One must assume the purchasing power of the typical calgary home buyer is measurably damaged now by rising rates. Qualification and the stress test at elevated rates makes for arduous financing. This has to hurt the higher end market much more than the starter home market. But how much and how harmed will the infill market be is hard to say. There is a still a lot of strength in older detached infills coming to market at high prices. Purchase cost of carrying of these tends to be way delinked from cost to rent the same type of house, if a wholistic model is used to compare rents to property tax, upkeep, and interest. The latest cost to consider is the risk free rate of return on down payment money. At the beginning of the year, a 200k nest egg waiting to be dumped into a house purchase would earn 0.25% at the local branch. Now they can get you 5%. Just the risk free opportunity cost on a down payment is $10k per year. That pays for a lot of rent while waiting for a correction. So does $5k in property tax.
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