Calgary Market Report - March 2023
Condo prices are up 6.8% since January. Let me repeat that again - condo prices are up 6.8% since the beginning in 2023! The Calgary market is BOOMING!
I believe this increase is being primarily caused because of the record population growth Alberta - Q4 2022 set a records for the most number of people EVER with 58,203 people entering the province. About 2/3 of these people are international immigrations and the rest are interprovincial migrants, mainly from Ontario and BC.
By 2046, the government expects that 4/5 of the entire population of Alberta will live in the Calgary - Edmonton corridor.
Overall Calgary Real Estate Market Performance
Prices are rising as tight market conditions favour the seller
Detached houses just set record highs
Condo prices are up 6.8% in 2023, 11% YoY
Townhomes have just 1 month of supply and are up 8% YoY
Sales have eased from record levels but remain stronger than before the pandemic, thanks to recent gains in migration supporting demand
March recorded 3,318 new listings compared to 2,432 sales, leaving the sales-to-new listings ratio high at 73%
Low inventory levels have resulted in limited choices for buyers with just 1.3 Months of Supply available resulting in rising home prices.
Overall Benchmark prices are up 2% in just one month and continuing to trend higher
“As expected, sales have eased from record levels while remaining stronger than they were before the pandemic thanks to recent gains in migration supporting demand. The challenge has been centered around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
– Ann-Marie Lurie, CREB® Chief Economist
Condos
Condo Sales declined by 11% compared to last year's record high and New listings also decreased by 8% compared to last year, resulting in low inventory levels at only 1,000 units.
There is only 1.5 Months of supply so Sellers continue to drive the market.
The average property is now on the market for only1 month.
The Benchmark price rose to $293,500, 6.8% since the beginning of 2023 and a year-over-year gain of nearly 11%
This recent increase in price is bringing the market closer to full price recovery but it is still below the highs set in 2014.
Townhome (Row)
Row sales, new listings, and inventory levels have all increased since the start of the year but are much lower than last year.
There is just 1 Month’s Supply on the market - this is ridiculously low and is putting significant upward pressure on prices.
Benchmark prices reached $378,100, a YoY gain of nearly 8%
The North East and South districts saw the strongest price growth, while the West district had the lowest year-over-year gains.
Detached & Semi-Detached (Duplex)
Lower listings and higher lending rates have led to a steep pullback in detached sales, with only 1,145 sales in March, falling below long-term trends.
Despite the drop in sales, inventory levels remain comparable to the lowest March levels recorded in 2006 with just 1.3 Months of Supply available.
Persistently tight market conditions have resulted in further price growth, with the detached benchmark price reaching a new record high of $649,800 in March.
Conditions for lower priced units are tighter due to a shift in supply levels, with nearly 63% of new listings priced over $600,000, up from 48% last year.
Rental Market
Record population growth continues to put pressure on the housing stock in Calgary. As called last month, the level of growth of 30-40% was not sustainable and we are seeing the market take a little bit of a breather. Spring is usually a busy time of year for rentals so it will be interesting to see what happens to prices over the next 3 months.
The median rent for an apartment in Calgary (according to Zumper) is now:
1 Bedroom: $1,678/mo (40% increase YoY)
2 Bedroom: $1,920/mo (38% increase YoY)
3 Bedroom: $2,200/mo (35% increase YoY)
There is no rent control in Calgary so some renters will have sticker shock when it comes time to renew their leases.
Final Thoughts
Calgary is the best performing major real estate market in Canada - hands down! The market across all housing types is in seller's territory, with low inventory levels and high demand driving up prices. I see no end in sight and I expect this to accelerate if interest rates remain unchanged or start going down.
Now is the time to be investing in Calgary real estate - the boom that has been 3 years in the making is just starting.
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.