CREB® reported on February 1, 2023 that new listings in January fell to the lowest level since the late 1990s. Listings declined in almost every price range, but fastest for lower-priced homes.
Calgary benchmark price by type, January 2023
The main points
- Sales eased from last year’s high levels but stayed in line with long-term trends. Detached homes made up only 47% of all sales.
- Inventory: 2,451 homes for sale, 43% below the long-term trend for January.
- Inventory for homes under $500,000 fell nearly 30% from a year earlier, while it improved above that price.
- Prices: the benchmark price rose slightly to $520,900, ending a seven-month slide. It is 5% higher than a year ago but below the May 2022 high of $546,000.
“Higher lending rates are causing many buyers to seek out lower-priced products,” said CREB Chief Economist Ann-Marie Lurie, adding that higher rates may also be holding back move-up buyers, which limits supply of lower-priced homes.
Different trends by district
The detached benchmark price was $622,800. Prices eased in the higher-priced City Centre but rose modestly in other districts. Apartment prices climbed to $277,600, led by the North East and East.
What it means: at the lower end, buyers still compete for few listings. Above $500,000, there is more choice and more room to negotiate.
Why listings are so scarce
New listings in January were the lowest since the late 1990s. Lurie said higher rates are pushing buyers towards lower-priced homes, but they are also likely preventing some move-up activity. When an owner of a condo or starter home decides not to buy something larger, that starter home never comes to market. The result is a market with different conditions depending on price range.
Overall inventory was slightly lower than last January, but the details differ. Supply of homes under $500,000 fell nearly 30% from a year earlier, while supply above that level improved. For buyers, the same city now looks like two different markets.
Detached and semi-detached
Detached sales saw the largest pullback, even though inventory rose from a year earlier. Higher rates are cooling demand for higher-priced homes, which lets inventory build up there, while limited supply holds back sales in the lower ranges. The detached benchmark was slightly higher than in December but still below its May 2022 high.
Semi-detached sales slowed compared with last year but stayed above levels before the pandemic. Inventory was even lower than last January’s already low level. Most districts posted monthly price growth, but prices eased in the City Centre, so the city-wide semi-detached benchmark dipped slightly from December. It was still nearly 6% above January 2022.
Compared with last month
December’s benchmark was $518,800, so January’s $520,900 is a small step up, the first after seven monthly declines. The gap to the May 2022 high of $546,000 is still about $25,000. One month does not make a trend, but it shows that the decline since spring has not turned into a slide.
Practical takeaways
- Buyers under $500,000: expect competition. Arrange financing first and look at a few communities, not just one.
- Buyers above $500,000: there is more choice, and conditions and price can be negotiated.
- Owners thinking of moving up: your starter home is in demand; selling into a tight market while buying in a calmer one can work in your favour.
Row and apartment homes
The shift towards affordable homes is clearest in the row and apartment segments. Row prices rose nearly 1% from December to $361,400, only slightly below the June 2022 high, and supply stayed under two months. Apartment prices reached $277,600, up 1% in a month and nearly 10% in a year, which narrows the gap to the record set in 2014.
