Calgary House Market Trend September 2022

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In September 2022, the average house price in Calgary was $499,480. That is an increase of 4.9% annually and 3% monthly. As a result of the substitution effect, average housing prices do not accurately reflect price fluctuations. When rises in property prices or mortgage rates diminish customers’ purchasing power, they choose more economical solutions.

House Market Trend

The property types that purchasers are interested in are shifting. People are purchasing more condominiums and townhomes than they did a year ago, while purchasing fewer detached and semi-detached houses. The benchmark price of the Calgary Real Estate Board increased 25% in two years and 11% year-over-year to $527,400, providing insight into the market trend. High costs and limited supply for detached and semi-detached homes have driven purchasers toward row and apartment dwellings, according to these figures. Total sales in August 2022 were 12% fewer year-over-year, while average house prices in Calgary have risen 5% annually. Thus, Calgary’s overall sales volume declined by 7% year-over-year to $949.5 million. On average, residences in Calgary sell for 98% of their market price.

As another pricing signal, we can also consider the fact that the median price of a home in Calgary has increased by 8% annually and 4.9% monthly to $460,000. In addition, year-to-date data indicates that Calgary’s benchmark real estate prices have climbed by 14%, hitting $532,100. In September, detached and semi-detached property prices grew by 10.5% and 9.5% annually, to $638.8k and $509.1k, respectively. Similarly, row home and apartment prices grew by 8.8% and 20%, respectively, year-over-year, to $343.9k and $308.6k.

Calgary Tower
The Bank of Canada (BoC) predicted that the COVID epidemic would cause a severe economic slowdown in the first quarter of 2020. Thus, the Bank of Canada lowered its overnight policy interest rate to near zero and began injecting billions of dollars into the Canadian economy. The real estate market in Calgary was quite busy from February through April of 2022. In September 2022, the sale of 1,901 properties occurred. This indicates a significant decrease in activity compared to the spring. The increased level of activity earlier this year may have been the result of customers rushing to make purchases in anticipation of an increase in interest rates. New listings in the city of Calgary declined 9.7% year over year (YoY) and 3.4% month over month (MoM) to 2,625 residences, while the ratio of sales to new listings moderated from 72% to 72%. Inventory declined 6.8% month-over-month to 4,453 properties, which is equivalent to 2.34 months of sales compared to 2.2 months last month. Compared to the spring of 2022, the market is shifting from one that favours sellers to one that is balanced.
Calgary Saddledome

The intricacies of the Calgary housing market are highly intriguing. While prices are gradually falling, inventory levels remain rather low. We saw a decline in sales and an even steeper decline in listings. This circumstance indicates that purchasers have grown more disciplined about their buying price and more risk-averse. There seems to be a disparity between prospective buyers’ and sellers’ comprehension of market dynamics. While prospective buyers seem to anticipate a greater downward risk to real estate prices and have grown more price-conscious, sellers appear to view the downside risk as transient. They are anticipating the resumption of home price inflation.

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