Right here’s the Down Cost You’ll Must Purchase a Home in Calgary Area

Amid decrease rates of interest and exceptionally tight circumstances, document dwelling costs and gross sales have been set in Calgary area within the first half of 2022. Now that rates of interest are increased and circumstances not as tight, what can homebuyers count on this spring season?

We wished to learn the way present down fee minimums within the Calgary area evaluate to these of final 12 months when the market was particularly scorching. For this research, Zoocasa calculated the distinction within the required down fee a purchaser would wish to buy a benchmark-priced indifferent home in 8 areas throughout Calgary in March 2023 vs. the identical timeframe in 2022. 

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Benchmark dwelling costs have been sourced from the Calgary Actual Property Board. Minimal down fee quantities have been calculated primarily based on 5% of the acquisition worth for properties valued at $500,000 and below, 10% for the parts of dwelling costs between $500,001 – $999,999, and 20% for properties priced at $1 million and over. 

Take a look at the infographic beneath to see how minimal down fee quantities have modified for benchmark indifferent homes between March 2022 – 2023.

Dwelling Consumers Require Bigger Down Funds in All however One Calgary Area This 12 months

Due to interprovincial migration, demand is excessive and that is persevering with to push costs upwards in a lot of the Calgary area. Chestermere skilled the most important worth improve, with the worth of a indifferent dwelling leaping from $653,800 in March 2022 to $724,900 in March 2023. That resulted in a $12,110 improve within the minimal down fee required on a benchmark-priced dwelling, now at $52,490. The minimal down fee required in Okotoks has additionally gone up significantly, with the minimal down fee now at $37,520, a year-over-year improve of 19%.

Canmore stood out as being the one Calgary area on our checklist to have skilled a downward shift in costs; a house in March 2023 price $1,309,00, down 6.5% from final March. Although the minimal required down fee on a Canmore dwelling continues to be hefty at $261,800, it’s decreased by $18,040 from final 12 months. 

Regardless of Value Will increase, Calgary is Nonetheless One of many Extra Inexpensive Markets in Canada

In contrast with Canada’s nationwide common dwelling worth of $662,437 in February 2023, 6 out of 8 Calgary areas are far beneath that quantity. Regardless of this, Calgary was one of many solely markets in Canada to have skilled optimistic year-over-year modifications in dwelling costs in February 2023.

Strathmore is essentially the most inexpensive of the Calgary areas we analyzed, with a benchmark dwelling worth of $450,900 and a minimal down fee of $22,545, greater than 11 occasions smaller than Canmore’s minimal required down fee. Cochrane is one other inexpensive possibility as its costs have remained regular all through the final 12 months, with dwelling costs growing by simply 0.2% and the minimal required down fee up by solely $130. 

Curious about studying extra about dwelling costs within the Calgary area? Give us a name as we speak to talk to an actual property agent in your space.