Looking to buy or sell a home in Calgary? You'll need the latest information to research the local real estate market. We'll keep you updated on the average prices, current inventory, supply and demand, future prospects, and how these all relate year-over-year to help you make the best homebuying and home selling decisions. Read on for the latest quarterly update on the Calgary real estate market.
Calgary Real Estate Market Update for Q1 2022
Calgary's seen a record high in home sales, thanks to an influx of new listings. Homebuyers are seeing some choice again after the low inventory of the previous quarter when there were more sales than new listings.
However, don't breathe a sigh of relief yet. The surge in new listings still isn't enough to add significant supply to keep up with the local demand. Inventory in the last quarter of 2021 was declining and was the lowest it's been since 2014, 30% lower than long-term trends.
“Record sales combined with low inventory levels caused the months of supply to average just over one month in the first quarter,” said CREB® Chief Economist Ann-Marie Lurie. For comparison, a balanced market usually has between four and six times that much supply—that is, in a balanced market, if no new listings were added, it would take about four to six months for all homes on the market to sell. According to Lurie, this is the tightest the market's been since 2006.
With supply low and demand high, the first quarter of 2022 has seen an average residential benchmark home price of $496,767. This is a nearly 8% increase in home prices over the previous quarter, and compared to this time last year, Q1 2022 prices are over 15% higher. Sales were expected to be strong, but the market demand continues to exceed expectations, driven particularly by gains in the detached housing sector.
The rising mortgage interest rates and average home prices are also pushing many homebuyers to buy sooner rather than later, contributing to the high demand. We're unlikely to see the demand ease until there's more supply, since the demand has been building over the past several quarters of low inventory.
This white-hot seller's market won't last forever, but don't expect it to start cooling off until later this year. Economic improvements are likely to continue supporting the demand for new housing, but the pace should start slowing down to something more balanced.
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In a rapidly changing real estate market, it can be tough to stay up-to-date. Keep checking back or get in touch directly to get the latest real estate news from your local real estate experts.