Among all types of homes in Calgary, row homes had the tightest market in February 2023, according to CREB® figures released on March 1.
February 2023: change in benchmark price vs a year earlier
Row homes
There was only one month of supply, and 87% of new listings were matched by a sale. Sales eased from record levels but remained strong as demand shifted to more affordable homes. The benchmark price rose over 2% in a month to $369,700, 9% higher than a year earlier. Unlike other types, row prices reached a new high.
Apartments
Apartment sales held up better than other types thanks to new listings, but inventory was still low compared with the past eight years and months of supply fell below two. The benchmark price reached $286,000, nearly 3% higher than in January and over 11% higher than a year ago. Prices remain nearly 7% below the 2014 peak.
What it means: the affordable end of the market is where competition is strongest. Townhome buyers should be ready for fast decisions, and sellers of well-kept row homes are in a strong position this spring.
Why row homes are the tightest segment
Row homes sit between apartments and detached houses on price, and they often offer more space than a condo apartment with lower costs than a detached home. With mortgage rates much higher than a year ago, many buyers have moved down from detached homes to townhouses, and some first-time buyers who might have bought an apartment are stretching for a row home with a small yard. Sales have eased from record levels, but they have stayed relatively strong for February as demand shifts towards affordable homes.
An 87% sales-to-new-listings ratio means almost nine of every ten homes that came on the market found a buyer within the month. One month of supply means that, if no new listings arrived, the current inventory would sell out in about a month. Both numbers point to a strong sellers’ market.
Row prices compared with last month and last year
In January, the row benchmark was $361,400, just below the June 2022 high of $363,700. February’s gain of over 2% pushed it to $369,700, above that high. The other property types are still below their 2022 peaks, which makes row homes the only segment to reach a new high so far.
Apartments: catching up to 2014
Apartment sales did not fall as fast as other types, partly because more new listings came onto the market. Still, strong sales compared with listings kept February inventory low compared with the past eight years. Apartment prices are now about 7% away from their 2014 peak, a gap that has narrowed every month this year.
What it means for buyers and sellers
- Row buyers: book showings quickly, have a deposit ready and talk to your lender about how fast they can confirm financing.
- Condo buyers: ask about special assessments and the reserve fund; high demand does not make a poorly managed building a good buy.
- Row sellers: this is a strong position, but buyers still compare; small repairs and good photos can make the difference.
- Investors: purchase prices are rising faster than in other types, so recheck your rental numbers.
How row homes compare with the city as a whole
For the city as a whole, the sales-to-new-listings ratio was 73% and months of supply were under two. Row homes, at 87% and one month, are clearly tighter than average. The total benchmark rose nearly 2% in February, while the row benchmark rose over 2%. If spring brings more townhouse listings, the pace could slow; if not, row homes are likely to keep leading the market.
