Spring Real Estate Trends in Calgary

Many Canadian markets have experienced surges in the past several decades, with markets like Toronto and Vancouver rapidly rising to become some of the most competitive on the planet. But Calgary’s real estate rise has been just as significant and unprecedented. Calgary’s home value growth has been very consistent in the past several decades, and it continues today. In 2000, the median price of a single-detached home in Calgary was $150,000, according to the Canadian Real Estate Association. Ten years later, that number had passed $400,000.

Calgary’s status as one of Canada’s biggest boom cities has led to a consistent increase in population and a strengthening of the economy. It is a vital component of the Canadian energy sector and a place filled with economic opportunity. As we slowly move past winter of 2022, let’s look at the state of the market in Calgary with an eye towards how it might perform for the rest of the year.

State of the Market

The housing situation in Calgary is similar to many other big cities in Canada and the United States. A lack of supply has dramatically impacted the price of a home. There was a decline of listings in Calgary, which was the norm throughout 2021, but in January of 2022, there was some respite from this trend in the form of many new listings. Still, inventory is in dire shape in Calgary.

Before the pandemic took root in Canada, there was a strong supply. There was over six months’ supply of homes on the market in Calgary in January of 2020, which is generally considered the ideal, healthy number. In January of 2022, that number has fallen to 1.3 months’ supply, according to Wowa.ca. Despite the decrease in inventory, sales are up. That means buyers are more competitive and willing to purchase from a smaller pool of options. This drives prices up.

Prices across property types are up for homes in Calgary, as are the number of transactions. The average sales price of a property in Calgary was $510,701, an 8% increase from January 2021. With a detached home, the average sales price was $624,161, a 12% increase from January 2021. The Calgary market is surging as we continue through winter, typically some of the least active months of the year.

Luxury Real Estate

Calgary’s luxury real estate market has never been as significant as cities like Toronto and Vancouver because the price of a home in Calgary is so much lower comparably. The luxury real estate market is defined in this case as a home that is sold for over $1 million. This is almost double the average sales price of a home in Calgary, so naturally they won’t match the volume of sales in this bracket as cities where the average sales price is closer to that million dollar price tag. However, 2021 may have signaled a change in this regard, as Calgary’s luxury market flexed its muscles.

In 2021, the overall sales of residential real estate that cost at least $1 million was 1,101 homes sold in Calgary, according to Sotheby’s. This number isn’t particularly astonishing until it is contextualized with the fact that it was a 222% year-over-year increase from 2020, which is a massive amount. The vast majority of these sold homes were detached single-family households.

According to the Daily Hive, some of this demand for luxury homes came from international purchases, but most of it has to do with a reconfiguration in Canadians’ perceptions of a home. People are now willing to spend more than ever before to get the best home possible. With an increasingly competitive market, people jump at the luxury options they can find.

Conclusion

Calgary is one of Canada’s most significant cities, and its reputation continues to rise. Compared to other major Canadian markets, the homes in Calgary are still mostly affordable. 2021 marked a year where prices surged, which continued in the first month of 2022. With the luxury market positioned to become all the more powerful in 2022, and with a still-low supply of listings, expect competition for homes in Calgary to be fierce. It is a desirable market with a lot to offer, and buyers are taking note.