠
CPI inflation remained at 6.9% in October, with many of the goods and services Canadians regularly buy showing large price increases. Measures of core inflation remain around 5%. ⁠
⁠
Looking ahead, Governing Council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target. ⁠
⁠
Quantitative tightening is complementing increases in the policy rate. We are resolute in our commitment to achieving the 2% inflation target and restoring price stability for Canadians.⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Read Full Report 
Home Evaluation Form
Search for your home today

Canmore vacation home values rise 23 per cent to $1.59 million. Meanwhile, the median price of condos in the community rose by just 5.9 per cent to $663,400. It’s a good place to hang your hat with less tourists than Banff.

Read More by Josh Aldrich | Calgary Herald

Your tone of voice and the words that you use can sometimes be the difference in whether a conversation is positive or not. Here are some great books to check out that offer tips on ways you can ensure that your conversations have the best outcomes. What will you start with first?⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

During this time of year, our thoughts are filled with gratitude for those who have supported us in our personal lives and careers. Here are some ideas on how to host an event that extends that gratitude to helping others in need.⁠
⁠
Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Online shopping can be easy and fun. But unfortunately, there are many scammers who want to steal your identity and your money. The information here provides tips on ways you can protect your personal information and your finances when shopping online.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Calgary housing sales totalled 18,694 units in the first half of 2022, with sales in the second quarter nearly matching the record high pace set in the first quarter of the year. 

This is NO surprise with eager consumers wanting to get into the market with low pre-approval rates. New listings struggled to keep pace leaving inventories relatively low and the months of supply relatively tight. This caused prices to trend up in the second quarter relative to both the previous quarter and year.

July saw a 1% increase from the Bank Of Canada. After 4 consecutive rate increases, the overnight lending rate has jumped to 2.5% and pushed mortgage rates up to their highest levels in over a decade. The lending rate increases have impacted home sales and are expected to weigh on sales over the second half of the year, offsetting some of the strong gains reported over the first half of the year. 

Supply adjustments in the market have been slow however, the pullback in demand is expected to help support more balanced conditions. With market conditions easing and a higher cost of borrowing, prices are expected to trend down in the second half of the year, offsetting some of the stronger than expected gains in the first half of the year. 

Despite the pullbacks, we anticipate that the annual benchmark price will remain higher than levels reported last year.


Click here to read more! Contact me with your questions!

Jason Streich⁠ 
Greater Calgary Real Estate⁠ 
403 807 2204⁠ 
jstriech@shaw.ca⁠