CREB® reported on June 1, 2023 that May sales rose to 3,120, a record for the month, driven mostly by apartment condos.
Calgary benchmark price: 2022 monthly peak vs May 2023
The main points
- The sales-to-new-listings ratio was 85% and months of supply was one month.
- The benchmark price reached $557,000, over 1% higher than in April and nearly 3% above last year’s monthly peak of $543,000.
- “Calgary’s housing market continues to exceed expectations,” said CREB Chief Economist Ann-Marie Lurie, pointing to the job market and population growth.
By type
- Detached: 1,486 sales, down 8%. The price reached $674,000, and every district set a record. Gains ranged from 12% in the East to 2% in the City Centre.
- Semi-detached: 279 sales on 269 new listings, under one month of supply, and prices above $600,000 for the first time.
- Row: an 89% ratio and inventory down 50%. The price reached $390,500.
- Apartment: 858 sales, up 36%, and 1,025 new listings. The price of $298,600 is back at 2014 levels.
What it means: the spring market is running hotter than forecast. Expect competition at every price point, not just the entry level.
A turn after a slow start
Sales were down sharply at the start of 2023, and May’s record has not made up for those earlier declines. It does show a shift. New listings were still lower than last year, so inventory kept falling. With an 85% sales-to-new-listings ratio and one month of supply, conditions continue to favour sellers. The total benchmark reached $557,000, over 1% higher than in April and nearly 3% above last year’s monthly peak of $543,000.
Lurie said the higher rate environment and recent rent increases have pushed more people towards apartment condos, and that the recent rise in new apartment listings provided enough options to support the sales gain. Calgary continues to benefit from a relatively healthy job market and population growth, which keep demand strong for every type of home.
Detached: tight in every price range
Rising sales of homes above $600,000 were not enough to offset declines in the lower price ranges. New listings keep falling below $700,000, leaving little choice for buyers of lower-priced detached homes. New listings did improve for higher-priced homes, but demand was strong enough to keep conditions tight across all price ranges. The detached benchmark is now over 4% above last year’s peak of $647,000.
Semi-detached and row
Semi-detached sales rose to near-record levels for May. It was the seventh straight monthly price increase, and the strongest annual gain, nearly 12%, was in the most affordable East district. Row sales were lower than last year, likely because of the lack of supply: row inventory was half of last year’s level. Row prices are nearly 9% above last year’s peak of $359,600, with gains of over 15% in the North East, South and East.
Apartments: back to 2014 levels
Apartment new listings rose 8% from last year, but an 84% ratio meant inventory stayed 23% below May 2022. Apartment prices have finally returned to 2014 levels, although only the North, North West, West and South East districts have fully recovered. Annual growth ranged from 16% in the North to 10% in the City Centre.
Compared with April
April sales were 2,690 and May sales 3,120. The total benchmark went from a record $550,800 to $557,000, and the detached benchmark from $661,900 to $674,000. The monthly pace of price growth slowed slightly, but it has not stopped.
Practical takeaways
- Buyers: with one month of supply, the best homes sell quickly; have your financing and conditions ready.
- Sellers: prices are at records, but buyers are still watching rates closely, especially after the Bank of Canada’s next decision on June 7.
- Condo owners: 2014 prices are back in several districts; ask for a current valuation if you have been waiting to sell.
