Calgary Real Estate Market - July 2023 Housing Market Update

As of August 1, 2023, the Calgary real estate market continues to soar, with home prices reaching new heights. July marked the seventh consecutive month of price gains, reflecting the strongest July sales levels on record. Despite rising interest rates, the market remained resilient, with a year-over-year sales increase of 18 per cent, driven mainly by significant gains in the affordable apartment condominium sector. However, year-to-date sales have declined by 19 per cent compared to the previous year.

Sales and new listings followed seasonal trends and decreased compared to the previous month, but this had minimal impact on inventory levels, which remain near a record low set in July 2006. The market still heavily favors sellers, with an 82 per cent sales-to-new-listings ratio and only 1.3 months of supply.

Migration to the province and relative affordability have supported the strong demand for housing despite higher lending rates. However, the market continues to struggle with supply in the resale, new home, and rental markets, leading to further upward pressure on home prices.

In July, the unadjusted total residential benchmark price reached $567,700, marking a four per cent increase from the previous peak in May 2022.

Detached homes saw an uptick in sales and new listings in July, but inventory levels remained at their lowest ever reported for July, especially for properties priced below $1,000,000. The unadjusted benchmark price for detached homes rose to $690,500, a monthly gain of nearly one per cent and a seven per cent increase compared to last July.

Semi-detached homes experienced a sellers' market condition, with limited new listings and a sales-to-new-listings ratio above 85 per cent. The unadjusted benchmark price for semi-detached homes reached $616,800, with the most significant monthly gains in the North East and East districts.

The row property market remained in a sellers' market, with high demand and limited new listings, leading to further price gains. As of July, the benchmark price for row properties reached $407,500, a nearly two per cent increase from the previous month and a 14 per cent increase compared to last July.

The apartment condominium market saw a year-to-date gain in sales activity, thanks to recent gains in new listings. However, the market remains tight, with a sales-to-new-listings ratio of 84 per cent and a months of supply of 1.4 months. The unadjusted benchmark price for apartment condominiums reached $305,900, a nearly one per cent increase from the previous month and over 12 per cent higher than last July.

The sales-to-new-listings ratio remained at 77 per cent, contributing to a modest increase in inventory levels. However, conditions in Cochrane are still tight, and the unadjusted benchmark price rose nearly one per cent to $529,700.

The sales-to-new-listings ratio remained elevated at 86 per cent, preventing significant shifts in inventory levels. The market in Okotoks still favors sellers, with the benchmark price reaching $586,900, over seven per cent higher than last year.