As we prepare to usher in 2024, the economic landscape appears both promising and uncertain. Calgary, it must be remembered, is a city deeply tied to the fluctuating fortunes of the energy sector. With that in mind, let’s delve into the 2024 economic outlook and what it may mean for the real estate market in Calgary.

Economic overview

The global economic recovery from the challenges posed by the COVID-19 pandemic has been a driving force behind many regional financial shifts. With the energy sector as a cornerstone of Calgary's economy, the city has historically witnessed highs and lows in tandem with oil and gas prices.

As we anticipate 2024, signs of stabilization in the global economy are encouraging, but the pace and sustainability of this recovery remain uncertain.

Energy sector resilience

Real estate in Calgary has long been influenced by the energy sector. The city's skyline has been a testament to the booms and busts of oil prices. Looking ahead to 2024, the energy market is showing signs of resilience, with a gradual rebound in oil prices. This adaptability could potentially inject even greater confidence into the Calgary real estate market.

Employment and migration

The health of the job market is a key determinant of the real estate environment. In Calgary, where the energy industry employs a significant portion of the workforce, job stability is intricately linked to the sector's performance.

Due to the current health of energy, we can anticipate a positive impact on employment rates, potentially drawing in more skilled workers and boosting further migration to the city.

Government policies and investments

Understandably, targeted government initiatives to diversify the local economy and invest in the energy sector are important. Infrastructure projects, renewable energy expenditures and endeavors to attract tech and innovation companies all play a role in economic development. 

In turn, each of these can contribute to a more robust financial environment, positively influencing real estate.

Housing market trends

In the wake of economic uncertainties, housing market trends have become a focal point for both buyers and sellers. In Calgary, the real estate business is likely to witness a mix of opportunities and challenges. With increased job stability and positive economic indicators, demand for housing may experience an uptick. However, developers and sellers should remain somewhat cautious, as economic uncertainties can create hesitancy among potential buyers.

Interest rates and mortgages

Changes in interest and mortgage rates have a critical effect on the real estate business. Presently, central banks are navigating a delicate balance between supporting economic growth and controlling inflation.

Any shifts in interest rates in 2024 could have a direct bearing on mortgage rates and, consequently, on the affordability of homes in Calgary. Potential buyers should stay informed about these trends to make thoughtful decisions.

In closing

The strength of the energy industry coupled with government initiatives and a potential rebound in global economic conditions, paints a cautiously optimistic picture for home buyers and sellers in Calgary. That said, the real estate landscape remains susceptible to external factors such as interest rates, employment fluctuations and unforeseen global events.

If you’re considering entering the real estate market, it’s valuable to have a thorough understanding of the various influences. That’s where I come in. Please reach out to me without hesitation if I can be of assistance.