The Calgary real estate market continues its remarkable trajectory, consistently outperforming national trends and delivering impressive growth. July 2023 was no exception, as the city recorded a record-setting 2,647 sales, representing a robust 18 percent increase year-over-year. This surge not only signifies the strongest July levels ever recorded in the region but also underscores Calgary’s unique market resilience in the face of broader economic headwinds, particularly rising interest rates.
Contrary to expectations that higher lending costs would dampen buyer enthusiasm, Calgary’s market has demonstrated extraordinary strength. This dynamism is largely attributed to significant gains within the more accessible apartment condominium sector, which has emerged as a crucial driver of overall market performance.
Calgary’s Exceptional July: Defying National Trends
While many Canadian cities have experienced a cooling in their housing markets, Calgary has carved out a distinct path. The record 2,647 sales in July highlight a vibrant and active market, signaling strong buyer confidence and underlying demand. This impressive year-over-year growth positions Calgary as a beacon of stability and opportunity in the national real estate landscape. The ability of the market to not only maintain but also accelerate sales volume despite prevailing interest rate hikes speaks volumes about its inherent strengths and the unique factors at play within the region.
The apartment condominium sector, in particular, has been a star performer. Its relative affordability compared to other property types has attracted a broad spectrum of buyers, from first-time homeowners to investors, driving both sales volumes and price appreciation. This segment’s vigorous activity has been instrumental in counteracting slower movements in other areas of the market, ensuring overall positive momentum for Calgary’s housing sector.
Year-to-Date Sales vs. July’s Vigorous Rebound
Despite the strong showing in July, it’s important to contextualize the year-to-date (YTD) figures. Overall YTD sales for 2023 have witnessed a decline of 19 percent compared to the previous year. This discrepancy reflects the impact of initial interest rate hikes that led to a market slowdown earlier in the year. However, the record-breaking July sales figures are a clear indicator that the market is not just rebounding, but doing so with significant resilience and renewed vigour. The robust performance in the apartment condominium sector is effectively balancing out the declines seen in other property types over the course of the year, painting a picture of a market that is adapting and finding new avenues for growth.
Ann-Marie Lurie, Chief Economist at the Calgary Real Estate Board (CREB), aptly summarizes the driving forces behind this phenomenon: “Continued migration to the province, along with our relative affordability, has supported the stronger demand for housing despite higher lending rates.” She further notes the persistent challenge: “At the same time, we continue to struggle with supply in the resale, new home and rental markets resulting in further upward pressure on home prices.” These insights underscore the dual dynamics of strong demand meeting constrained supply, a fundamental equation that continues to shape Calgary’s competitive market.
Inventory Levels Near Record Lows: A Persistent Seller’s Market
The narrative of a seller’s market in Calgary is strongly supported by its inventory levels. Following typical seasonal patterns, both July’s sales and new listings trended downwards. However, the critical factor is that inventory levels remained stubbornly near the record low set in July 2006. This scarcity of available homes is a defining characteristic of the current market. The months of supply, a key indicator of market balance, stood at an exceptionally low 1.3 months. Furthermore, the sales-to-new-listings ratio hit an impressive 82 percent. These metrics unequivocally signal market conditions that heavily favour sellers, where homes are snapped up quickly, often with multiple offers, due to limited choice for buyers.
Such tight inventory levels mean that buyers face heightened competition and often need to act swiftly. For sellers, it translates to strong pricing power and faster sales cycles. This enduring supply-demand imbalance continues to fuel price appreciation across various segments, making Calgary one of the most competitive markets for homebuyers in Canada.
Benchmark Prices Reach All-Time High: Sustained Growth Across the Board
The upward pressure on prices has propelled Calgary’s real estate market to new heights. The unadjusted total residential benchmark price reached an impressive $567,700 in July, marking the seventh consecutive monthly gain. This consistent upward trend is a powerful indicator of sustained market strength and buyer confidence. More significantly, this price point reflects a 4.0 percent increase compared to the previous peak recorded in May 2022, demonstrating that the market has not only recovered but has surpassed its prior peak values.
The apartment condominium segment has, once again, led the charge in price appreciation. Its unadjusted benchmark price climbed to $305,900, signifying a remarkable 12 percent increase compared to last July. This substantial year-over-year growth in the condo market highlights its critical role in absorbing demand and providing a relatively affordable entry point into Calgary’s burgeoning housing market.
A Closer Look at Property Segments: Diverse Trends and Uniform Strength
While the overall market paints a picture of robust growth, a detailed examination of individual property segments reveals nuanced trends that contribute to Calgary’s unique market dynamics.
Detached Properties: Navigating Tight Conditions
The detached property sector, traditionally the most sought-after, continues to experience significant demand. In July, 1,197 sales were reported, alongside 1,587 new listings. Despite an uptick in new listings from the previous month, CREB reports that the 1,720 units available represent the lowest inventory ever recorded for July. This stark reality means that even with more homes entering the market, the supply remains critically low relative to demand. Conditions were particularly tight for properties priced below $1 million, where inventory levels saw further declines, exacerbating the competitive environment for buyers in this popular price range.
The unadjusted benchmark price for detached properties reached $690,500 in July, registering a monthly gain of nearly 1.0 percent and an impressive 7.0 percent increase compared to last July. The most significant price growth within this segment occurred in the city’s North East and East districts. These areas, offering relatively more affordable detached options, have seen heightened demand from buyers seeking value without compromising on property type.
Semi-Detached Properties: Sustained Demand and Price Growth
The semi-detached market segment also reflects the broader theme of constrained supply and strong demand. With 248 new listings and 211 sales in July, the sales-to-new-listings ratio once again exceeded 85 percent. This high ratio is a clear indicator of a very active market where a large proportion of new listings are quickly absorbed by eager buyers. The limited introduction of new listings relative to sales kept inventory levels stubbornly low, maintaining the months of supply just above one month. This consistently tight environment keeps market conditions firmly in the seller’s favour, allowing for continued price appreciation.
The unadjusted benchmark price for semi-detached properties climbed to $616,800 in July, representing a robust monthly gain of over 2.0 percent. The North East and East districts continued to lead the price growth, registering increases of more than 2.0 percent compared to June. The City Centre district, while perhaps more established, reported stable monthly prices, indicating a mature market segment within that area.
Row Properties: A Hot Segment Driving Affordability and Value
Row properties have emerged as a particularly hot segment, offering an attractive balance of space and affordability that appeals to a diverse buyer base. July saw 467 sales and 488 new listings for row properties, resulting in an exceptionally high sales-to-new-listings ratio of 96 percent. This means almost every new row home hitting the market found a buyer. Consequently, the months of supply remained below one month for the fourth consecutive month, signaling an extremely competitive environment where demand far outstrips available inventory.
This intense demand has translated into substantial price gains for row properties. The unadjusted benchmark price reached $407,500 in July, representing a monthly gain of almost 2.0 percent and a significant 14 percent increase compared to prices reported last July. Prices trended up across all districts, with the highest monthly gain occurring in the desirable West district at nearly 4.0 percent, showcasing the widespread appeal and strong growth potential of this property type.
Apartment Condominiums: The Uncontested Market Leader
Apartment condominiums stand out as the undisputed market leader, being the only property type to report a year-to-date gain in sales activity, with an impressive 16 percent increase compared to last year. This phenomenal growth underscores the condo market’s critical role in accommodating Calgary’s expanding population and offering accessible housing solutions. Recent gains in new listings have provided some necessary supply to support this surging growth; however, conditions remain exceptionally tight. The segment recorded a sales-to-new-listings ratio of 84 percent and a months of supply at 1.4 months, indicating that demand continues to heavily outweigh available inventory.
The strong demand relative to supply in the apartment condominium segment has been a primary driver of further price gains. The unadjusted benchmark price reached $305,900 in July, reflecting a nearly 1.0 percent monthly increase and an impressive 12 percent year-over-year increase. While prices have risen consistently in every district, the city center has seen the lowest year-over-year growth at nearly 9.0 percent. This still substantial growth in the City Centre suggests a more established market with a higher baseline, yet still appreciating steadily.
Looking Ahead: Sustaining Momentum in Calgary’s Dynamic Market
Calgary’s real estate market appears poised for continued momentum, driven by a unique confluence of factors. The ongoing inter-provincial migration to Alberta, spurred by its vibrant job market and comparatively lower cost of living, is expected to sustain high housing demand. While interest rates remain a key consideration for buyers, Calgary’s relative affordability compared to Canada’s other major metropolitan centers continues to draw significant attention and investment.
The persistent challenge of low inventory, spanning resale, new construction, and rental markets, will likely continue to exert upward pressure on prices. Addressing this supply deficit will be crucial for maintaining long-term market stability and accessibility. For prospective buyers, understanding the segment-specific dynamics and being prepared to act swiftly in a competitive environment will be essential. For sellers, the current market conditions present an opportune moment to capitalize on strong demand and appreciating values.
As Calgary continues to attract new residents and businesses, its real estate market is likely to remain a hotbed of activity. The city’s ability to defy national trends and deliver consistent growth positions it as one of Canada’s most compelling real estate stories, promising an exciting future for homeowners and investors alike.
Calgary’s exceptional July performance highlights a resilient and dynamic real estate market that continues to lead the national narrative. With strong demand, low inventory, and sustained price growth, particularly in the more affordable segments, the city remains a magnet for those seeking opportunity and a vibrant community.
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