Calgary Real Estate Market Report: August 3, 2023 Update | Interactive map - WOWA.ca (2023)

Calgary real estate market overview

The median home price in Calgary in July 2023 was $539,461. This is 9.8 percent higher than the average sales price last July and 2.3 percent lower than the previous month. Median prices for detached homes were $731,005, showing a 15% year-over-year increase and a 0.1% month-over-month increase. The median townhome price was $593,736, up 16% from last year and down 5.4% from last month. The median townhouse price was $405,654, up 14% from July 2022 and down 0.8% from June 2023. The median condo price was $308,575, up 12% from July 2022 and 2, 2% more than in June 2023.

Average house prices do not show the true extent of price changes due to the substitution effect. When house prices change ormortgage ratesreduce the purchasing power of consumers, they redirect their purchases to more affordable options. As a result, the average price may under-represent real estate price inflation. Furthermore, luxury homes have an outsized effect on average prices, and fluctuations in the number of luxury home sales cause fluctuations in average prices.

there is a changetypes of assetsthat Calgary buyers are interested in. Over the past two years, the composition of home sales in the Calgary real estate market has shifted toward condos rather than single-family homes. The benchmark home price increased 36% over three years and 5.1% year over year to $567,700 in Calgary.

Since July 2023, 2,647 homes have changed hands. This sales figure shows record activity compared to last July's levels. 3,247 new listings in the City of Calgary were up 2.2% year-over-year (year-over-year) but down 18% month-over-month (month-over-month) during July 2023.

The ratio of sales to new listings was 82%, signaling a market downturn in summer 2023. Inventories fell 35% year-on-year to 3,488 units, although little has changed since June. Inventories are currently at 1.3 months of home sales, compared to 2.4 and 1.1 months in July 2022 and June 2023, respectively.

Year-to-date, there were 16,956 sales and 21,521 new listings, down 29% and 25% compared to the same period in 2022.

In July 2023.

• Calgary's benchmark detached home price rose 7.6% over last year to $690,500, while up 0.8% over the previous month.
• The sale of 1,197 detached houses represents a growth of 5.8% compared to the previous year. Currently, the inventory is 1.4 months of detached house sales.
• Benchmark townhouse prices rose 7.4% from last year to $616,800 and were up 0.6% from the previous month.
• Townhouse sales rose 22% year-on-year to 211 units. There is currently a 1.2 month supply of townhouses for sale.
• Benchmark townhouse prices rose 14% year-over-year and 1.9% month-over-month to $407,500 in July 2023.
• The number of townhouses sold increased by 8.1% year-on-year to 467 units. Inventory is currently at 0.9 months of online home sales.
• Benchmark home prices rose 12% year-over-year and 0.9% month-over-month to $305,900.
• The number of sold apartments increased by 50% compared to the previous year to 772 units. Currently, the stock is 1.4 months of apartment sales.

As another price indicator, we can also look at Calgary's median home prices, which rose 12% year-over-year to $493,000. Calgary median home prices are 3.3% lower than in June 2023. Median single home prices reached $653,150, up 13% compared to last July. Median townhouse prices hit $540,000, up 26% year over year. Median home and townhouse prices reached $390,000 and $281,000, respectively, increasing 12% and 13% annually.

In the last three years, monetary policy has been the main driverCanadian real estate market. Real estate markets boomed during the pandemic as the money supply expanded faster than ever before. During the second half of 2022 restrictionsMonetary policy of the Bank of Canadainterrupt the activity of the real estate market, increasinginterest rates in canada. Over the past year and a half, the Bank of Canada has raised interest rates to lower themInflation measured by CPI.

On the one hand, higher interest rates reduce the present value of the rent that can be earned on a typical home, thereby reducing the home's value. On the other hand, they mean more interestCanadian mortgage rates, resulting in a largermortgage paymentsand reduceavailability at home. Therefore, the average price of a house in Canada peaked in February 2022 and decreased by 25% by January 2023.

In January 2023, the BoC halted rate hikes and the market began to crave a rate cut. The seasonal effect of spring iexpectations of lower mortgage ratesfueled a resurgence in the housing market in 2023. Average Canadian home prices rose 19% from their January lows in May 2023. As of June 2023, the BoC has started raising rates again and the Canadian housing market is slowing again. But Calgary's real estate market is bucking the national trend and reaching new highs (at least in terms of benchmark prices) as demand far outstrips supply. The gap between supply and demand is so great that even the highest prime interest rates of the last 22 years have not been able to reduce demand enough to bring it back in line with supply.

Although monetary policy affects Canada as a whole, it is important to remember that real estate markets are local phenomena.Ontario real estate marketeBritish Columbia real estate marketmainly affect the average price of houses in Canada. These two markets became bubble territory when expansionary monetary policy offered real estate investors and speculators virtually free money during the pandemic.

In contrast,Alberta real estate marketit avoided a pandemic bubble and remained relatively affordable even at its peak. The benchmark price in the Calgary region is 25% higher than in January 2015. This increase in benchmark prices means the Cumulative Annual Growth Rate (CAGR) since 2015 has been just 2.8%. This dismal growth suggests downside risk to the Calgary real estate market is limited. However, one could argue that Calgary homes were overpriced in early 2015.

Alberta in general and Calgary in particular enjoy more economic freedom (and arguably more natural resources) than many other parts of Canada. As a result, Alberta offers some of the highestincome and wages in all Canadian provinces, and Calgary offers some of the highest incomes and wages among Canadian cities.

Alberta's housing market in general and Calgary's housing market have avoided a housing bubble in recent years. Therefore, the Alberta real estate market is much more affordable than the Ontario real estate market or the British Columbia real estate market. Likewise, the Calgary real estate market is much more affordable than other major Canadian real estate markets, espToronto real estate marketit's onVancouver real estate market.

Strong labor and affordable housing markets have resulted in interprovincial migration to Alberta. This migration is another favorable factor for the real estate market in Calgary. Also, keep in mind that Calgary is often referred to as the "Energy Capital of Canada" due to its significant presence in the oil and gas industry. The performance of the energy sector has a significant impact on the city's economy and real estate market. Fluctuations in oil prices can affect real estate demand and real estate values ​​in Calgary.

Despite being sensitive to changes in the energy sector, which can affect job growth, migration patterns and consequently the real estate market, Calgary has historically had a stable and prosperous economy thanks to its diverse industries, including oil and gas, agriculture, manufacturing, technology and finance. .

Calgary house prices

Calgary real estate market statistics for all property types in July 2023

Type of property distribution

Market overview for detached houses in July 2023

July 2023 Townhouse Market Overview

Overview of the housing market in July 2023

Overview of the market for multi-family apartments in July 2023

Unlike other large metropolitan areas in Canada such asreal estate in torontoorreal estate in vancouver, just two years ago, apartments represented a relatively small portion of the Calgary real estate market. Two years ago, they accounted for about one-seventh of all home sales and a much smaller share of dollar sales due to lower prices. Today, they make up about a third of the homes sold on the Calgary real estate market.

Analysis of the Calgary region by region as of July 2023

Glossary and definitions

MLS® HPI:The MLS® Home Price Index (HPI) is a Canadian Real Estate Association (CREA) index that tracks neighborhood home prices. It allows Canadians to quickly compare house prices across Canada and across different time periods, without having to consider specific property characteristics. Unlike market prices, which can fluctuate from month to month based on seasonal dynamics, the HPI provides a stable view that follows trends over a longer period of time. The HPI is revised every year in May to adjust for changes in the real estate market.

MLS® HPI reference price:The MLS® Home Price Index (HPI) reference price is the HPI translated into an actual price.

Secure Layers:Stratum insurance is insurance used by a stratum such as a condominium to cover damage to common areas and property and liability to the strata. It may also include fixtures made or installed as part of the original construction of each unit, even if they are not of the usual construction. Insurance can cover:

• Buildings and structures associated with layers, including common areas such as roofs, garages, sidewalks, gyms, swimming pools, etc.
• Liability for any property damage or personal injury sustained on Strata property
• Any accessory that is part of the "standard unit" or the original construction of each unit

Strata insurance generally does not cover personal items and appliances that are part of the residential unit. It also does not cover damage caused by individual unit owners, such as in the case of water damage caused by a unit owner. They are usually covered by personal home insurance.

types of assets

detached house:A detached house is your standard family home. It is a detached residential building with a separate title or a legally unique entity.

twin house:A townhouse is similar to a detached house, except that it shares a wall with another house. This pair of houses must form a separate building and each must have separate titles or legally two separate units. There can only be two houses in a semi-detached building.

Houses:A semi-detached house is the middle ground between a detached/semi-detached house and an apartment in a multi-storey building. Like detached and semi-detached houses, they are often single-family units that have their own lot and can be attached to other units. However, like condominiums, they usually have to pay co-owner maintenance fees and may share some common characteristics with their neighbors.

Apartment in an apartment complex:This category includes all apartments and multi-apartment buildings. These are sets of residential units with common areas such as corridors, parking lots, staircases, etc. They can be low, medium or high buildings. Unlike townhouses, there are no parts of the plot (building land) where access is reserved for only one owner or tenant. There may be privately owned units and spaces within the building.

plexusimathese are multi-story buildings with two to four individual units, usually one on each floor. They are a mainstay in Montreal and other cities in Quebec. Each unit is usually individually accessed via an external entrance with the upper floors connected by stairs.

asset classes

Perfect features:Freehold is any property where the owner owns both the house and the land on which it is built. Common freehold types include: detached houses, semi-detached houses, some semi-detached houses and agricultural land.

Apartments:A condominium or condominium is any property where the owner owns the house (or unit), but shares ownership of the land and other amenities with a condominium company. Common types of multi-residential properties include apartments and some townhouses.

Purchase:A lease describes a situation in which different entities own the land and the building built on the land. The owner of the building has leased the land and pays rent to the landlord as long as he owns the building on the land.