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.
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.
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.