CREB® released its March 2023 figures on April 3. Spring activity picked up, but supply did not keep pace.
Calgary, March 2023: sales, new listings and inventory
The main points
- Sales: 2,432, against 3,318 new listings, a sales-to-new-listings ratio of 73%. Both were about 40% lower than in March 2022.
- Inventory: 3,233 homes, the lowest for March since 2006, leaving just over one month of supply.
- Prices: the total benchmark price was $541,800, up 2% from February and nearly 1% from a year ago. It remains below the May 2022 high of $546,000.
“The challenge has been centered around supply,” said CREB Chief Economist Ann-Marie Lurie. Owners may be reluctant to list when they cannot find their next home, and higher lending rates also reduce the incentive to move.
By type
Detached sales were 1,145, the only type below long-term trends, yet the benchmark price hit a record $649,800. Semi-detached reached $581,300, row a record $378,100 and apartments $293,500 on 682 sales. Apartment inventory was only 1,000 units.
What it means: spring buyers face limited choice and rising prices. Sellers who also need to buy should plan both moves together.
Lowest March inventory since 2006
Sales and new listings both improved from the start of the year, and the gap between them allowed inventory to rise, as expected for the season. Even so, the 3,233 homes for sale were the lowest March level since 2006, leaving just over one month of supply. Conditions are not as tight as in March 2022, but buyers still have limited choice. CREB notes that price growth over the first quarter was stronger than expected because of these persistent sellers’ conditions.
Lurie said sales have eased from record levels but remain stronger than before the pandemic thanks to recent gains in migration. The problem is supply: owners may be reluctant to list when they struggle to find another home, and higher lending rates reduce the incentive to move.
Detached: fewer affordable listings
Supply at the lower end has shifted. Nearly 63% of detached new listings so far this year were priced over $600,000, compared with 48% last year. That leaves fewer options for buyers with smaller budgets, and it helps explain why the detached benchmark set a record even as sales fell below long-term trends.
Semi-detached, row and apartment
Semi-detached homes had a 78% sales-to-new-listings ratio. Many buyers are turning to them because of higher rates, and conditions were especially tight below $600,000. The benchmark rose over 2% in a month, but it is still just below the May 2022 high of $584,700.
Row homes had one month of supply. Price growth was strongest in the North East and South, and weakest in the West. The 682 apartment sales were 11% below last year’s record, while new listings fell 8%. Apartment prices are approaching full recovery: the monthly high was $306,600 in November 2014.
Compared with February
In February, Calgary had 1,740 sales and 2,389 new listings, with a 73% ratio. March brought more of both, and the ratio stayed at 73%. The total benchmark rose from February levels, and the detached benchmark went from $635,900 to a record.
Practical takeaways
- Buyers: be prepared for competition, especially for homes under $600,000.
- Sellers: spring demand is strong; a realistic price and good presentation still bring the best results.
- Owners who want to move: consider a longer possession date or a conditional purchase, so you are not stuck between homes.
CREB will publish its first-quarter report later in April, with a closer look at how the first three months compare with the record start to 2022. We will also watch whether April’s new listings finally rise faster than sales.
