2023 was the year of the condo in Calgary. CREB® figures released on December 1, 2023 show year-to-date apartment condo sales of 7,487, already above last year’s record with one month still to go.
Calgary apartment benchmark price, 2023
Why condos sold so well
- Affordability: with higher rates, many buyers shifted to the lowest-priced homes on the market.
- Rents: CREB has pointed to tight rental conditions all year, which make buying a condo more attractive.
- Supply: condo new listings rose during the year, which made the extra sales possible.
Prices
The apartment benchmark price reached $320,100 in November, up over 1% in a month and 18% in a year. It rose every month from $298,600 in May. Year-to-date gains occurred in every district, with some of the largest in the lower-priced North East and East.
Conditions still favour sellers, with less than two months of supply and inventory similar to last year.
What it means: condos have recovered from years of flat prices. Buyers should now compare condo fees and building health as carefully as price.
How the record built up
The condo surge began in the spring. By the end of June, three strong months had lifted year-to-date apartment sales 11% above 2022. By July, the gain was 16%, and apartments were the only property type with more sales than the year before. In August, year-to-date sales reached 5,582, a record for the city at that point, up nearly 22%. By September, the total was 6,286, up 25%. And in November, sales reached 7,487, beating last year’s record for the full year with a month still to go.
Why buyers chose condos
CREB has given the same reasons all year. With higher lending rates, many buyers either held off or moved to more affordable homes. Tight rental markets made owning more attractive for people who would otherwise rent. And migration, especially from other provinces, added new buyers. In October, CREB said sales gains were mainly from apartment condos as consumers seek affordable options during a period of high rates.
What happened to prices
The apartment benchmark rose from $298,600 in May to $303,200 in June, $305,900 in July, $309,100 in August, $312,800 in September, $316,600 in October and $320,100 in November. Year-to-date gains occurred in every district. The City Centre has lagged: in August, CREB noted that City Centre prices were still below their 2014 highs, partly because supply and demand there are more balanced than elsewhere.
The affordable end is shrinking
One warning sign for first-time buyers came in October: condos priced below $300,000 made up only 38% of apartment inventory, down from 53% a year earlier. As prices rise and the cheapest units sell first, the entry point to ownership moves up.
Compared with other property types
In November, the detached benchmark was $699,500, semi-detached $628,700 and row $429,100. A typical condo still costs less than half the price of a typical detached home, which explains why so many buyers start here.
Practical takeaways
- Buyers: review condo documents carefully, including the reserve fund study, fees and any special assessments.
- Investors: strong rental demand supports condos, but prices are 18% higher than a year ago; run the numbers with today’s prices and rates.
- Owners thinking of selling: with less than two months of supply, conditions still favour you.
What to watch in 2024
CREB’s Q3 report, released in November, expects more new listings and more housing starts in 2024, with sales and prices both rising but price growth slowing as the market moves towards balance. For condos, a key question is how many new apartment buildings, including purpose-built rentals, reach completion. More rental supply could ease some of the pressure that pushed renters to buy in 2023.
