January Real Estate Statistics 2023
Supply of lower-priced homes remains low in January
The height of new listings in January has fallen to the lowest seen since the late 90s. The pace of decline was higher for lower-priced properties, while new listings had fallen in nearly every price range.
Sales action did slow down compared to the peak levels reported last year, but remained continuous with long-term trends. Although, there has been a change in the composition of sales as detached homes only compromised 47 percent of all sales.
"Higher lending rates are causing many buyers to seek out lower-priced products in our market," said CREB Chief Economist Ann-Marie Lurie. "However, the higher rates are likely also preventing some move-up activity in the market impacting supply growth for the lower-priced homes. This is causing differing conditions in the housing market based on price range."
With 2,541 units obtainable in inventory, levels remain 43 per cent below than the long-term trends for the month. There is a notable variation by price range, while overall inventory levels are slightly below of what last January was. Homes listed below $500,000 recorded year-over-year inventory falls of nearly 30 per cent while inventory levels improved for home prices above that level.
Lower supply levels are preventing a notable change toward steady conditions and prices did go up slightly over last month separating the seventh straight month slide, even though conditions are not as compressed as last year. As of the month of January, the standard price touched $520,900, 5 percent higher than last January, but still lower than the May 2022 peak of $546,000.
The sector of detached homes had witnessed the largest fallback despite the year-over-year rise in inventory levels. Higher-lending rates are cooling demand for the higher-priced homes which is helping inventory gains. For the moment, a tight supply of lower-priced products is intercepting stronger sales in the lower price ranges.
The differences in the market most likely produce divergent trends in pricing as prices have trickled down in the higher-priced City Centre, while still recording some reasonable gains in other areas of the city. Although, the standard price touched $622,800 in January, slightly higher than levels recorded in December, but still lower than the monthly peak reached in May 2022.
Sales in the month of January have slowed down compared to last year's levels, but stay above levels reached before the pandemic. At the same time, a fallback in new listings has left inventory levels below the already low levels recorded last year in January. Semi-detached homes have seen changes where the demand stays relatively strong for the lower-priced product relative to the supply, likely forcing divergent trends in pricing, similar to the detached sector.
Most areas recorded a monthly standard price growth in the month of January. Although, prices did trickle down in the higher-priced City Centre district forcing Calgary's semi-detached standard prices to ease slightly over levels seen in this past December of 2022. Prices remained about six per cent higher than the level recorded in January, despite the monthly adjustment.
The sector of row homes sales have slowed over last years reported high, but continued above long-term trends for the month. Sales would more than likely been stronger if more listings came onto the market. In the month of January, new listings declined over the previous year and were over 20 per cent below the long-term trends. The changes in both sales and new listings did a small to change the low inventory situation and the months of supply continued below two months in January.
The extremely tight conditions did also deflect any downfall pressure on prices which posted a nearly one percent gain over December levels. Levels are still over 12 per cent higher than last January, and only a bit lower than the $363,700 monthly high touched in June 2022, even with the standard price of $361,000.
Due to the amount of new listings coming onto the market, sales for apartment condominiums did not see the same pace of downfall as other property sectors. However, inventory levels continued well below long-term trends for the month and have not been at this type of low since January 2014.
The changes to both sales and inventory have left the apartment condominium sector with months of supply that is lower than levels seen at the start of 2022. The adjustment to affordable selections is also impacting prices within this sector. In January, prices had gone up from December levels driven by powerful gains in the lower priced area of the North East and East. Altogether, this sector's prices in the city touched $277,600, one percent higher than last month and a year-over-year gain of nearly 10 per cent, shortening the spread from reported high prices set in 2014.
Regional Market Facts
January sales eased over last year's reported high but continued steady with long-term trends for the month. The fallback in sales did outspace the fallback in new listings forcing inventory levels to gradually get better over the exceptionally low levels recorded last year. Despite the inventory gain, levels continued over 50 per cent lower than long-term trends in the month of January.
These changes in the market have forced the months of supply to rise over last January's 2022 reported low. Nonetheless, with less than two months of supply, conditions continue to remain relatively tight and support a reasonable monthly price gain. In January, the standard price touched $480,200, almost eight per cent higher than last January, but still below the monthly high of $510,700 touched in April 2022.
January sales in Cochrane eased over last year's record high but continued comparable to long-term trends for the month. New listings also slowed, but not near the same pace as sales. Inventory levels did go up from the lows reported last January. Inventory levels are nearly 40 per cent below long-term trends, while improving inventories is likely welcome new to most buyers.
Changes in both sales and inventory have forced the months of supply to rise nearly three months. This has relieved some force off homes prices which have seen great gains over the past two years. Altogether, the standard price in the month of January was $488,900, over on per cent lower than last month but still seven per cent higher than January 2022 levels.
Sales and new listings had slowed down in January, deflecting any significant addition to inventory compared to what was available in the market at the end of 2022. Although there is more supply in the market compared to last January's reported low, with only 56 units available, this is still 61 per cent below long-term trends for the town.
The consistent tight market conditions have helped significant price growth over the past several years. Although recent changes have taken some of the force off the pace of price growth, prices noticed some further gais this month. In January, the standard price touched $539,000, an increase from December and a year-over-year gain of nearly seven per cent.