With mortgage rates much higher than a year ago, more Calgary buyers are choosing townhomes and apartment condos. CREB®’s January 2023 figures, released on February 1, show how that is affecting these two segments.
Benchmark price: 2022 monthly high vs January 2023
Row homes
Sales slowed from last year’s record but stayed well above long-term trends. New listings were more than 20% below normal for January, and months of supply stayed under two. The benchmark price rose nearly 1% in a month to $361,400. That is over 12% higher than a year ago and only slightly below the June 2022 high of $363,700.
Apartment condos
Apartment sales fell less than other types, helped by new listings. Inventory was still the lowest for January since 2014. The benchmark price reached $277,600, 1% higher than in December and nearly 10% higher than a year earlier, led by the North East and East districts. Prices are getting closer to the record set in 2014.
What it means: the overall market looks calmer, but the most affordable homes are not getting cheaper. If you are buying a first home, get pre-approved early and be ready to act when the right listing appears.
Why buyers are moving to row homes and condos
CREB’s Chief Economist Ann-Marie Lurie said higher lending rates are causing many buyers to look for lower-priced homes. A buyer who qualified for a detached home a year ago may now qualify only for a townhouse or an apartment. That shift shows up in the numbers: detached homes made up only 47% of all January sales in Calgary, and row and apartment prices kept rising while the overall market was calmer.
Row homes: tight supply, firm prices
Row sales would likely have been stronger if more homes had been listed. New listings dropped from last year, and the small changes in sales and listings did little to change the low inventory. With supply below two months, there was no downward pressure on prices. At $361,400, the benchmark is just $2,300 below its June 2022 high.
Apartments: the gap to 2014 is narrowing
Apartment sales did not fall as fast as other types, partly thanks to new listings. Even so, months of supply were lower than at the start of 2022. The North East and East, the lowest-priced districts for apartments, led the monthly gain. The city-wide apartment price is moving closer to the record set in 2014, a level many condo owners have waited years to see again.
Compared with December
Both segments moved up in January. Row prices rose nearly 1% in a month and apartment prices 1%. At the same time, the total city benchmark rose only slightly, to $520,900, after seven monthly declines. Row and apartment homes are leading the market, not following it.
What it means for buyers and owners
- First-time buyers: competition is strongest in exactly the segments you are looking at. Have your pre-approval ready and keep your conditions simple.
- Condo buyers: review the condo documents, reserve fund study and fees carefully; a strong market does not remove the need for due diligence.
- Owners of row homes and condos: if you were waiting for prices to recover before selling, the market is close to that point now.
- Investors: rents and prices are both rising, so check the numbers at today’s rates, not last year’s.
Keep an eye on new listings over the next few months. Spring usually brings more homes to market, and if row and apartment listings rise faster than sales, conditions in these segments could become more balanced. If they do not, prices could move above their previous highs.
We will report on both segments again in early March.
