Apartment condos were the story of May 2023 in Calgary. CREB® figures released on June 1 show sales of 858 units, 36% more than a year earlier.
Calgary apartments, May 2023: change vs May 2022
What happened
- Year-to-date apartment sales are up 4%, a new record.
- There were 1,025 new listings, 8% more than last May, which made the extra sales possible.
- The sales-to-new-listings ratio was still 84%, so inventory stayed 23% below May 2022 and months of supply just over one.
- The benchmark price reached $298,600, up over 1% in a month and nearly 11% in a year, a return to 2014 levels.
Only the North, North West, West and South East districts have fully recovered to past highs. Annual gains ranged from 16% in the North to 10% in the City Centre.
CREB’s Ann-Marie Lurie linked the shift to higher interest rates and rising rents, which make owning a condo more attractive for both first-time buyers and investors.
What it means: condos are no longer the easy buy they were a few years ago. If you are comparing renting and buying, run the numbers with today’s rents and rates.
New listings made the record possible
Apartment sales could rise because more owners listed. There were 1,025 new listings in May, 8% more than a year earlier. Even so, the sales-to-new-listings ratio stayed high at 84%, so inventory hardly changed and remained 23% below May 2022. With just over one month of supply, apartment conditions are as tight as they have been in years.
Lurie said the higher rate environment and recent rental rate gains have driven more consumers to seek apartment condominium units, and that the rise in new apartment listings provided enough options to support the sales gain.
Prices back at 2014 levels
The apartment benchmark rose over 1% in a month and nearly 11% in a year. For the first time, it has returned to 2014 levels. The recovery is uneven: only the North, North West, West and South East districts have fully recovered to their previous highs. Annual price growth ranged from 16% in the North to 10% in the City Centre.
Why apartments, and why now
Rising rates have changed the maths for buyers. A household that might have bought a row home a year ago may now find an apartment is the only option that fits its budget. At the same time, higher rents make buying more attractive for some renters, and they have brought investors back to the market. Apartments were the only type of home with year-to-date sales above last year, while detached sales fell 8% in May.
Compared with April
In April, there were 734 apartment sales and 953 new listings, and the benchmark was $299,400. In May, both sales and listings grew. The benchmark figure for May is $298,600; CREB revises its benchmark series as new data arrive, so small differences between months can reflect revisions as well as market change.
What it means for buyers and owners
- First-time buyers: competition is strong. Look at buildings with healthy reserve funds and reasonable fees, and compare total monthly costs with rent.
- Investors: check the bylaws on rentals, and remember that today’s rent increases may not continue at the same pace.
- Owners who bought near 2014: in four districts, you can now sell near or above your purchase price.
- Everyone: condo fees and special assessments can change; read the documents before you remove conditions.
How apartments compare with other types
In May, row homes had an 89% ratio and inventory half of last year’s, and semi-detached homes had under one month of supply. Apartments, at 84% and just over one month, are slightly less tight, but they are the segment where sales are growing fastest.
