Income needed to buy a Calgary home down slightly in tight seller’s market: analyst

It’s getting a little easier to buy a home in Calgary, at least in terms of money that’s needed, but actually finding a home that’s affordable continues to be a sticking point.

According to RateHub.ca, the agency calculated a drop in income needed from June to July of almost $1,700, with a total income needed close to $119,000.

This follows the Bank of Canada’s interest rate drop from 5 per cent to 4.5 per cent, with RateHub noting affordability improving throughout the country for the first time since January.

Dropping mortgage rates and real estate prices are having an impact, and RateHub analyst Penelope Graham says that’s the good news.

“We have seen mortgage rates lower over the past couple of months. It did actually become easier to afford a home,” she told 660 NewsRadio.

“Calgary specifically came in sixth, the income that a buyer requires there was actually reduced by just over $1,600.”

However, she says Calgary remains in a quite tight seller’s market, which means there’s not a lot of inventory currently available.

But Calgary mortgage broker Max Singh says — while it could be the season — he’s noticed a bit more stability with real estate in the last month or two, with a little more inventory on the market.

“We’re seeing purchase prices come … a little over asking price, but not as aggressive as it was over that short period of time when, I would say, the first half of the year,” he said.

But while finding your dream home in Calgary may still be problematic, RateHub says starting out with a mortgage should continue to become more affordable.

The study calculates the minimum annual income required to buy an average home in some of Canada’s major cities based on July 2024 and June 2024 real estate data.

Inflation in the country fell to 2.5 per cent in July.