Calgary Real Estate Update to January 2024


Over the span of the past three months, Calgary's real estate market has exhibited dynamic trends, offering insights into the interplay of demand, supply, and pricing dynamics.

Sales activity was robust throughout this period, with a total of 27,416 transactions in December, showcasing a slight ease compared to the previous year's peak. Notably, despite this minor dip, the levels remained significantly higher than long-term trends and pre-pandemic activity. The persistence of strong sales was particularly evident in the consistent demand for more affordable apartment condominium-style homes, reflecting the market's adaptability to shifting consumer preferences.

New listings increased over the three-month period, reaching 2,227 units in November, a nearly 40 percent rise from the previous year's exceptionally low levels. This surge in new listings, coupled with gains in October, attempted to address the persistent inventory challenges. However, the market's strong sales performance sustained a seller's advantage, with the sales to new listings ratio remaining high at 80 percent in November. This emphasized the ongoing demand-supply imbalance and the market's inclination towards sellers.

Throughout this three-month period, inventory levels consistently lagged behind demand, averaging a 44 percent decline over the 10-year average. The persistently low supply, especially for homes priced below $1,000,000, had a substantial impact on pricing dynamics. While the average annual benchmark price growth slowed from 12 percent in 2022 to nearly six percent in 2023, the market saw a new record high price. The upward pressure on home prices was further emphasized by the unadjusted benchmark price reaching $572,700 in November and continuing its ascent.

CREB® Chief Economist Ann-Marie Lurie pointed out that higher lending rates had dampened housing demand during the year. However, the market's resilience was bolstered by strong migration levels, which sustained housing demand, particularly for more affordable options.

In summary, the three-month snapshot of Calgary's real estate market showcases a scenario of persistent demand, constrained supply, and resilient pricing dynamics. The market's adaptability to evolving economic conditions, coupled with a consistent seller's advantage, positions Calgary's real estate sector on a solid trajectory despite broader economic uncertainties.