Strategy: Save Money by Buying a New Home in Calgary

The real estate market in Calgary is on the brink of significant changes, with experts predicting a notable increase in home prices. Understanding the reasons behind these trends and strategizing for future purchases, especially in new build homes, is crucial for potential homebuyers and investors.

Why are Calgary Home Prices Increasing?

A primary factor driving the rise in Calgary’s home prices is the substantial population growth, particularly in Alberta. This influx, mainly from other Canadian provinces rather than international immigration, is unprecedented. Over 17,000 people moved to Alberta in just one quarter, with a consistent trend over the past five quarters. This surge is placing significant pressure on both the rental and home-buying markets, resulting in a shortage of available properties.

Strategies for New Build Homes

Each spring, there’s an influx of buyers, but the current scenario is unique due to the increased demand from new arrivals to Alberta and consequent supply challenges. This scenario is leading to a rise in prices driven by the classic supply-demand dynamics.

For homebuyers considering new builds, a critical strategy emerges: locking in today’s prices while starting the mortgage at completion. This approach benefits from the current property prices, which are expected to rise, and potentially lower mortgage rates in the future.

The Mortgage Aspect

In a rising rate environment, locking in a mortgage for a new build that won’t be ready for several months can be difficult as most lenders don’t want to guarantee a rate beyond four months. However, the current market dynamics, where a reduction in mortgage rates is anticipated, turn this into an advantageous move. By locking in the price now and starting the mortgage payments later, buyers can potentially save significantly on interest, despite the initial fears of a rising rate environment.


The real estate market in Calgary is poised for change, with increased population growth driving up home prices. For those looking into new build homes, the strategy of locking in today’s prices and capitalizing on potential future drops in mortgage rates presents a promising opportunity. As always, it’s crucial to stay informed and consult with experts to make the most of the current market trends.

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