The Calgary Real Estate Board (CREB®) released its year-end figures on January 3, 2023. Even with a slower second half, 2022 set a new record: 29,672 homes sold in the city.
Calgary: 2022 annual benchmark price growth by type (rounded)
A year of two halves
Sales were very strong in spring, then eased as interest rates rose quickly in the second half. New listings fell back at the same time, so inventory kept shrinking. In December there were only 2,214 homes for sale, the lowest December level in over a decade.
The total benchmark price was $518,800 in December. That is nearly 5% below the May peak but almost 8% higher than a year earlier. For the year as a whole, prices were more than 12% higher than in 2021.
By type of home
- Detached: sales fell over 7% for the year. The December benchmark price of $619,600 was about 4% below the June high, but the annual gain was over 14%.
- Semi-detached: annual prices were nearly 12% higher than in 2021.
- Row: a record 5,153 sales, with annual prices nearly 15% higher. Inventory was the lowest since 2013.
- Apartment: sales rose 50% to a record 6,221, helped by first-time buyers and investors, and prices gained nearly 9%. Even so, apartment prices stayed well below their 2014 highs.
What it means: Calgary enters 2023 with very little supply. Higher rates have cooled demand, but low inventory is keeping prices firm, especially for lower-priced homes.
Why prices held up
CREB’s Chief Economist Ann-Marie Lurie said conditions changed significantly during the year as steep rate increases slowed sales in the second half. Even so, activity stayed better than before the pandemic and above long-term trends, and persistently low inventory prevented a bigger price adjustment. New listings fell along with sales, so buyers who stayed in the market still had little to choose from.
Detached: the upper end loosened first
The detached segment felt most of the impact of higher rates. New listings grew in the last quarter, but mostly in the upper price ranges, which brought more balance there. Supply of lower-priced detached homes stayed low compared with sales, so that part of the market still favoured sellers. Annual price growth ranged from 19% in the South East, North and North East districts to nearly 8% in the City Centre.
Semi-detached and row
Semi-detached sales fell nearly 3% from 2021’s record, but activity was still far stronger than long-term trends. The benchmark price eased nearly 4% from its May peak, and the North district had an annual gain of over 18%. Row homes were the year’s standout: sales were nearly double long-term trends as higher rates pushed buyers towards more affordable options, and prices were only just over 1% below their June peak by December.
Apartments: investors returned
Apartment condominium sales rose above the previous year’s levels all year. CREB credits demand for affordable homes and renewed investor interest thanks to rental rate growth. More new listings came on, but not enough to keep up, and inventory fell to levels not seen since 2013. After several years of oversupply, prices rose in every district.
What it means for 2023
- Buyers: lower-priced homes of every type are still competitive; get pre-approved and be ready to move quickly.
- Sellers of higher-priced homes: the upper end is more balanced, so pricing and presentation matter again.
- Apartment owners: 2022 was the first strong year in a long time; prices are still below 2014 highs.
CREB presented its forecast for 2023 at its conference on January 24.
For buyers, the main message of the year-end numbers is that supply, not demand, is the constraint going into 2023. Even with fewer buyers in the market, there are not many homes to choose from, and that is why prices have stayed above last year’s levels.
