Calgary Market Report - April 2023
Calgary is experiencing a great revival, a rebirth, a renaissance post the 2015 recession when the oil and gas industry heavily consolidated in Alberta.
People are flooding back into the province at levels never seen before in history - record population growth and record numbers of new house formations.
Money is also pouring back into Calgary:
Saddledome to be redeveloped as part of a $1.2 modernization effort
5 Office Towers to be Converted to Residential to help revitalization the downtown core
If you are a real estate investor, now is the time to be buying in Calgary before things really take off!
Overall Calgary Real Estate Market Performance
Prices set a new record high in April with the benchmark reaching $550,800, driven by persistent seller's market conditions
Limited Supply and low Inventory levels caused more buyers to offer above the list price, contributing to stronger than expected gains in home prices.
There were 2,690 Sales compared to 3,133 New Listings, causing Inventories to drop 34% YoY and over 45% below long-term averages for April!
Sales are 21% lower than last year lower supply has caused the Months of Supply to fall to just over one month, reflecting tighter market conditions than earlier in the year and compared to conditions reported last April - existing homeowners struggling to find an acceptable housing alternative in this market.
Condos
Sales were 14% higher than March of last year but just 5% below the record set in March 2022 from a rise in new Listings.
However based on current Sales volumes, the Months of Supply dropped to 1.5 and Days on Market fell to 27 - deep Seller’s territory.
A Sales-to-new-listings ratio of 77% and Months of Supply of 1.5 reflect a seller's market but not as tight as other property types in the city.
Condo prices have risen 9% in just 2023 and the benchmark price is now $299,400 - still below the high of $306,600 set in November 2014!
North, North West and South East Calgary reported record high prices in April.
Townhome (Row)
Townhome Sales, New Listings, and Inventory levels increased compared to the beginning of the year, but all remain incredibly low.
Sales have eased compared to last year's record high, but with 416 sales, activity remains strong.
A Sales-to-New-Listings ratio of 95% and Months of Supply of under 1 Month make townhomes the tightest market segment.
The persistent demand and limited supply have driven prices to a new record high of $387,400, up over 7% from last year.
Affordability has supported demand in this sector, and the steepest price growth has occurred in the most affordable districts of the North East, East and South.
Detached & Semi-Detached (Duplex)
New listings have declined across all price ranges in the detached market, with the most significant declines occurring for homes priced below $700,000.
The Sale-to-Mew Listings ratio has risen to 88%, and Months of Supply fell to just 1.1 months, tighter than both last year and last month.
The persistently tight market conditions have contributed to further price growth, with the detached benchmark price reaching a new record high at $661,900 in April.
Every district except the City Centre reported a new record high price in April, with the most affordable East district reporting the largest year-over-year gain of 6%.
Rental Market
Record population growth continues to put pressure on the housing stock in Calgary. The median rent for an apartment in Calgary (according to Zumper) is now:
1 Bedroom: $1,737mo (40% increase YoY)
2 Bedroom: $1,938/mo (33% increase YoY)
3 Bedroom: $2,288/mo (28% increase YoY)
Even though rental rates have increased significantly, they remain very affordable when compared against other major Canadian cities.
Final Thoughts
The Calgary market is picking up steam and we are seeing the next leg up. Very tight market conditions will continue to put pressure on prices - expect further price growth through 2023 (and this is before interest rates even start coming down).
If you are interested in investing, please get in touch - I have all types of pre-construction properties from condos to townhomes to detached houses that include legal basement rental units that can fit anyone’s budget and investment objects - book a call today and let’s discuss how you can become a Condo Millionaire too!
METRIC DEFINITIONS
Sales = the number of homes recently sold (i.e. Demand). Higher sales tend to increase prices due to high demand resulting from strong economic conditions.
New Listings = the number of homes recently listed for sale (i.e. New Supply). Lower listings tend to increase prices as buyers compete for properties.
Sales to New Listings Ratio: The ratio of sales to new listings entering the market place. Used to existing homes
Inventory = the total number of homes currently available for sale (i.e. Total Supply)
Months of Supply = the number of months it would take to sell all available homes at current sales levels (balance of Supply & Demand). Months of Supply < 4 = Seller’s Market | 4 to 6 = Balanced Market | 6+ = Buyer’s Market
Days on Market (DOM) = the number of days it takes to sell a property from when it was listed. Lower DOM tend to favour Sellers and can indicate competitive marketplaces with scheduled offer dates (i.e. bidding wars).
Benchmark Price = the price of a “typical” home based that controls variables and allows for an “apples to apples” comparison over time.