Calgary Real Estate Statistics March 2023

Prices rise as conditions favours the seller

Sales and new listings have increased over the levels reported at the start of the year. As a result, the diversity between sales and new listings helped some expected monthly inventory level gains. Although, the 3,233 available units reflected the lowest March Inventory levels since 2006 and left the months of supply just above one month, firmly in the seller's territory. Low inventory levels left purchasers with a selection of choice, even though conditions are not as tight as last March. Once again which is driving up the prices of homes.

Residential home prices touched $541,800 in March, a two per cent gain over last month and nearly one per cent higher than prices recorded last year. Although prices continue below the May 2022 high of $546,00, the race of price growth over the first quarter has become stronger than anticipated due to the constant seller's market conditions.

"As expected, sales have eased from record levels while remaining stronger than they were before the pandemic, thanks to recent gains in migration supporting demand" said CREB Chief Economist Ann-Marie Lurie.

"The challenge has been centred around supply. As a result, existing homeowners may be reluctant to list as they struggle to find acceptable housing alternatives in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home"

March reported 3,318 new listings compared to the 2,432 sales, resulting in the sales-to-new listings ratio a bit high at 73 per cent. Although, both sales and new listings have eased by 40 per cent compared to levels, recorded last March.

Detached

Low listings and high lending rates have caused the steep fallback in detached sales. With 1,145 sales this is the only property type where action has fallen below long-term trends for the month. Although, despite the drop in sales, inventory levels continue comparable to the lowest March levels reported in 2006.

The constantly tight market conditions have provided further price growth. The Detached standard price touched a new reported high in $649,800, in March. Conditions are much more condensed at the lower end of the market as supply levels have changed. Nearly 63 per cent of new listings that have come onto the market so far this year are priced over $600,000 much higher than the 48 per cent recorded last year.

Semi-Detached

Sales and new listings recorded a large drop over last year's levels, like other property types, leaving the market extremely condensed with a sales-to-new listings ratio of 78 per cent in March. In addition, higher lending rates have driven purchasers to look out for semi-detached properties. Although, conditions continue extremely condensed for properties prices below $600,000.

Lower inventory levels relative to sales in the market have driven further price gains in March. As a result, the unadjusted standard price touched $581,300 in March, above two per cent higher than last month and nearly two per cent higher than last year's levels. Although, despite the strong gains over the past several months, prices continue shy of the May 2022 monthly high of $584,700.

Row/Townhouse

Levels are significantly lower than last year, new listings and inventory have all trended up compared to levels seen at the beginning of the year, like other property types, levels are significantly lower than last year. Conditions remain to favour the seller, with one month of supply available. The condensed market conditions also forced further upward pressure on prices.

In March, the standard price rose to $378,100, reflecting a year-over-year gain of nearly eight per cent and representing a new monthly reported high. With the lowest year-over-year gains happening in the West district, price growth was strongest in the city's North East and South districts.

Apartment Condominium

A decline of 11 per cent over the last year's reported high, March recorded 682 apartment condominium sales. Keeping inventory levels relatively low at 1,000 units, new listings also eased by eight per cent compared to last year. The low inventory levels compared to sales kept the months of supply well below two months, ensuring the market remains to favour the seller.

The standard price in the city of Calgary touched $293,500, a year-over-year gain of nearly 11 per cent. The recent rise in price is changing this market closer to full price recovery. For example, apartment condominium prices touched a monthly high back in the month of November 2014 at $306,000

Regional Market Facts

Airdrie

The sales-to-new listings ratio rose up to 76 per cent, and inventory level had fallen to the lowest levels for the month since 2014, with 154 sales and 203 new listings in March. The months of supply did slip to the lowest level seen in almost nine months, while conditions are not as condensed as they were last year. The months of supply in Airdrie have not risen above two months since January 2021, and the consistent tightness so far this year has caused prices to trend up again compared to levels seen at the end of the year in 2022.

In March, the standard price touched $497,000, a two per cent gain over last month.Levels are nearly two per cent below last year's and still below last years and still below the monthly peak of $510,700 recorded in the month of April in 2022. It is important to keep an eye out on how much prices have risen in this market over the past several years, while prices are still lower than last year's peak. As of March , the standard price is over 20 per cent higher than the levels recorded in March 2021.

Cochrane

Although both sales and new listings have increased over levels seen over the past several months, they are still much lower than the high level recorded last year. In addition, unlike other areas, inventory levels are higher than the low levels recorded in the year before. Although, with only 155 units available in March and sales of 87, the months of supply have once again fallen below two months.

Residential standard prices rose over the previous month touching $501,900, for the second month in a row. Even with the monthly gain, prices are still lower than last year's levels, and the monthly high accomplished in June of 2022 at $522,600. Prices in the area have risen dramatically over the past several years and are over 20 per cent higher than levels recorded back in March 2021, just like Airdrie.

Okotoks

Sales and new listings have upgraded over levels seen earlier this year. Although, with 56 sales and 67 new listings, conditions continue extremely condensed, and with 61 units available in March, levels were around the lowest levels ever reported for the month. Okotoks would usually see over 200 units available in inventory, before the March 2020 pandemic.

Conditions remain to support the seller placing upward force on prices, with one month of supply. The standard price touched $561,600, a new reported high for the area, after three consecutive months of price gains.