For most of the last decade, Calgary’s apartment condo market had more sellers than buyers. CREB®’s April 2023 report, released on May 1, shows how much that has changed.
Calgary apartment benchmark price
The numbers
- The apartment benchmark price reached $299,400 in April, up from $277,600 in January and over 10% higher than a year earlier.
- That is close to the previous monthly high of $306,600, set in November 2014.
- The North, North West and South East districts set new highs in April.
- With 734 sales and 953 new listings, the sales-to-new-listings ratio was 77% and months of supply was 1.5.
Why condos are in demand
Higher mortgage rates are pushing buyers toward more affordable homes, and rising rents have brought investors back. Apartments were also the only type of home in April with more sales than a year earlier, thanks to more new listings.
What it means: condo buyers still have a little more choice than in other segments, but the window of lower prices is closing. Owners who bought near the 2014 peak may finally be close to breaking even.
How far prices have come this year
The apartment benchmark was $277,600 in January. Four consecutive monthly gains brought it to $299,400 in April, an increase of more than $20,000 in four months and over 10% higher than a year earlier. Only $7,200 now separates it from the city-wide record. Gains across all districts have not yet produced a new city-wide high, but the North, North West and South East districts already reported new records in April.
Tight, but less tight than other types
With a 77% sales-to-new-listings ratio and 1.5 months of supply, apartments are not as tight as other property types in Calgary. Row homes, for example, had a 95% ratio and under one month of supply in April. Still, apartment conditions are a sellers’ market, and that keeps prices rising. Inventory rose from March thanks to the boost in new listings, but stayed below last year’s level.
Why this matters after a long slump
From 2015 onwards, Calgary built and listed many condo apartments while the local economy was weak, and prices stayed below their 2014 peak for years. Many owners who bought near the top waited a long time to break even. CREB’s year-end report for 2022 already noted that apartment inventory had fallen to levels not seen since 2013, with sales at a record 6,221. The spring of 2023 is extending that recovery.
Who is buying
Two groups are driving demand. First-time buyers facing higher rates are choosing apartments because they cost less than other types of home. Investors have returned as rents have increased. Both groups are sensitive to interest rates and condo fees, which is worth keeping in mind if rates move again.
What it means for buyers and owners
- Buyers: compare the full monthly cost, including condo fees and property tax, not only the price. Ask for the reserve fund study and recent board minutes.
- Owners thinking of selling: prices are close to the 2014 record; a recent sale in your own building is the best guide to value.
- Investors: rents have risen, but so have purchase prices and financing costs; run the numbers for each unit.
What to watch next
If the benchmark keeps rising at the pace of the past four months, apartments could pass the 2014 record soon. Two things could slow that: more new listings, as owners who waited for prices to recover decide to sell, and higher borrowing costs if rates move again. We will report on the May figures in early June, and on whether the city-wide record finally falls.
