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 selling decisions. Read on for the latest update on the Calgary real estate market.
Calgary Real Estate Market Update - September 2022
People often wonder if Calgary is catching up to other major Canadian cities in slow motion or if Calgary real estate is really in a class of its own. It's the latter.
August Real Estate Statistics
While the pace of early 2022 has slowed down from where it was, Calgary has seen the least dramatic turn. As of the end of August, home sales have remained stronger than most other Canadian markets and comparable to the solid levels on record for last year.
Here are some stats from this past month:
- The benchmark home price for detached homes was $633,000, which is a 13% year-over-year increase
- Row and townhome sales have seen a 50% increase from last year as more people pursue affordable housing options
- Apartment and condo sales are at a record high with 4,576 units sold, which is 65% higher than last year
- Benchmark prices have reduced to $531,800, and overall prices are still 11% higher than last year
While lending rates play into the slowdown in the detached home sector, we are seeing a clearer pivot to more affordable housing choices, like row houses and townhomes. Because of this, we're seeing consistent gains in these markets.
Year-to-date, row and townhome sales are 50% higher than last year, demonstrating they are an attractive option after a year-over-year ebb in detached home sales and a year-over-year flow into multi-family options. Overall, the benchmark price for row and townhomes was more than 14% higher than last year.
Looking at the whole housing sector, the gap between new listings and sales this month tightened, causing total inventory to trend downward, hindering any significant move in the months of supply. Despite this, the months of supply in August sat at just slightly over two months.
Even benchmark prices dropping to $531,800 could not spoil the fact that prices are still 11% higher than in 2021.
In one of the best stories of the month, Calgary's market for apartments and condominiums boasted more sales activity, helping generate record year-to-date sales of 4,576 units. This sector is expected to remain stable.
All in all, Alberta is a pretty great place to live right now and a pretty great place to be a home seller. If you're thinking about buying or selling a home, contact us to get in touch directly with real estate agents who are experts in the local Calgary market.
Calgary Real Estate Market Update Going Into May 2022
The number of active listings in Calgary for April 2022 was roughly 4,850, which is a full 20% lower than this time last year. Understandably, this means that the year-over-year average price for a Calgary home has skyrocketed as the demand has far outstripped supply. According to CREB®, the benchmark home price in Calgary as of April is sitting at $526,700, an almost 17% year-over-year increase and an almost 2% increase from March.
Prices in every property category have reflected this market pressure. However, some types of property have spiked more sharply than others. Overall, in Calgary:
- Detached homes show the biggest year-over-year increase, with a benchmark price of $628,900 and a 19.1% y/y increase
- Rowhomes are right on target for the average y/y increase at 16.9%, with a benchmark price of $343,000
- Semi-detached homes have a slightly smaller increase of 16.2%, with a benchmark price of $487,900
- Apartments show the smallest year-over-year increase at just 8%, and the benchmark price is around $272,600
As we've seen in the quarterly report, the inventory is tight. While 4,850 is nowhere near a record low, it's certainly far lower than it was last April. New homes are being sold almost as fast as they're coming on the market, so there's not been much of an overall shift in inventory this month—4,577 new listings were added to the inventory, and 3,401 sales were recorded (a 6.1% year-over-year increase in sales).
This is just the overall picture of the Calgary real estate market, however. Let's get into the numbers for specific districts.
City Centre homes are the most expensive in every category—except for detached homes. West Calgary's single-family home benchmark price for April surpassed $800,000, while the same in the City Centre sits at $756,200. However, compared to the previous month, City Centre's single-family home prices have risen by 2.47%, more than twice that of West Calgary and the most out of any Calgary district. There were 303 new listings and 183 sales, with a year-over-year price increase of 12.85%.
As one might expect, the City Centre has the highest inventory of apartments of all the districts, with 370 new listings and 250 sales for the month of April. The benchmark price was the most expensive as well, at $286,200, but the price variation between districts is much lower for apartments than for other property types. Year-over-year appreciation is a different story, however; City Centre apartments rose in price by just 2.29%, while other districts had prices shoot up as much as 22%.
The City Centre is where semi-detached homes are in the spotlight. The benchmark price hit $817,500 in April, over $200,000 higher than the runner-up district, West Calgary. Semi-detached prices in the City Centre rose 2.21% over last month and 11.6% over last April, with 109 new listings and 89 sales.
For rowhouses, City Centre has a benchmark price of $507,800, a year-over-year price increase of 10.2%, and a 2.46% increase since March. The market gained 122 new listings, with 78 sold.
Northeast Calgary just edged out North Calgary for the highest year-over-year appreciation for single-family homes; Northeast Calgary homes increased in price by 23.89% year-over-year, while North Calgary reported 23.69%. Month-over-month, prices in Northeast Calgary increased by 1.96%. The sales to new listings ratio for single-family homes was also the lowest in Northeast Calgary, with 401 new listings and 231 sales, possibly leading to its second-lowest benchmark price of $484,400.
Northeast Calgary came in second for highest y/y appreciation in apartments, with a 21.21% increase. Apartment prices increased 5.71% since March, and 87 new apartments came on the market, while 52 were sold. The benchmark price here was $264,600.
Northeast Calgary is in-demand all around, as it also claimed the highest y/y appreciation for semi-detached homes at 23.44%. Benchmark prices are the lowest in the city, however, at $371,300. This could be a good time to invest in Northeast Calgary property. With a month-over-month increase of 3.51%, it's better to get in sooner rather than later. The sales to new listings ratio was exactly 50%, with 62 new listings and 31 sales.
While Northeast Calgary doesn't have the highest rowhouse inventory in the city, it does have the most active rowhouse market of any district, with 130 new listings and 105 sales. Rowhouses here are also on the more affordable side, with a benchmark price of just $225,100. Year-over-year price increases are about average for the city, with its 15.67% increase being comparable to West and South Calgary. Since March, prices have increased 1.58%.
North Calgary homes are experiencing the tightest squeeze in semi-detached homes, as the North Calgary semi-detached home market is the only area of Calgary real estate where there were more homes sold than new listings coming on the market (38 sales and 32 new listings, respectively). "Months of inventory" is better measured as "weeks of inventory" when the months of inventory is a mere 0.47. If houses stopped appearing on the market, North Calgary would run out of semi-detached homes to sell within about two weeks.
Several other markets are cutting it close, however; West Calgary had a 100% sales to new listings ratio (38 to 38) in semi-detached housing, and apartments in North, Northwest, and East Calgary and semi-detached homes in South and Southeast Calgary all have sales to listings ratios that are just barely keeping up with demand, only adding a few more listings than were sold. If you're looking for a home in any of these markets, you'll be looking at some steep competition.
Northeast Calgary might soon be seeing some more breathing room, however; despite having a month-over-month benchmark price increase of 3.51%, the highest of any semi-detached market, it also has the lowest sales to new listings ratio, adding twice as many listings as it sold. This slowing down has led to it having the highest months of inventory of any of Calgary's districts in this field at 2.65 months.
When it comes to Northwest Calgary homes for sale, you'll be looking at some fairly steep month-over-month benchmark price changes. Compared to the previous month, Northwest Calgary real estate is appreciating the fastest in the apartment, semi-detached, and rowhome markets, scoring at least in the top 3 for each sector and coming in second only to West Calgary when it comes to rowhouses. However, year over year, Northwest Calgary homes are appreciating faster than West Calgary homes in all categories.
West Calgary has strengths of its own, though; while West Calgary homes may be appreciating at a slower pace than other markets, as mentioned before, West Calgary has the highest benchmark prices for detached homes at $826,800 and comes in second only to the City Centre when it comes to semi-detached ($583,700 vs. $817,500) and rowhomes ($399,400 vs. $507,800). If you're looking for a spacious home, it's clear that West Calgary has some of the most valuable real estate around.
Homes in South Calgary appear to be fairly average across the board for Calgary. Across all property types, South Calgary ranks neither the highest nor the lowest in any measured metric. However, South Calgary does have the most active detached home market, selling a total of 361 detached homes and adding 474 new listings, the most of any district in both categories. This is despite it only coming in third in terms of the resulting total inventory for detached housing.
Southeast Calgary's standout characteristics are in rowhomes, where it has the highest year-over-year appreciation of any Calgary district at 24.06%, and in its fairly steady month-over-month benchmark price changes in detached homes and semi-detached homes, both being less than a 1% increase and the lowest month-over-month percentages on the list. However, in both detached and semi-detached homes, Southeast Calgary homes for sale are more than 20% more expensive than they were at this time last year. Southeast Calgary semi-detached homes are also one of the highly competitive markets mentioned above, with 33 sales and 36 new listings.
East Calgary is the smallest of Calgary's real estate markets, having the lowest number of sales and new listings in the city. However, this smaller market does come with its own advantages; East Calgary real estate tends to have more months of inventory than most of its fellow districts, typically only beat out by the City Centre and Northeast Calgary. However, East Calgary can lay claim to what might be Calgary's only balanced market right now—it has a bit over four months of rowhouse inventory, which meets the lower end of the typical 4–6 month standard.
In other categories, much like South Calgary, East Calgary doesn't stand out too much—except in apartments, where its year-over-year price increase is a whopping 22.40% and the highest in the category. Of note is that East Calgary has some of the most affordable benchmark prices in the city. If you're looking to get involved in real estate investment, this means that, when put together, East Calgary apartments might be a wise investment to look into.
We hope you found this analysis of Calgary's real estate market helpful. Keep checking back or contact us directly to get the latest real estate news from your local real estate experts.
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.
Interest Rates and Home Prices
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.