The Calgary housing market has been experiencing a significant shift over the past year, with prices continuing to rise despite the ongoing challenges presented by the COVID-19 pandemic. According to the latest report from the Calgary Real Estate Board (CREB), total unadjusted residential home prices reached $541,800 in March, representing a two per cent gain over the previous month and nearly one per cent higher than prices reported last year.
While prices have yet to reach the May 2022 high of $546,000, the pace of price growth over the first quarter has been stronger than expected. This can be attributed to the persistent seller’s market conditions, which have been a defining feature of the Calgary housing market over the past year. The sustained demand for homes in the area, coupled with a limited supply of available properties, has created a highly competitive market that heavily favours sellers.
As Ann-Marie Lurie, the Chief Economist at CREB® explains, “sales have eased from record levels while remaining stronger than they were before the pandemic thanks to recent gains in migration supporting demand. The challenge has been centred around supply. As a result, existing homeowners may be reluctant to list as they struggle to find an acceptable housing alternative in this market. At the same time, higher lending rates can also reduce the incentives for existing homeowners to list their home.”
Despite these challenges, the housing market in Calgary continues to see new listings. March recorded 3,318 new listings compared to the 2,432 sales, leaving the sales-to-new listings ratio relatively high at 73 per cent. However, both sales and new listings have eased by 40 per cent compared to levels reported last March.
In conclusion, the Calgary housing market continues to be a seller’s market, with high demand for properties and limited supply driving up home prices. While there are challenges associated with the current market conditions, new listings are still being recorded, and the market remains active. For those looking to buy or sell a home in the area, it is essential to work with a trusted real estate professional who can help navigate the challenges and opportunities presented by this unique market.
