CREB® released its February 2023 figures on March 1. Sales, new listings and inventory all rose from January, as usual for the season, but supply barely improved.
Calgary benchmark price by type, February 2023
The main points
- Sales: 1,740, below last year’s record for February but above the 2015–2020 levels.
- New listings: 2,389, below the long-term trend.
- The sales-to-new-listings ratio was 73% and months of supply were under two, which keeps the market tilted to sellers.
- The benchmark price rose nearly 2% from January and from a year earlier, but is still below the May 2022 peak.
“We are seeing a stronger pullback in new listings, keeping supply levels low and supporting some stronger-than-expected monthly price gains,” said CREB Chief Economist Ann-Marie Lurie. She warned that without more supply, prices could face more upward pressure.
By type
Detached homes reached $635,900. Below $700,000 supply is tight, while above that price the market is moving toward balance. Semi-detached prices rose to $568,100, 3% higher than a year ago. Row homes set a new high of $369,700, and apartments reached $286,000, over 11% higher than last February.
Lowest February inventory since 2006
Inventory rose a little from January, as it usually does at this time of year, but it remained among the lowest February levels since 2006. Both sales and new listings fell from last year’s record for the month. Sales were still stronger than long-term trends and than any February from 2015 to 2020, while new listings fell below long-term trends. When sellers hold back more than buyers do, the market stays tight even with higher rates.
Lurie put it this way: “if we do not see a shift in supply, we could see further upward pressure on prices over the near term.” She also noted that prices are still below the May 2022 peak and that it is early in the year.
Detached: two markets in one
Detached sales and new listings both fell sharply from last year’s record. Inventory moved up over the past two months, but it is still among the lowest for February, and months of supply dropped below two. Supply remains a challenge for lower-priced detached homes, while homes priced above $700,000 are moving into balanced territory. For a family looking at a $650,000 home, that is a very different market from one shopping at $900,000.
Semi-detached
Semi-detached inventory is starting to rise from the past few months but remains among the lowest for February. Months of supply fell below two. It is higher than last year’s ultra-low level, yet conditions continue to favour sellers. The benchmark rose nearly 2% in a month, but like detached homes, it is below the May 2022 peak.
Compared with January
In January, sales slowed and new listings were the lowest since the late 1990s, while the benchmark rose slightly to $520,900 after seven monthly declines. February continued that turn. The detached benchmark climbed from $622,800 to $635,900, and apartments from $277,600 to $286,000.
What to do this spring
- Buyers: under $700,000, plan for competition and possibly multiple offers. Know your limit before you see homes.
- Sellers: with few new listings, a well-presented home can attract strong interest; price it against recent sales, not against the May 2022 peak.
- Move-up owners: selling a lower-priced home in a tight segment and buying in a more balanced one above $700,000 is a combination that works well right now.
We will compare March’s figures with these in early April. March is usually the month when spring listings start to arrive in larger numbers, so it will show whether sellers are returning or still holding back.
Until then, the key number to watch is new listings.
